Private Equity
STEP Energy Services Ltd (TSX: STEP) has agreed to acquire the issued and outstanding capital stock of Tucker Energy Services Holdings Inc, a Houston-based provider of fracturing and completion solutions to the U.S. oil and gas industry. The deal has a total cash consideration of about $350 million (US$275 million). STEP, a Calgary-based oilfield service company, said the acquisition will give it strategic entry into the U.S. fracturing market in key high-growth basins. It will fund the buy with cash, credit facilities, and $50 million to be raised through an equity offering. STEP, which went public last year, is backed by Canadian energy private equity firm ARC Financial Corp.
10 min read · 23 February 2018
The real estate arm of Canada’s second-largest pension fund manager wants to “more than double” the $800 million (US$631 million) it has already committed to investments in India in the short term, Reuters reported. Ivanhoé Cambridge, the real estate unit of Caisse de dépôt et placement du Québec, wants to grow its logistics and residential investments, Ivanhoe President Daniel Fournier said in an interview, although he did not specify an exact time frame. In a recent estimate by real estate services firm JLL, private equity pouring into Indian real estate is expected to drive nearly US$60 billion in investments between 2017 and 2026.
2 min read · 22 February 2018
Cobalt 27 Capital Corp (TSX-V: KBLT) has acquired a 1.75 percent net smelter return royalty on all future nickel and cobalt production from the Dumont project in Québec. The deal is valued at US$70 million. The Dumont project is jointly owned by RNC Minerals Corp and Waterton Global Resource Management, a Canadian mining private equity firm. Production, which will turn out materials used in electric vehicle and grid storage batteries, is expected to begin in 2020. Cobalt 27, a Toronto cobalt investor backed by Swiss mining private equity firm Pala Investments, said it is negotiating additional cobalt streaming and royalty deals.
6 min read · 22 February 2018
Canadian Solar Inc (NASDAQ: CSIQ) has sold a 142 megawatt peak solar portfolio to an affiliate of Greencoat Capital, a U.K. wind infrastructure, solar infrastructure and private equity firm. The portfolio, consisting of 24 operational solar power plants located across England, Wales and Scotland, is valued at about US$267.7 million, net of distributions. The 24 plants will generate about 142,000 megawatt hours of energy annually, sufficient for about 46,000 British households. Canadian Solar, a Guelph, Ontario-based solar power company, will provide operations and maintenance services.
3 min read · 22 February 2018
GFL Environmental Inc, a Toronto-based environmental services company, said it plans to commence a private offering of US$400 million in senior unsecured notes. The company will use the proceeds for repayment of outstanding borrowings under its senior secured revolving credit facility and other priorities, including financing acquisitions and organic growth initiatives. GFL, which is backed by HPS Investment Partners, Macquarie Group and Hawthorn Equity Partners, is reportedly preparing for a $1-billion initial public offering this year.
3 min read · 21 February 2018
Canadian private equity firm Penfund has invested $55 million in CBI Health Group, a Toronto-based provider of outpatient rehabilitation and home health services. The investment was the lead order for a new $70 million subordinated credit facility to support a dividend recapitalization of CBI. Penfund also acted as sole underwriter and agent of the facility. CBI, which operates more than 250 facilities across Canada, is a portfolio company of OMERS Private Equity (OPE). OPE acquired it in 2011 from Clearspring Capital Partners. Penfund, a junior capital provider to mid-market companies, is currently investing from Penfund Capital Fund V, which raised $724 million in 2016.
2 min read · 21 February 2018
Bombardier should be “on alert” for merger opportunities that will enable its transportation unit to compete with larger rivals in an industry that is consolidating to help reduce costs, the CEO of its biggest independent shareholder said this week. “I think, in an industry that’s consolidating to the degree that it is and given the scale issues associated with the size of the Chinese presence in that industry, the company needs to be always alert to M&A opportunities,” Caisse de dépôt et placement du Québec's Michael Sabia told Reuters and other reporters. Germany’s Siemens AG last year opted to merge its rail business with France’s Alstom SA instead of Bombardier’s rail unit, leaving Bombardier facing a challenge to compete.
3 min read · 21 February 2018
Accedian, a Montréal-based end-to-end network performance company, has acquired Performance Vision, a French provider of network and application performance management solutions. No financial terms were released. Accedian said the deal unifies capabilities that are typically distributed in different products and will support its plans to expand into new markets and business segments in 2018. Founded in 2005 by CEO Patrick Ostiguy, Accedian last year secured a majority investment from Bridge Growth Partners, a U.S. private equity firm. The company was previously venture-backed.
4 min read · 21 February 2018
Fairfax India Holdings Corp, a vehicle launched in 2014 to make private equity and other investments in India, has proposed to acquire 51 percent of the share capital of the Catholic Syrian Bank Ltd, a Thrissur, India-based full-service bank with some 430 branches. Fairfax agreed to pay INR 140 per share for the stake, or about US$186 million in total according to Reuters. Fairfax India is an affiliate of Fairfax Financial Holdings Ltd, a Toronto-based holding company.
2 min read · 20 February 2018
TransAlta Renewables Inc (TSX: RNW) has agreed to acquire two wind development projects in New Hampshire and Pennsylvania, reflecting 29 megawatts and 90 megawatts, respectively. The total cost of the projects is about US$240 million, of which about 70 percent will be funded in 2018 and the rest in 2019. Commercial operation is expected in 2019's second half. TransAlta, a Calgary-based renewable power producer, said the deal provides asset and geographic diversification. TransAlta is backed by Alberta Investment Management Corp (AIMCo). AIMCo invested $200 million in the business in 2015.
3 min read · 20 February 2018
