Private Equity
Aleafia Health Inc (TSX-V: ALEF), a Concord, Ontario-based medical cannabis cultivator and clinic operator, has agreed to receive a $10 million investment from Serruya Private Equity (SPE). The deal, expected to close in October, was announced with the formation of a joint venture (JV) that will support Aleafia's entry into the adult-use cannabis industry and related retail operations in Canada. Aleafia will hold a 51 percent interest in the JV, while SPE will hold 49 percent. The JV's initial launch will include more than 20 retail locations in Ontario and a plan to expand across Canada. SPE invests on behalf of Canada's Serruya family.
4 min read · 26 September 2018
The recent reshaping of indemnification norms in U.S. private M&A deals caused by the exponential growth and widespread acceptance of representations and warranties (R&W) insurance is the most significant shift in the North American market since the death of the financing in the mid-2000s. That's the view of Osler, Hoskin & Harcourt LLP Partners Michael Budabin McQuown, Marc Kushner and Chad Bayne and Associate Jillian Mulroy. In a PE Hub Canada feature article, they argue that for a growing number of dealmakers in Canada and the United States, the question regarding R&W insurance is when, not whether, to take the plunge.
10 min read · 26 September 2018
Northleaf Capital Partners has led a funding package to support the recapitalization and growth of BridgePoint Financial Services Inc, a Toronto-based provider of litigation financing solutions in Canada. Northleaf, a Canadian private-markets fund manager, acted as the sole lead arranger of a $50 million senior secured credit facility and a separate preferred equity investment, the value of which was not disclosed. Founded in 2005 by Principals Stephen Pauwels and John Rossos, BridgePoint provides customized litigation financing solutions to plaintiffs, lawyers and experts involved in advancing legal claims. The company reports financing more than 30,000 cases.
3 min read · 26 September 2018
Fengate Real Asset Investments has acquired the Heartland Petrochemical Complex’s central utility block (CUB) from Inter Pipeline Ltd (TSX: IPL), a Calgary-based energy infrastructure company. Terms weren't disclosed. The deal will see Inter Pipeline recover its development capital and Fengate assume responsibility for funding CUB construction. Capital costs are estimated at $600 million. CUB is a 102 megawatt natural gas-powered cogeneration facility capable of supplying Inter Pipeline with utilities for Heartland, a propane dehydrogenation and polypropylene plant. It is expected to be in service by mid-2021. Inter Pipeline will oversee CUB construction and operation.
3 min read · 25 September 2018
Gateway Casinos & Entertainment Ltd, a Vancouver-based gaming and entertainment company, has filed a draft registration with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO) of its common shares. The IPO, which has not yet been priced, is expected to commence following the SEC's review and subject to market and other conditions. Founded in 1992, Gateway operates 25 gaming properties with more than 280 tables, over 9,600 slots, 68 restaurants and bars and 272 hotel rooms. It recently expanded operations in Ontario. Gateway was acquired in 2010 by Canadian private equity firm Catalyst Capital Group, which restructured the business.
2 min read · 25 September 2018
Sustainable Power Group (sPower), a Salt Lake City, Utah-based owner and operator of U.S. solar and wind assets, has acquired the 55 megawatt direct current Idaho Solar 1 project. No financial terms were disclosed. Located in Kuna County, Idaho, and placed in service in 2016, the system will continue to operate and sell all output to Idaho Power Co. The acquisition is sPower's first since it was bought last year by AES Corp and Alberta Investment Management Corp (AIMCo) for US$853 million.
2 min read · 25 September 2018
Koios Beverage Corp, a Vancouver-based developer of beverage products, including cannabis-infused beverages, has secured a draw-down equity facility of up to $28 million. The investor is Alumina Partners, a U.S. private equity firm. Under the deal’s terms, Koios will be able to draw down capital as needed to support its North American growth strategy. Alumina Managing Member Adi Nahmani said cannabinoid beverages reflect the "most rapidly expanding and evolving markets" in the regulated cannabis space.
4 min read · 25 September 2018
Smart Employee Benefits Inc (TSX-V: SEB) has agreed to sell Paradigm Consulting Group Inc to Golden Opportunities Fund, a retail fund managed by Canadian private equity and venture capital firm Westcap Management. The deal, scheduled to close on November 30, includes a cash payment, cancellation of a $3 million preferred investment made by Golden Opportunities earlier in 2018, and a working capital adjustment. Mississauga, Ontario-based SEB is a provider of technology solutions and services for managing benefit and healthcare claims processing. It said it will retain a partnership with Regina-based Paradigm for deployment of SEB solutions and services in Saskatchewan and Manitoba.
2 min read · 25 September 2018
Shareholders of Enercare Inc (TSX: ECI), a Canadian home and commercial services and energy solutions provider, have voted in favour of the company's acquisition by Brookfield Infrastructure. The deal, announced in August, would see Brookfield acquire Enercare for $29 per share. It is valued at about $4.3 billion, including debt, and expected to close in Q4 2018. Based in Markham, Ontario, Enercare provides water heaters, water treatment, furnaces, air conditioners and other HVAC rental products, plumbing services, protection plans and related services. It serves about 1.6 million Canadian and U.S. customers annually.
3 min read · 24 September 2018
Digital Realty (NYSE: DLR ) has agreed to acquire Ascenty, a Brazilian data centre business, from U.S. private equity firm Great Hill Partners. The deal, expected to close in Q4 2018, is valued at about US$1.8 billion. Brookfield Infrastructure has agreed to commit half of the required initial equity investment, estimated at about US$613 million. As a result, Brookfield would secure a 49 percent stake in the entity that owns Ascenty. San Francisco-based Digital Realty said the acquisition will establish it as Latin America's leading data centre provider.
7 min read · 24 September 2018
