Private Equity
Canaccord Genuity Growth Corp (NEO: CGGC.UN) has agreed to negotiate a merger with Columbia Care LLC, a New York-based provider of medical cannabis products and services. As part of the negotiation, the parties have agreed that CGGC, a Canadian special purpose acquisition corporation (SPAC), will be valued at $60.7 million, while Columbia Care will be valued at US$1.35 billion. Founded in 2012, Columbia Care holds 33 licenses in 13 states and has a portfolio of more than 60 dispensaries and 16 cultivation-manufacturing facilities. CGGC is managed by an affiliate of Canaccord Genuity Group Inc.
6 min read · 18 October 2018
GWL Realty Advisors US Inc (GWLRA US), an affiliate of Winnipeg-based financial services holding company Great-West Lifeco, has agreed to acquire the real estate private equity platform of Guggenheim Investments. Terms weren't released for the deal, which is expected to close in Q4 2018. Power Corp of Canada's Great-West said the acquisition of Guggenheim Real Estate LLC (GRE) will enhance its investment platform in the United States. GRE will be combined with Denver, Colorado-based EverWest Real Estate Investors, which was acquired by GWLRA US earlier this year.
3 min read · 18 October 2018
With competition for quality assets remaining strong in Canadian M&A markets, private equity funds face challenges in deploying unfunded capital and the volume of sponsor-to-sponsor deals continues to rise. In a PE Hub Canada feature article, Torys LLP Partners Guy Berman, Laurie Duke and Stefan Stauder and Associate Brett Saulnier note that sponsor-to-sponsor deals generally move more quickly and with more intensity than transactions involving a strategic buyer and/or seller. They discuss a few of the unique dynamics of these deals as well as several factors that are key to ensuring a smooth and successful process.
6 min read · 18 October 2018
U.S. private equity giant Blackstone Group has quit a takeover battle for Australian office-block owner Investa Office Fund after it was gazumped by Canadian landlord Oxford Properties Group’s A$3.35 billion (US$2.4 billion) bid, Reuters reported. Blackstone told Investa it would not match the offer, all but handing the sought-after target to Oxford as office rents boom, especially in Sydney where Investa’s 20 towers are concentrated. Oxford’s offer will be voted on by shareholders at a meeting to be scheduled in December. Oxford invests in and manages real estate assets on behalf of the Ontario Municipal Employees Retirement System (OMERS).
3 min read · 18 October 2018
Canadian private equity firm Onex Corp has acquired a 42 percent interest in Ryan LLC, a Dallas-based tax services and software provider. Onex paid US$317 million for the stake, which values the company at US$1.1 billion. Founded in 1991 by Chairman and CEO Brint Ryan, Ryan offers a integrated suite of federal, state, local and international tax services, including tax recovery, consulting, advocacy, compliance and technology services. It serves more than 14,000 clients in over 50 countries. Last year, Onex closed its fifth flagship fund, Onex Partners V, raising US$7.15 billion.
4 min read · 17 October 2018
Canadian long-term private equity firm Altas Partners has agreed to acquire a minority stake in Hub International Ltd, a Chicago-based insurance brokerage. The deal, expected to close later this year, implies an enterprise value for Hub of more than US$10 billion. U.S. private equity firm Hellman & Friedman (H&F), which acquired Hub in 2013 for about US$4.4 billion, will remain the company's largest investor. The management team will also continue to hold an equity position. Hub was established in 1998 with the merger of 11 Canadian insurance brokerages. Altas Managing Partner Scott Werry said his firm will work with Hub and H&F to support the company's "numerous growth opportunities."
4 min read · 17 October 2018
Caisse de dépôt et placement du Québec has increased its interest in Azure Power Global Ltd, a New Delhi, India-based solar power producer, to 40 percent. The enhanced stake was the result of a US$100 million ($130 million) investment by the Caisse, bringing its total commitment to US$240 million ($310 million). Established in 2008, Azure Power has a pan-Indian portfolio of more than three gigawatts spread across 23 states. Emmanuel Jaclot, executive vice president, infrastructure, at the Caisse, said the additional investment reflects the pension system's view of India's solar power sector as a priority market.
3 min read · 17 October 2018
There’s no question that it’s a sellers’ market. With unprecedented levels of dry powder and debt available for investment, sellers are not only able to garner high valuations, they are also more carefully reviewing management incentives being put forth by potential private equity buyers. PE firms need to ensure they are incentivizing management teams correctly for a number of reasons. In a PE Hub Canada feature article, Lynne Lacoursière, a partner at Osler, Hoskin & Harcourt LLP, spells out those reasons and discusses the steps PE firms should take to settle compensation as part of a successful transaction.
6 min read · 17 October 2018
U.S. hedge fund Livermore Partners is calling for an overhaul of the board at Detour Gold Corp and a strategic review, becoming the second activist to target the Canadian mining company, Reuters reported. Livermore sent a letter to Detour this week, saying the board has failed its shareholders on “numerous governance and operational matters.” The move comes after Paulson & Co asked for Detour’s entire board to be replaced and demanded a formal process to evaluate alternatives. Livermore Managing Director David Neuhauser said Detour needed to a hire a global investment bank to evaluate all strategic options, including a sale or a joint venture with a partner, such as a Chinese miner.
2 min read · 16 October 2018
Cott Corp (TSX: BCB, NYSE: COT) has acquired The Mountain Valley Spring Co, a Hot Springs, Arkansas-based producer and deliverer of bottled spring and sparkling water, for $78.5 million in cash. The seller was Great Range Capital, a U.S. private equity firm. Great Range invested in Mountain Valley in 2014. Cott, a Toronto-based water, coffee, tea, extracts and filtration service company, said the purchase will help build out its water solutions portfolio. Cott is currently pursuing acquisitions in the water and coffee segments.
3 min read · 16 October 2018
