Private Equity
Fresh Direct Produce Ltd has acquired Emperor Specialty Foods Ltd, a Richmond, British Columbia-based distributor of mushrooms, pears, and other specialty fruits and vegetables. No financial terms were disclosed. The seller was President Bob McDonald, who has led Emperor since its founding in 1986. Fresh Direct Produce, a Vancouver-based distributor of fresh, ethnic, tropical, organic and specialty produce, said the purchase of Emperor’s products, customers and locations will create new growth opportunities. Fresh Direct Produce was acquired last year by U.S. private equity firm Hammond, Kennedy, Whitney & Co (HKW).
2 min read · 18 July 2019
Kersia has acquired Choisy Laboratories Ltd, a Louisville, Québec-based developer and maker of chemical, biotechnological and biosecurity hygiene solutions, for an undisclosed amount. The sellers were the Trudeau family and Champlain Financial Corp, a Canadian private equity firm. Champlain invested in 2015. Founded in 1946 by President and CEO Guy Trudeau, Choisy is primarily active in the food service and hospitality market segments in Canada and Europe. Kersia, a Dinard, France-based biosecurity and food safety company, said the acquisition grows its footprint in North America. The transaction was completed with the support of French private equity firm Ardian, which acquired Kersia in 2016.
5 min read · 18 July 2019
Montréal-based cement products company McInnis Cement has closed a $500 million refinancing of its private capital. The deal includes $300 million provided by an increase to McInnis Cement’s senior loan from a syndicate of eleven Canadian and international banks. It also includes a $200 million subordinated loan from Caisse de dépôt et placement du Québec (CDPQ) and Beaudier, an investment arm of the Beaudoin family, the company's main shareholders. The proceeds will be used to support McInnis Cement's growth and repay a bridge loan provided by BlackRock in 2016. CDPQ took a controlling stake in the company in 2016 when a cement project in Québec's Gaspé peninsula experienced cost overruns.
4 min read · 17 July 2019
Clairvest Group has filed a lawsuit in a U.S. court to block the proposed merger of portfolio company Accel Entertainment Inc with TPG Pace Holdings Corp, a special purpose acquisition company (SPAC). The deal, announced in June, would result in a combined entity with an expected initial value of about US$884 million, TPG Pace said. Clairvest described the merger as an "improper action" by Accel that also violates its shareholder approval rights and does not constitute a "valid drag-along sale in accordance with Accel’s charter." In 2016, Clairvest acquired a minority stake in Accel, a Bolingbrook, Illinois-based video gaming terminal operator, investing US$32.5 million. TPG Pace is sponsored by an affiliate of U.S. private equity firm TPG.
2 min read · 17 July 2019
Subversive Capital Acquisition Corp (SCAC) has closed its initial public offering (IPO) on the Neo Exchange, raising proceeds of US$575 million, including the greenshoe option. The offering was distributed by Canaccord Genuity Corp. SCAC, a newly-formed special purpose acquisition corporation (SPAC), said it will now focus on sourcing and completing a qualifying transaction, targeting opportunities in the cannabis and related sectors. New York-based SCAC is sponsored by Subversive Capital Sponsor LLC. Its chairman is Michael Auerbach, general partner of U.S. venture capital firm Subversive Capital.
5 min read · 16 July 2019
Canada Infrastructure Bank (CIB) has agreed to provide up to $20 million in debt financing to the Township of Mapleton's water and wastewater project. The Ontario township is seeking a consortium to design, build, finance, operate and maintain its new and existing water and wastewater infrastructure for up to 20 years. CIB said its commitment will improve the cost of project financing and attract private capital expertise while ensuring risk transfer to the private sector. CIB was established in 2017 by Ottawa to invest $35 billion in infrastructure projects alongside private investors.
4 min read · 15 July 2019
Canadian mid-market private equity firm Novacap has acquired a majority interest in Spectrum Health Care, a Toronto-based provider of home health care services. Terms weren't released for the deal, which saw Novacap partner with Spectrum's management team, led by President and CEO Lori Lord. Spectrum was acquired in 2012 by Canadian mid-market private equity firm Clearspring Capital Partners. It is not known if Clearspring retains an interest. Novacap Senior Partner Marc Paiement said the partnership with Spectrum will explore opportunities to expand the company's capabilities and geographic reach. The deal was done by Novacap's industries group, which last year began raising Novacap Industries V at a $650 million-plus target.
3 min read · 15 July 2019
Aqua Terra Water Management LP has closed senior secured syndicated credit facilities totalling US$80 million with an option to increase the amount to US$100 million. Canadian financial institution ATB Financial was the lead arranger and administrative agent for the syndicate. Aqua Terra, an oilfield water management and logistics company with primary offices in Houston and Calgary, said it will use the proceeds for refinancing and to fund greenfield development projects in the Permian Basin. Aqua Terra was launched in 2013 by Bregal Partners, a U.S. mid-market private equity firm.
3 min read · 15 July 2019
Ardagh Group has agreed to combine its food and specialty metal packaging unit with Exal Corp, a Youngstown, Ohio-based manufacturer of aluminum containers. The deal, expected to close in Q4 2019, will create a Netherlands-based metal packaging business called Trivium Packaging. It will operate 57 production facilities primarily in Europe and the Americas and serve a range of end markets. When the transaction is completed, Ardagh, a Luxembourg-based maker of packaging solutions, will hold 43 percent of Trivium and receive about US$2.5 billion in proceeds. Ontario Teachers' Pension Plan, which in 2010 led the acquisition of Exal, will hold a 57 percent stake.
5 min read · 15 July 2019
Neo Performance Materials Inc (TSX: NEO) has agreed to acquire the assets of Asia Magnets, a Chuzhou, China-based maker of compression-moulded neodymium-iron-boron (NdFeB) magnets, for about US$9.9 million plus working capital. The purchase is being made by Magnequench, the Asian affiliate of Neo, a Toronto-based maker of rare-earth and rare-metal-based functional materials. Neo said the transaction will enable its production of NdFeB magnets for automotive, home appliance and other markets. Earlier this year, Luxfer Holdings PLC's proposed acquisition of Neo was terminated. The deal was supported by Oaktree Capital Management, Neo’s largest shareholder.
4 min read · 15 July 2019
