Private Equity
Canaccord Genuity Acquisition Corp (TSX: CGAC.UN, CGAC.WT), a Canadian special purpose acquisition corporation (SPAC), has agreed to merge with Spark Power Corp, an Oakville, Ontario-based electrical power services and solutions company. No financial terms were disclosed. Spark serves more than 4,500 industrial, commercial, institutional, renewable and agricultural customers, as well as utility markets, including municipalities, universities, schools and hospitals across North America. The deal will see the company continue to be led by Co-CEOs Jason Sparaga and Andrew Clark. Spark is the qualifying transaction of CGAC, which completed its IPO last year.
4 min read · 12 June 2018
Brazil’s Vale this week unveiled a US$690 million financing to expand a Canadian nickel mine, agreeing to sell unmined cobalt from Voisey’s Bay as a booming electric vehicle market propels demand for the critical battery ingredient, Reuters reported. Vale said it would sell cobalt mined after 2021 as a by-product from the mine in the northern Labrador region to Wheaton Precious Metals Corp and Cobalt 27 Capital Corp in a so-called stream financing deal. Cobalt 27, a Toronto-based battery metals streaming and royalty company, is backed by Swiss mining private equity firm Pala Investments.
2 min read · 12 June 2018
Vertex Resource Group Ltd (TSX-V: VTX) has acquired the business of TSL Industries, a Kola, Manitoba-based provider of vacuum, hydro vac, fluid hauling, hot oiling and pressure truck services. No financial terms were released. TSL, established in 2001, serves the oil and gas industry as well as other sectors, such as utilities. Vertex, a Sherwood Park, Alberta-based environmental and industrial services provider, said the deal grows its service offering and presence in Manitoba. Vertex last year closed an $85.8 million qualifying transaction to go public with the backing of Canadian energy private equity firm 32 Degrees Capital.
2 min read · 11 June 2018
Clearwater Capital Management has urged AutoCanada Inc (TSX: ACQ), a Canadian automobile dealership group, to initiate a strategic review. In a letter addressed to the chairman, Roland Keiper, president of the Toronto-based hedge fund, expressed concern about AutoCanada's first quarter performance, a concern he says is held by other shareholders. He said AutoCanada's board should form a special committee to consider options that offer the "potential opportunity to sell at an attractive premium and avoid the risk of further operating performance risks." AutoCanada is based in Edmonton.
5 min read · 11 June 2018
Canadian pet-focused merchant bank Dane Creek Capital Corp has acquired Spring Meadows Natural Pet Food, a Saskatoon-based maker of frozen raw pet food for dogs and cats. No financial terms were disclosed for the all-cash deal. Founded in 2014 by Brett Flahr and Regan Sloboshan, Spring Meadows partners with local farmers to develop its product line for specialty retailers, primarily in Western Canada. Flahr will continue as the company's president. Spring Meadows is Dane Creek's fourth acquisition of a Canadian raw pet food manufacturer in the past 12 months. Earlier in 2018, the firm bought Naturawls Pet Products and Pets4Life.
4 min read · 11 June 2018
Davis-Standard LLC has acquired Brampton Engineering Inc, a Brampton, Ontario-based provider of multi-layer air-blown and water-quenched film systems, film winding, and other film production solutions. No financial terms were released. Established in 1973, Brampton is led by President and CEO Gary Hughes. Pawcatuck, Connecticut-based Davis-Standard is a manufacturer of plastic and rubber extrusion and converting systems. It was acquired in 2011 by ONCAP, the mid-market investment platform of Canadian private equity firm Onex Corp.
2 min read · 11 June 2018
Canadian private equity firm Onex Corp has hired Ted Larkin as a managing director. Larkin, who is based in the firm's Toronto headquarters, will be responsible for business and relationship development in Canada. Before joining Onex, he spent more than 30 years working in a range of senior roles at UBS Investment Bank, mostly recently as the managing director of the Toronto investment banking group. Last November, Onex closed its fifth flagship private equity fund, Onex Partners V, securing US$7.15 billion in committed capital.
2 min read · 11 June 2018
Canadian family office Walter Group of Companies has launched Walter Asset Management, a new North American private equity platform that will invest in small and mid-sized players in the asset management sector. The Montréal-based evergreen platform is expected to raise initial capital of $100 million, $40 million of which will be supplied by Walter Group. Sylvain Brosseau, the former head of Fiera Capital Corp, will lead Walter Asset Management. He will also commit capital. Walter Group, a sponsor of Walter Capital Partners, said the platform will help fill a key gap in the asset management space, which is currently undergoing consolidation.
3 min read · 11 June 2018
Business communications company Mitel Networks Corp (Nasdaq: MITL, TSX: MNW) has ended the “go-shop” period provided for in its acquisition agreement with an investor group led by Searchlight Capital Partners, a U.S. private equity firm. The company said it contacted 86 potential buyers during the “go-shop” period, but that no acquisition proposal was submitted. Ottawa-based Mitel in April announced the Searchlight-led group had agreed to buy 100 percent of its common shares for about $2.6 billion (US$2 billion), including debt. A shareholders meeting to vote on deal will be held on July 10.
4 min read · 08 June 2018
Canadian alternative assets investor Kensington Capital Partners has completed a US$85 million recapitalization of Kenona Industries LLC, a Grand Rapids, Michigan high-volume precision machining business. The deal was done by the Kensington Private Equity Fund in partnership with management and co-investors. Founded in 1988, Kenona serves the automotive industry. Its products were utilized in over 45 2017 automobile nameplates, and its components are in more than 6 million of the 17 million U.S. vehicles produced annually. Kensington Senior Vice President Martin Kent said his firm will work with management to continue Kenona's growth.
3 min read · 07 June 2018
