Private Equity
Ontario Teachers' Pension Plan has invested in Space Exploration Technologies Corp (SpaceX), a Hawthorne, California-based space launch provider. No financial terms were disclosed. CNBC reported the investment is part of a new financing of more than US$300 million. Founded in 2002 by U.S. entrepreneur Elon Musk, SpaceX designs, manufactures and operates advanced rockets and spacecraft. It has accounted for more than 75 launches to date. SpaceX is the inaugural deal of Teachers’ Innovation Platform (TIP), unveiled in April to make late-stage venture capital and growth equity investments in technology companies.
2 min read · 27 June 2019
U.S private equity firm Lightyear Capital and Ontario Teachers’ Pension Plan have agreed to acquire Lendmark Financial Services LLC, a Lawrenceville, Georgia-based consumer finance platform. Terms weren't released for the deal, which is expected to close later this year. Reuters previously reported the transaction's value at US$600 million, excluding debt. The seller is Blackstone Group, which acquired Lendmark in 2013 from BB&T Corp. Established in 1996, Lendmark provides both direct consumer installment loans and sales finance (retail) products to borrowers.
4 min read · 27 June 2019
Canadian healthcare private equity firm Persistence Capital Partners (PCP) has invested in Anova Fertility & Reproductive Health, a Toronto-based fertility and reproductive care business. No financial terms were disclosed. Established in 2016 by CEO Marjorie Dixon, Anova provides a full-service fertility and in vitro fertilization clinic. PCP will work with the company's management team on strategic growth initiatives, including opening new clinics, pursuing investment and partnership opportunities, and investing in new technologies and techniques. Anova is the second investment of PCP's most recent fund.
4 min read · 27 June 2019
Air Canada (TSX: AC) has agreed to acquire all of the issued and outstanding shares of Transat AT Inc (TSX: TRZ), a Montréal-based tour operator, for $13 per unit. The all-cash deal, expected to close in early 2020, is valued at about $520 million. Transat's board has approved the transaction and is recommending shareholder approval. Air Canada, Canada's largest airline, said the combination of the businesses will enhance capabilities in the global leisure travel market and offer customers more destinations and connections. Transat's shareholders include Fonds de solidarité FTQ and Caisse de dépôt et placement du Québec.
8 min read · 27 June 2019
Alexander Mann Solutions has acquired Karen HR Inc, a Toronto-based human resources technology company, for an undisclosed amount. Launched in 2017 and led by CEO Noel Webb, Karen HR provides Karen AI, a cognitive recruiting solution that enhances recruitment processes and boosts candidate engagement. A second product, Karen Frontier, handles employee inquiries. Alexander Mann, a London-based talent acquisition and management services company, said the deal will accelerate the launch of new digital offerings. Last year, Alexander Mann was acquired by OMERS Private Equity for about US$1.1 billion. The seller was New Mountain Capital.
3 min read · 27 June 2019
Peloton Capital Management, founded by two former Ontario Teachers’ Pension Plan principals, raised an initial $330 million for its first long-term mid-market fund. The Toronto private equity firm held PCM Fund I’s initial close in March, securing two-thirds of the $500 million target after three months of fundraising, Managing Partner Steve Faraone told PE Hub Canada. PCM kicked off fundraising in January, shortly after announcing Fund I’s $150 million anchor commitment from Stephen Smith, CEO of First National Financial Corp. The fund has since raised capital from family offices, institutions and wealthy investors, Faraone said. Among them are Canada’s largest banks, including Bank of Montreal, CIBC, Royal Bank of Canada and Toronto-Dominion Bank.
2 min read · 27 June 2019
Canada Infrastructure Bank has agreed to provide $55 million of funding to further explore VIA Rail Canada's proposal for high frequency rail in the Québec City-Toronto corridor. The funding is part of a $71.1 million investment that includes money from the federal government. It will be used to establish a joint project team and support work to preserve the option of interoperability with local transit providers in Montréal and Toronto. Canada Infrastructure Bank was set up in 2017 by Ottawa to invest $35 billion in infrastructure projects alongside private investors.
5 min read · 26 June 2019
Ontario Power Generation (OPG) has agreed to acquire Cube Hydro Partners, a Bethesda, Maryland-based operator of small and medium-sized hydropower facilities in the northeast and southeast United States. The deal values Cube Hydro at US$1.12 billion ($1.48 billion). It is expected to close in the months ahead. The seller is I Squared Capital, a U.S. infrastructure investment firm. Cube Hydro was formed in 2014 when Enduring Hydro partnered with I Squared to develop and acquire hydropower plants. OPG, an Ontario government-owned electricity generator, said the acquisition will add scale to its U.S. hydro platform, create synergies, and expand opportunities for capital deployment.
2 min read · 26 June 2019
Pestell Group has acquired VersaPet Inc, a Toronto-based manufacturer of private label and branded cat litter products. Terms weren't disclosed. Antares Capital, BMO Sponsor Finance and PennantPark led the debt financing. Based in New Hamburg, Ontario, Pestell is an animal feed minerals and ingredients distributor, animal litter and bedding products maker, and dental pet treats co-maker. It said the deal expands its geographic presence and cat litter portfolio. Pestell was acquired last year by U.S. mid-market private equity firm Wind Point Partners. VersaPet is the company's third add-on transaction.
4 min read · 26 June 2019
Onex Corp has received approval from the federal Minister of Transport to acquire Calgary-based carrier WestJet Airlines Ltd (TSX: WJA). Last month, the Canadian private equity firm offered to buy WestJet, Canada’s second-largest carrier, for $31 per share. The deal is valued at $3.5 billion, or $5 billion including debt. The Minister of Transport concluded the acquisition "does not raise public interest issues as related to national transportation," WestJet said. The deal remains subject to other regulatory approvals, approval by WestJet shareholders, and final approval by the Court of Queen’s Bench of Alberta.
3 min read · 25 June 2019
