Private Equity
Public Sector Pension Investment Board, Canada’s fourth largest pension system, increased activity in the global private equity market last year, deploying $6.3 billion. The outlay, noted last week in PSP Investments’ fiscal 2019 report, is up 43 percent from the $4.4 billion disbursed in fiscal 2018. That helped push PE portfolio assets to $24 billion. PE investments also generated a one-year return of 16.1 percent in fiscal 2019, exceeding a benchmark of 12.3 percent. These data indicate PSP is continuing to reap the rewards of a four-year strategy that changed the way it invests in PE and infrastructure, in part by doing more direct deals.
2 min read · 19 June 2019
Desjardins Group Pension Plan (DGPP) has agreed to acquire a portion of EDF Renewables Canada Inc's stake in the Cypress Wind Project for an undisclosed amount. The acquisition will take place upon completion of construction of the project, consisting of 48 turbines with a capacity of 201.6 megawatts and to be located southeast of Medicine Hat, Alberta. It is expected to be operational by 2021. DGPP will own 40.5 percent of the project, EDF Renewables Canada, 34.5 percent, and the Blood Tribe, advised by Indigena Capital, the remaining 25 percent. DGPP is the $12.9 billion pension plan of Canadian financial co-operative Desjardins Group.
4 min read · 19 June 2019
Ottawa's Competition Bureau said it is challenging Thoma Bravo's recent acquisition of Aucerna, a Calgary-based provider of planning, execution and reserves solutions to the oil and gas industry. The Bureau said Thoma Bravo now owns the two largest energy reserves software businesses in Canada, Aucerna and Quorum Software, a situation that is likely to "substantially lessen competition." The Bureau filed an application with the Competition Tribunal for an order requiring the U.S. private equity firm to sell one of its products, either Quorum's MOSAIC or Aucerna's Val Nav. Thoma Bravo announced the acquisition of Aucerna, formerly known as 3esi-Enersight, in February.
3 min read · 19 June 2019
Canadian private equity firm Newlook Capital has acquired a majority interest in Integrated Fire & Security Solutions (IFSS), a Fort Myers, Florida-based provider of access control and security solutions. No financial terms were disclosed. The deal was announced by Generational Equity, which advised IFSS. Founded in 2006, IFSS designs, develops and installs fire alarm, closed-circuit television and access control systems in Florida. Its services range from everyday office use to securing airports and seaports. Toronto-based Newlook invests in industrial services companies and other opportunities across North America.
2 min read · 19 June 2019
KingSett Capital has agreed to acquire the Eastern Canada portfolio of Dream Industrial REIT, a Toronto-based owner and operator of industrial distribution and warehousing properties. KingSett, a Canadian real estate private equity firm, agreed to pay about $271 million. The deal is expected to close in the third quarter. The portfolio consists of 38 industrial properties, totalling about 2.8 million square feet of gross leaseable area. Based in Toronto, KingSett invests in office, retail, residential, industrial, hotel and development properties and other real estate assets.
3 min read · 18 June 2019
Richard Baker and Ontario Teachers’ Pension Plan have agreed to cancel a January agreement that would have seen a Baker affiliate acquire the pension fund's about 10 percent stake in Canadian retailer Hudson’s Bay Co (TSX: HBC). As a result, the common shares held by Ontario Teachers' will be subject to the proposed $1.74 billion take-private acquisition of Hudson’s Bay, made by a group of shareholders that includes Baker, the company's executive chairman. The deal's termination follows criticism of the proposal by U.S. hedge fund Land & Buildings Investment Management. In 2013, Ontario Teachers' provided Hudson’s Bay with funding to support its acquisition of Saks Inc.
2 min read · 18 June 2019
Canadian private equity firm Ardenton Capital Corp has acquired a majority stake in Food Innovations Baking Group, a Manchester, U.K.-based maker of specialist products for the home baking and retail market. Terms weren’t disclosed. The seller was U.K. conglomerate Doric Group. Founders Peter Ward and Robert Ward will exit the baking group business. Founded in 2004, Food Innovations provides edible and non-edible products in a range of packaging formats. The deal is Ardenton’s fifth in the United Kingdom and follows its March investment in BGC. Ardenton said it will support Food Innovations' organic and acquisition-based growth.
3 min read · 18 June 2019
Street Capital Group Inc (TSX: SCB), a Toronto-based provider of residential mortgage loans, has agreed to be acquired by RFA Capital, a Canadian private real estate investment and asset management firm. RFA agreed to acquire all issued and outstanding common shares for 68 cents per unit in cash, or about $85 million. RFA also committed to increase the company's equity capital by a minimum of $50 million and make follow-on capital available to support balance sheet growth. Street Capital, which has about 130,000 mortgage customers in Canada, will gain immediate access to up to $5 billion of new mortgage funding as a result of the deal, expected to close this year.
7 min read · 18 June 2019
U.S. hedge fund Land & Buildings Investment Management said it opposes the proposed acquisition of Canadian department store operator Hudson’s Bay Co (TSX: HBC) by a group of shareholders, including Executive Chairman Richard Baker. Last week, Baker, Rhône Capital and other shareholders offered to take Hudson’s Bay private for $9.45 per share, representing a total value of $1.74 billion. Land & Buildings said the proposal is "woefully inadequate" and unlikely to receive majority approval of remaining shareholders. The hedge fund requested Hudson’s Bay undertake a strategic alternatives process and hire an investment bank to assess the value of its real estate and retail banners.
4 min read · 18 June 2019
Swiss mining private equity firm Pala Investments has agreed to acquire the issued and outstanding common shares it does not already own of Cobalt 27 Capital Corp (TSX-V: KBLT), a Toronto-based battery metals streaming company. Pala agreed to pay $5.75 per share in cash and stock in a new listed company, Nickel 28 Capital Corp. The deal, expected to close in August, has a total value of $501 million. Nickel 28 will hold Cobalt 27's interest in nickel-cobalt mine Ramu, royalties on future projects, and certain equity stakes. Cobalt 27 was founded in 2017 to create exposure to metals required for electric vehicles and energy storage. It is led by Chairman and CEO Anthony Milewski, a former Pala managing director.
9 min read · 18 June 2019
