Private Equity
Knowlton Development Corp (KDC/ONE) has agreed to acquire the manufacturing business and related assets of Swallowfield plc, a Wellington, U.K.-based developer and maker of personal care and beauty products. The transaction, expected to wrap up in August, reflects a purchase price of about $57 million (£35 million), subject to a working capital adjustment. KDC/ONE, a Longueuil, Québec-based custom maker of beauty, health and personal care brands, said the deal, which follows this month's acquisition of Alkos Group, will grow its European production capabilities, add technologies, diversify its customers, and bolster distribution. KDC/ONE was acquired last year by a consortium led by U.S. private equity firm Cornell Capital for more than $1 billion.
6 min read · 15 July 2019
Crown Capital Partners has acquired WireIE Holdings International Inc, a Richmond, Ontario-based network operator that specializes in deploying and managing carrier-grade data networks in under-served markets. Crown, a Canadian specialty finance firm, said it acquired all the debt and equity of WireIE for a nominal amount on closing and a performance-based earn-out payment of up to $5 million. Last year, Crown provided a $10 million income streaming facility to WireIE. It said it has invested $7.6 million to date and will provide additional capital as required to fund future growth in Canada and abroad. WireIE will continue to be led by President and CEO Rob Barlow, who co-founded the business in 2007.
3 min read · 15 July 2019
Canadian private equity firm Regimen Equity Partners has invested in K&C Silviculture Ltd, an Oliver, British Columbia-based forest seedling services company. Terms weren't released for the deal, which saw Regimen partner with K&C Managing Director Brad Powell. Established in 1981, K&C operates a single-site forest seedling nursery providing growing, cold storage and logistics services. Its Canadian and U.S. customers include forestry companies, public and private landowners, and native bands. K&C is Regimen's sixth platform investment and its first in Canada’s forestry industry. In January, Regimen raised $60 million in the close of its inaugural long-life fund.
3 min read · 15 July 2019
People's United Bank has led a US$80 million senior secured credit facility for Invesque Inc (TSX: IVQ.U), a Toronto-based healthcare real estate company. The proceeds will be used to refinance existing debt associated with four senior living facilities in Pennsylvania and New Jersey. The properties are owned by a joint venture of Invesque and Heritage Senior Living LLC. Earlier this year, Invesque, formerly Main Street Health Investments, agreed to acquire Commonwealth Senior Living LLC, a portfolio company of U.S. real estate private equity firm Municipal Capital Appreciation Partners. People's United Bank is an affiliate of U.S. financial services firm People's United Financial.
4 min read · 12 July 2019
Alaris Royalty Corp has invested an additional US$60.2 million in PF Growth Partners LLC (PFGP), a Timonium, Maryland-based Planet Fitness franchisee. Alaris, which first invested in 2014, provided US$43.7 million of preferred equity as well as US$16.5 million in exchange for a minority interest. Founded in 2007 by Victor Brick and Lynne Brick, PFGP operates 63 fitness clubs with over 530,000 members in Maryland, Tennessee, Florida, Washington D.C., Washington State and California. It plans to have more than 95 clubs by the end of 2024. Alaris, a Canadian alternative equity firm, said it has so far generated a 23 percent internal rate of return on its investment in PFGP.
7 min read · 11 July 2019
Proxy advisors Glass, Lewis & Co and Institutional Shareholder Services Inc (ISS) have recommended shareholders of WestJet Airlines Ltd (TSX: WJA) vote for the company's proposed acquisition by Onex Corp. In May, the Canadian private equity firm offered to buy Calgary-based WestJet, Canada’s second-largest carrier, for $31 per share. The deal is valued at $3.5 billion, or $5 billion including debt. Glass Lewis said the proposal "represents a compelling exit valuation and an attractive market premium" for shareholders. WestJet shareholders will vote on the deal on July 23.
5 min read · 11 July 2019
Entertainment One (eOne) has agreed to acquire Daisybeck Studios, a Leeds, U.K.-based television company producing factual, factual entertainment and event programming. No financial terms were disclosed. Daisybeck Founder and Managing Director Paul Stead will continue to oversee operations. EOne, a Toronto-based entertainment content studio, said the acquisition is in line with its planned expansion of non-scripted activities in the United Kingdom. EOne is a portfolio company of Canada Pension Plan Investment Board (CPPIB). In 2015, CPPIB acquired a minority stake from Marwyn Investment Management for $290 million.
3 min read · 11 July 2019
Hudson’s Bay Co (TSX: HBC) said a special committee of its board has hired advisors to assess a $1.74 billion proposal to take the Canadian retailer private. The committee hired TD Securities as independent valuator and Centerview Partners as special advisor. It also retained J.P. Morgan Securities as financial advisor and Blake, Cassels & Graydon as legal counsel. The board formed the committee to evaluate a $9.45 per-share acquisition offer by a group led by Executive Chairman Richard Baker, announced in June. The group includes Rhône Capital and WeWork Property Advisors. Several Hudson’s Bay minority shareholders, including Land & Buildings Investment Management, oppose the deal.
2 min read · 11 July 2019
Seequent has acquired a minority interest in Minalytix, a Sudbury, Ontario-based mining data software company. Terms weren't disclosed. Founded in 2013 by CEO David Peres and COO Robert Patterson, Minalytix is the maker of MX Deposit, a drill hole and sample data management platform for the exploration and mining industry. Seequent, a Christchurch, New Zealand-based developer of geoscience analysis, modelling and collaborative technologies, said it will partner with Minalytix to maximize the value of MX Deposit for customers. Last year, Seequent was backed by U.S. technology private equity firm Accel-KKR.
5 min read · 11 July 2019
U.S. mining private equity firm Orion Mine Finance has agreed to acquire 70.4 million common shares of Victoria Gold Corp (TSX-V: VIT), a Toronto-based gold exploration and development company. Orion bought the shares for $32 million from Electrum Strategic Opportunities Fund, a private equity fund managed by U.S. investment firm Electrum Group. Following the deal, Orion will hold an about 47 percent interest in Victoria, assuming the full exercise of warrants, up from about 39 percent. Victoria is currently constructing its Eagle Gold Mine in Yukon, which is expected to begin pouring gold this year. Orion and other investors agreed to finance the project in 2018.
3 min read · 10 July 2019
