Private Equity
Swiss private equity firm Partners Group and Canadian pension fund manager OPTrust have agreed to buy a 50 percent control stake in Superior Pipeline Co, a U.S. midstream energy infrastructure company. The deal, which values the company at US$600 million, will see U.S. energy business Unit Corp (NYSE: UNT), the stake's seller, hold the remainder of the equity. Founded in 1996 and based in Tulsa, Oklahoma, Superior owns and operates three natural gas treatment plants, 13 processing plants, 22 active gathering systems, and about 1,455 miles of pipeline across the United States.
3 min read · 29 March 2018
ONCAP, the mid-market investment arm of Canadian private equity firm Onex Corp, has wrapped up its sale of Mavis Discount Tire, a Millwood, New York-based tire retailer and wholesaler. ONCAP, which acquired the company in 2014, earlier this year agreed to merge it with Express Oil Change & Tire Engineers, which is backed by Golden Gate Capital. ONCAP said it earned US$519 million in proceeds from a US$150 million investment in Mavis, resulting in a gross multiple of 3.8x in Canadian dollars (3.5x in U.S. dollars) and a 53 percent gross rate of return in Canadian dollars (48 percent in U.S. dollars).
2 min read · 29 March 2018
Canadian steelmaker Stelco Inc (TSX: STLC) said a syndicate of underwriters has agreed to buy $217.5 million of the company's common shares from U.S. private equity firm Bedrock Industries Group. The amount bought may increase with the exercise of the secondary bought deal offering's 15 percent greenshoe option. Bedrock, which closed a restructuring deal with Stelco last June, currently holds an interest of about 84.9 percent. With the offering's close next month, this interest will be reduced to about 73.7 percent or lower. Hamilton, Ontario-based Stelco went public in 2017, raising $230 million.
3 min read · 28 March 2018
Stratacache Capital, the investment arm of Stratacache Inc, has agreed to acquire X2O Media, a Canadian software developer of real-time visual communication solutions. No financial terms were released for the deal, which is expected to close this month. The seller was Belgium's Barco NV, which acquired X2O in 2014. Stratacahe, a Dayton, Ohio-based digital signage solutions provider, said the deal will allow the company to its expand its portfolio as well as support X2O's global growth. X2O will continue to operate from its Montréal headquarters.
3 min read · 28 March 2018
Calgary crude oil producer Cona Resources Ltd (TSX: CONA) has agreed to be taken private by Waterous Energy Fund, a Canadian energy private equity firm and the company’s majority investor. The deal, which finalizes an initial proposal disclosed earlier in March, will see Waterous acquire those Cona common shares it does not already hold for $2.55 per unit. All board members, excluding Waterous Managing Partner and CEO Adam Waterous, and certain executive officers have agreed to vote in favour. Cona shareholders will vote at a special meeting on or about May 18.
4 min read · 28 March 2018
Golden Leaf Holdings Ltd, a Toronto-based cannabis oil solutions company, has signed a letter of intent with BlackShire Capital Corp to launch a franchise retail model focused on the cannabis sector. Golden Leaf and BlackShire, a Canadian cannabis private equity firm, aim to roll out the model under the Chalice Farms brand across North America and internationally. As part of the proposed deal, BlackShire would provide an initial $25 million for a jointly-owned management company operating in Canada and the United States. BlackShire would hold an 80 percent stake. Founded in 2014, Golden Leaf is led by CEO William Simpson.
4 min read · 28 March 2018
Entertainment One (eOne) has acquired Round Room Entertainment, a New York-based live music production company. No financial terms were released. EOne, a Toronto-based entertainment content studio, said Round Room will join its global family of companies and expand its offering to artists and brands. Stephen Shaw, who founded Round Room in 2016, and Jonathan Linden will lead the affiliate. EOne is backed by Canada Pension Plan Investment Board (CPPIB). CPPIB bought a minority stake in 2015 from Marwyn Investment Management for $290 million.
3 min read · 28 March 2018
Roynat Equity Partners, Fonds de solidarité FTQ and Fonds régionaux de solidarité FTQ have together invested in Groupe Stageline Inc, a L'Assomption, Québec-based designer, maker, distributor and renter of mobile stages. No financial terms were disclosed for the deal, which was also backed by members of senior management. It will support the company's growth initiatives and internal succession from the founder, CEO Yvan Miron. The mobile stages of the 31-year old Stageline are used every year in more than 20,000 events in 48 countries. The Fonds has previously invested in the company, as has Caisse de dépôt et placement du Québec.
5 min read · 28 March 2018
Brookfield Property Partners LP’s latest bid to acquire the two-thirds of mall owner GGP Inc it does not already own low-balls the price of prime retail assets whose value has been obscured by e-commerce, analysts told Reuters. Brookfield’s existing 34 percent stake in GGP puts it in the driver’s seat because it only has to pay 65 cents on the dollar to match other offers, said Alex Goldfarb, a managing director at Sandler O’Neill + Partners LP. Another offer would have to replace the board and management, which Brookfield does not need to do, he said.
3 min read · 27 March 2018
McAfee Inc earlier this month acquired TunnelBear Inc, a Toronto-based virtual private network service provider. No financial terms were disclosed. TunnelBear was founded in 2011 by CEO Ryan Dochuk and CTO Daniel Kaldor. McAfee, a U.S. device-to-cloud cybersecurity company, said the acquisition represents a strategic investment in its consumer business. Last April, U.S. private equity firm TPG Capital acquired a majority stake in McAfee from Intel Corp, a deal that valued the former company at US$4.2 billion. Thoma Bravo joined as a minority investor.
3 min read · 27 March 2018
