Private Equity
Canadian specialty finance firm Crown Capital Partners has provided an additional $5 million to Triple Five Intercontinental Group Ltd, a Calgary-based explorer, developer and producer of petroleum and natural gas. The financing adds to a $15 million loan provided last year. Triple Five is currently generating about 5,100 barrels of oil-equivalent production per day from eight Alberta wells, of which about 81 percent is natural gas and 19 percent is natural gas liquids. It will use the deal's proceeds to support growth initiatives. Crown is investing from its $300 million special situations fund, Crown Capital Partner Funding.
2 min read · 15 March 2019
Toronto-based pharmacy and healthcare services provider Centric Health Corp (TSX: CHH) has closed a convertible preferred shares financing, raising proceeds of $12 million. The investor was Ewing Morris & Co Investment Partners, a Canadian boutique investment firm. The transaction will give Ewing Morris a 12.2 percent interest in the company and the right to nominate a board director. Centric Health, established in 2001 and led by President and CEO David Murphy, said the proceeds will be used to repay senior debt.
5 min read · 14 March 2019
Innovative Chemical Products Group (ICP) has acquired Benefect, a Hamilton, Ontario-based producer of disinfectant and cleaning supplies for the environmental remediation industry. No financial terms were released. Founded in 1997 by CEO S. Samuel De Ath, Benefect developed its disinfectant products using botanical technology. ICP, an Andover, Massachusetts-based maker of coatings, adhesives and sealants, said the acquisition adds to its portfolio of brands for the building and construction industry. ICP was formed in 2015 with U.S.-based Audax Private Equity's merger of California Products Corp and Nicoat.
3 min read · 14 March 2019
Canadian mid-market private equity firm TorQuest Partners has acquired Prepac Manufacturing Ltd, a Delta, British Columbia-based designer and maker of affordable, ready-to-assemble home furniture. No financial terms were disclosed. Founded in 1979 by Steve Simpson, Prepac sells its products exclusively through major online furniture retailers in North America. The company will continue to be run by senior management led by President Jim Mathison, all of whom partnered in the deal. Simpson will retain a significant interest and sit on the board. Prepac is the eighth platform investment of TorQuest Partners Fund IV, which raised $925 million in 2016.
3 min read · 14 March 2019
The pace of deal activity in Canada's private equity (PE) market slowed in dollar terms in 2018, according to a report by the Canadian Venture Capital and Private Equity Association (CVCA). Disclosed PE deployments to some 543 deals totalled $22.3 billion last year, down 15 percent from $26.4 billion invested in 2017. Dollar values in 2018 were 62 percent higher, however, compared to 2016 values. PE investment activity showed signs of recovery in Q4 2018, when values reached nearly $6 billion in all, or triple the amount on a quarter-over-quarter basis. More than one-fifth of PE deals done in Canada in 2018 were located in industrial and manufacturing sectors, while IT sectors accounted for a 16 percent share.
5 min read · 13 March 2019
Market Maker Agriculture, a Canadian agribusiness private equity firm, has acquired a majority interest in Arkansas Valley Seed (AVS), a Denver, Colorado-based seed supplier operating in the Western United States. No financial terms were disclosed for the deal, which was announced by SDR Ventures, the sell-side advisor to AVS. Market Maker President Greg Skotnicki said the acquisition will support the company's growth and allow the principals to plan their succession. AVS CEO Richard Avila and owner Orlin Reinbold will retain minority stakes. AVS is Ottawa-based Market Maker's third agribusiness investment to date.
3 min read · 12 March 2019
Mastercard (NYSE: MA) has agreed to acquire Ethoca, a Toronto-based provider of technology solutions that address digital commerce fraud. Terms weren't released for the deal, which is expected to close in Q2 2019. Founded in 2005 by CEO Andre Edelbrock, Ethoca supports more than 5,400 merchants and 4,000 card issuers worldwide in identifying and resolving fraudulent transactions. Mastercard said the acquisition will add to its cyber strategy and help increase protection in the digital space. Ethoca is backed by Spectrum Equity, Pivot Investment Partners and Difference Capital Financial. Spectrum, a U.S. growth equity firm, led a US$45 million minority investment in the company in 2015.
3 min read · 12 March 2019
Azelis SA has acquired Chemroy Canada Holdings Inc, a Brampton, Ontario-based specialty chemicals, plastics and food ingredients distributor. No financial terms were disclosed. Founded in 1967, Chemroy offers warehousing across Canada and has additional offices in Laval, Québec and Vancouver. Azelis, a Belgian distributor of specialty chemicals and food ingredients, said the acquisition strengthens its presence in key segments of the Canadian market. Last year, Swedish private equity firm EQT and Canada's Public Sector Pension Investment Board (PSP Investments) acquired Azelis from Apax Partners.
2 min read · 11 March 2019
Maksteel has acquired LexWest Steel, a Los Angeles-based full-line distributor of flat-rolled steel products in the United States. No financial terms were disclosed for the deal, which will see LexWest rebranded as Maksteel USA. Based in Mississauga, Ontario, Maksteel is a steel service centre and processor. It was acquired last year by Union Partners, a U.S. metals and logistics private equity firm, from Welded Tube of Canada Group of Companies. Union Partners said the acquisition of LexWest expands Maksteel's geographic footprint and processing capabilities. It increases the company's North American facilities to nine.
2 min read · 11 March 2019
Ardenton Capital Corp has invested in Budget Trading Ltd and Budget Greeting Cards Ltd (BGC), together a U.K. designer and seller of greetings cards, gift wrap, stationery and celebratory products. Terms weren't released for the deal, which was led by Ardenton U.K. Director Michael Bradbury. Founded in 1984, BGC operates from Manchester, England and Dublin, Ireland and sells its products to small businesses. Ardenton, a Canadian private equity firm, said it will support the company's geographic expansion and development of an e-commerce platform. BGC is Ardenton's fourth U.K. deal. It follows last November's investment in Shaftec Automotive Components Ltd.
3 min read · 11 March 2019
