Private Equity
Calgary-based oil and gas company Strath Resources Ltd has agreed to acquire energy assets held by Paramount Resources Ltd (TSX: POU) in the Resthaven/Jayar area of Alberta's Kakwa region. The assets, which consist of oil and gas properties and related infrastructure, are being sold for $340 million. Strath will pay $170 million in cash, funded entirely by its majority investor, Canadian energy private equity firm Waterous Energy Fund. The rest will be paid in common shares. With the deal's closing, expected in July, Paramount, a Calgary-based liquids-focused energy company, will own a 15.6 percent interest in Strath. Founded last year, Strath is led by President and CEO Steve Fagan.
3 min read · 15 June 2018
The board of directors of Calgary-based oil and gas company Iron Bridge Resources Inc (TSX: IBR) has urged shareholders to reject an unsolicited acquisition offer from Velvet Energy Ltd. Last month, Velvet proposed to acquire all of Iron Bridge's issued and outstanding common shares in a deal that values the company at about $120 million. Iron Bridge said shareholders owning about 36 percent of shares will not support the offer, which will transfer "substantial upside" from Montney Oil play assets to Velvet. Calgary's Velvet is backed by Warburg Pincus, Trilantic Capital Partners, 1901 Partners Management and Canada Pension Plan Investment Board.
10 min read · 14 June 2018
CVC Capital Partners has agreed to sell its interest in the Delachaux Group, a French industrial and manufacturing company focused on rail infrastructure, energy and data management systems, and chronium metal. The buyers are Caisse de dépôt et placement du Québec and the Delachaux family. No financial terms were disclosed. CVC, a European private equity firm, took Delachaux Group private in 2011 in partnership with the founding family. The company's sale will result in the suspension of a planned initial public offering, initiated in May 2018, and consolidate the Delachaux family's majority ownership. Delachaux Group was established in 1902.
4 min read · 14 June 2018
CentriLogic, a Toronto-based provider of managed information technology solutions, has secured an investment from TriSpan Opportunities Fund, managed by U.K. private equity firm TriSpan, and Long Point Capital, a U.S. private equity firm. No financial terms were released. Established in 2007 and led by President and CEO Robert Offley, CentriLogic provides end-to-end managed hosting, private network, and application management solutions to mid- and large-sized enterprises. The partnership with TriSpan and Long Point is intended to support the company's global growth both organically and through acquisitions.
3 min read · 13 June 2018
Beauty-products brand Marc Anthony, backed by U.S. private equity firm TA Associates, has priced its recently filed initial public offering in Canada. The Toronto company expects to raise about $126 million of treasury proceeds by selling shares at $14 to $16 per unit. It also expects to secure about $116 million to $132 million in secondary proceeds. The greenshoe option, if fully exercised, will increase secondary proceeds, bringing the IPO's bring total to about $278 million. Marc Anthony is one of five Canadian PE-backed companies to announce or complete an IPO since January.
3 min read · 13 June 2018
Canadian utility AltaGas Ltd has agreed to sell a 35 percent stake in three hydroelectric projects in Northwest British Columbia for $922 million to help fund its acquisition of U.S.-based WGL Holdings Inc, Reuters reported. The sale to a joint venture owned by Axium Infrastructure, a Canadian infrastructure investment firm, and Manulife Financial Corp is part of a plan to raise $2 billion of the $8.4 billion WGL deal. AltaGas, which will remain the majority holder of the projects, said it expected the deal to close this month. The projects include the 195-megawatt Forrest Kerr Hydroelectric Facility, the 16-megawatt Volcano Creek Hydroelectric Facility, and the 66-megawatt McLymont Creek Hydroelectric Facility.
1 min read · 13 June 2018
Brookfield Renewable Partners has acquired additional shares in TerraForm Power Inc (Nasdaq: TERP), a U.S. owner and operator of a renewable power portfolio including solar and wind assets. The buy, achieved through a US$650 million private placement, increased Brookfield's interest in the company to 65 percent from 51 percent. The proceeds will be used to support TerraForm’s acquisition of Saeta Yield, a Spanish renewable energy company. The deal, announced in February, is valued at US$1.2 billion. Brookfield Renewable, an affiliate of Brookfield Asset Management, bought TerraForm last year for US$$656 million.
3 min read · 12 June 2018
Public Sector Pension Investment Board (PSP Investments) earned a total portfolio net return of 9.8 percent in its fiscal 2018 as well as a five-year annualized net return of 10.5 percent. Both returns are above their benchmarks. This performance helped increase the Montréal-based pension fund's total net assets to $153 billion, up 12.9 percent from the prior year's $135.6 billion. PSP's private equity investments generated a one-year net return of 12.9 percent in fiscal 2018, while infrastructure investments accounted for a net return of 19.3 percent. Neil Cunningham was appointed PSP's new president and CEO in February, replacing André Bourbonnais.
6 min read · 12 June 2018
Fengate Real Asset Investments has entered into a US$100 million equity commitment and co-development partnership with PowerFin Partners, an Austin, Texas-based solar power developer and operator. The deal includes as a seed investment Fengate's acquisition of a 9.1 megawatt DC portfolio of operating solar projects in Texas. It will also see Fengate invest in the development and construction of PowerFin’s pipeline of projects over multiple years. Fengate, a Toronto-based investor in infrastructure, private equity and real estate, said the clean-energy partnership transaction is its third in North America and second this year.
4 min read · 12 June 2018
Toronto-based retail business Canadian Tire Corp Ltd (TSX: CTC.A, CTC) has priced a private placement offering to raise $650 million of unsecured medium-term notes. The offering is expected to close on or about July 3. Canadian Tire said it will use the proceeds partly to help finance its acquisition of Helly Hansen, a Norwegian producer of men’s and women’s sports and work apparel and gear. Announced last month, the deal is valued at $985 million, not including debt. The seller is Ontario Teachers’ Pension Plan, Helly Hansen's majority owner since 2012.
4 min read · 12 June 2018
