Private Equity
U.S. private equity firm Platinum Equity has agreed to acquire Livingston International Inc, a Toronto-based specialist in customs brokerage, freight forwarding and trade consulting. No financial terms were disclosed. The sellers are Canada Pension Plan Investment Board (CPPIB) and U.S. private equity firm Sterling Partners, which acquired the listed Livingston in 2010 for $324 million. Founded in 1945 by Gerry Livingston, and today led by CEO Dan McHugh, Livingston provides its customs brokerage and trade services to more than 30,000 businesses in North America and around the world. Before going public in 2002, the company was backed by Canadian private equity firm CAI Capital Partners.
3 min read · 21 February 2019
Far Resources Ltd, a Vancouver-based developer of battery metals mineral resources, has secured a draw-down equity facility of up to $12 million. The investor is Alumina Partners, a U.S. private equity firm. The funds raised will strengthen the company's balance sheet and allow it to pursue lithium exploration activities at the Zoro project in Manitoba and Hidden Lake project in the Northwest Territories. Alumina Managing Member Adi Nahmani said the deal supports Far Resources' growth plan to "better reflect the mission critical role that lithium plays in the global mobile technology market."
4 min read · 20 February 2019
Waterton Global Resource Management has published a presentation detailing a new path for Hudbay Minerals Inc (TSX, NYSE: HBM) to help it realize its potential. Waterton, which holds a 12 percent stake in the Toronto-based mining company, also renewed its call to fellow shareholders to elect an independent board and support a change in top management. The Canadian mining private equity firm nominated Peter Kukielski as CEO and Richard Nesbitt as chairman. Waterton said the proposed changes in Hudbay's strategy and leadership could result in an 140 percent increase in share price.
4 min read · 20 February 2019
National Technical Systems Inc (NTS) has acquired Sci-Lab Materials Testing Inc, a Kitchener, Ontario-based provider of materials testing, product validation and environmental stress and durability services. Terms weren't released. Founded in 1990 by President Richard Isaacs, Sci-Lab serves the automotive, military, aerospace and industrial and consumer electronics sectors. NTS, an Anaheim, California-based provider of testing, inspection and certification solutions, said the deal provides it with an Ontario presence, additional capabilities and key customer relationships. NTS was acquired in 2013 by U.S. private equity firm Aurora Capital Partners.
3 min read · 20 February 2019
Parex has acquired CTM Coatings Inc, a Montréal-based specialist in flooring compound systems. No financial terms were disclosed. CTM Managing Director Michael delle Donne and his team will join Parex. Parex, a Paris-based provider of specialty dry-mix solutions to the construction industry, said the deal expands its activity in North America into the flooring technical solutions segment. It also facilitates the company's entry into Canada. Parex was acquired in 2014 by CVC Capital Partners, a U.K. private equity firm.
2 min read · 20 February 2019
Momentum Technologies, a Québec City-based information technology consulting services provider specializing in database technologies, has raised $2 million in mezzanine financing from BDC Capital. BDC invested through its growth and transition capital group. The funds raised will support the company's global growth strategy and help prepare it for a management succession facilitated through stock buybacks. A portion of the proceeds are currently being used to develop a new version of Manitou, a professional services automation solution manufactured by Momentum. Established in 2003, Momentum is led by President Michel Ganache.
3 min read · 20 February 2019
Vancouver-based women’s fashion brand Aritzia Inc (TSX: ATZ) said U.S. private equity firm Berkshire Partners will sell its remaining stake in the company as a result of a secondary offering and share buyback. Berkshire and other shareholders agreed to sell subordinate voting shares for $16.90 per unit, which is expected to generate about $330 million in proceeds. Aritzia also agreed to repurchase shares from Berkshire at the same price. Proceeds going to the investor are expected to total about $107 million. Berkshire acquired Aritzia in 2005. The company went public in Canada in 2016, raising $460 million.
7 min read · 20 February 2019
Tilray Inc (Nasdaq: TLRY) has agreed to acquire FHF Holdings Ltd, a Winnipeg-based hemp food manufacturer that operates as Manitoba Harvest. Tilray agreed to pay up to $419 million in cash and stock, pending the achievement of certain milestones after the deal's close. The main seller is Compass Group, a U.S. private equity firm. Compass acquired Manitoba Harvest in 2015 for $132 million. Tilray, a Nanaimo, British Columbia-based cannabis business, said the deal will expand its product portfolio into natural foods and tap expertise in working with cannabinoids. Last year, Tilray raised about US$153 million in an initial public offering. It continues to be majority owned by U.S. cannabis private equity firm Privateer Holdings.
5 min read · 20 February 2019
NFP Corp has acquired Mass Insurance Brokers Ltd and Easyway Insurance Brokers Inc (Mass), together a Markham, Ontario-based property and casualty (P&C) insurance brokerage. Terms weren't released for the deal, which closed in December. Mass President and CEO Greg Dunn will join NFP as a managing director overseeing personal lines and small commercial lines. NFP, a New York-based insurance broker and consulting business, said the acquisition expands its P&C offerings across Canada. Established in 1998, NFP was acquired in 2013 by U.S. private equity firm Madison Dearborn Partners (MDP) for about US$1.3 billion. The company's other backers include HPS Investment Partners.
3 min read · 19 February 2019
Novacap aims to raise more than $650 million for its fifth mid-market industries fund by expanding its global base of limited partners. The Montréal private equity firm began raising Novacap Industries V in late 2018, Chairman and Managing Partner Jacques Foisy told PE Hub Canada. He expects to see an initial close by the spring and completion later this year. If successful, Fund V would secure 38 percent more in capital than its predecessor, which raised $470 million in 2016. More than $400 million has already been soft-circled for Fund V, primarily from returning investors, Foisy said.
3 min read · 15 February 2019
