Canada

Quad-C invests in IT staffing company S.i. Systems

U.S. mid-market private equity firm Quad-C Management has invested in S.i. Systems Ltd, a Calgary-based provider of information technology (IT) staffing in Canada. No financial terms were released for the deal, which will see S.i. Systems Founder and CEO Derek Bullen maintain an ownership position and continue to lead the business. Bullen said Quad-C will help accelerate his company's organic and acquisition-led growth. Established in 1994, S.i. Systems operates a web-based match-making solution to provide contract and permanent placements for IT professionals.

Serruya-backed Aleafia Health to acquire Emblem

Aleafia Health Inc (TSX-V: ALEF) has agreed to acquire Emblem Corp (TSX-V: EMC), a Toronto-based cannabis company, in an all-share deal valued at about $173.2 million. Upon completion, the transaction will see Aleafia and Emblem shareholders own about 59 percent and 41 percent of Aleafia, respectively. Aleafia is a Concord, Ontario-based medical cannabis cultivator and clinic operator. Its combination with Emblem is expected to create a medical cannabis network with access to 40 clinics and education centres. Last month, Serruya Private Equity invested $10 million in Aleafia to support its entry into the adult-use space and launch retail operations.

PE-owned Hub acquires employee benefits practice of Rise

Hub International Ltd has acquired the employee benefits practice of Rise People Inc, a Vancouver-based provider of human resources, payroll and benefits administration solutions. No financial terms were disclosed. Hub, a Chicago-based insurance brokerage, said the deal supports its Canadian employee benefits and pension consulting growth strategy. Last month, Canadian long-term private equity firm Altas Partners closed a minority investment in Hub, joining existing owner Hellman & Friedman.

Buffett profits as venture into Canadian mortgage business ends: Reuters

Warren Buffett is getting out of the Canadian mortgage business after a nifty trade that helped a company that had been on the ropes, Reuters reported. Buffett’s Berkshire Hathaway Inc is “substantially” exiting its stake in Home Capital Group Inc after selling shares back to the company, the mortgage lender and Buffett said. Berkshire bought a 20 percent stake in Home Capital last year and extended a $2 billion credit line after the company suffered a deposit exodus after being accused of, and then admitting to, concealing mortgage fraud. Berkshire could see a profit of more than 70 percent for the shares it bought for about $9.55 apiece and sold back at $16.50 per share.

InstarAGF acquires U.S. aviation infrastructure assets for $450 mln

InstarAGF Asset Management has acquired jet fuel pipeline and terminal facilities serving U.S. airports from Buckeye Partners LP (NYSE: BPL). Terms weren't disclosed; however, Buckeye, a U.S. oil logistics company, said in a statement that it received cash proceeds of US$450 million. InstarAGF, a Canadian investor in mid-market infrastructure and real assets, said the pipeline and terminal facilities will continue to be operated and maintained by a Buckeye affiliate. President and CEO Gregory Smith said the deal adds "critical, high quality aviation infrastructure assets with utility-like characteristics" to InstarAGF's portfolio.

PE-backed Vantage to buy 4Degrees Colocation for $259 mln

Vantage Data Centers has agreed to acquire 4Degrees Colocation, a data centre operator with facilities in Montréal and Québec City. The deal, expected to close in the weeks ahead, reflects a purchase price of about $259 million (US$200 million). The seller is Montréal-based communications company Québecor Inc (TSX: QBR). Vantage, a Santa Clara, California-based wholesale data centre provider, said the transaction will expand its North American presence to five markets. Last year, Public Sector Pension Investment Board (PSP Investments) partnered with Digital Bridge Holdings LLC and TIAA Investments to acquire Vantage from Silver Lake Partners.

Luxfer to buy Oaktree-owned Neo Performance for $824 mln

Luxfer Holdings PLC (NYSE: LXFR) has agreed to acquire Neo Performance Materials Inc (TSX: NEO), a Toronto-based maker of rare-earth and rare-metal-based functional materials used in advanced technologies. Luxfer agreed to pay about $824 million (US$612 million) in cash and stock. U.S. distressed investor Oaktree Capital Management, Neo's largest shareholder, agreed to support the deal, which is expected to close in Q2 2019. U.K.-based Luxfer said the acquisition accelerates its strategy to become a leading global manufacturer of highly-engineered advanced materials. Neo emerged in 2016 from the bankruptcy of Molycorp Inc. Oaktree took the company public earlier this year, raising $220 million.

NTT DATA acquires Sierra Systems from Golden Gate Capital

NTT DATA Services has closed its acquisition of Sierra Systems Group Inc, a Vancouver-based information technology services and management consulting provider. Terms weren't disclosed for the deal, which was announced in October. The acquired business will be led by Pat Kaiser, formerly COO of Sierra. The seller was an affiliate of U.S. private equity firm Golden Gate Capital, which acquired Sierra in 2007. NTT DATA, a U.S. technology services subsidiary of Japan's NTT DATA Corp, said the transaction will expand its presence and capabilities in Canada.

Graham Partners invests in food manufacturer Giraffe

U.S. private equity firm Graham Partners has invested in Giraffe Foods Inc, a Toronto-based maker of custom sauces, marinades, dips and dressings. Terms weren't disclosed for the deal, which saw Graham partner with the company's family owner-operators. Giraffe is led by CEO and Founding Partner Ari Powell. Established in 1997, Giraffe serves industrial food processors, retailers and food service providers across North America. Graham said it will support a growth plan that includes operational initiatives, geographic expansion and add-on acquisitions. Varagon Capital Partners served as administrative agent and lead arranger for a credit facility that backed the transaction.

PSP Investments to exit minority stake in France's Antelliq

Public Sector Pension Investment Board (PSP Investments) has agreed to sell its minority interest in Antelliq Corp, a Vitré, France-based provider of digital animal identification, traceability and monitoring solutions. The deal is part of a broader agreement to sell the company to Merck & Co for about 2.1 billion euros (US$2.4 billion). PSP acquired the stake in Antelliq, formerly Allflex Group, in 2016. The seller was BC Partners, which remained the controlling shareholder. BC Partners is also selling its interest. The transaction is expected to wrap up in the second quarter of 2019.