Private Equity
Fonds de solidarité FTQ has invested $5 million in Terranova Worldwide Corp, a Laval, Québec-based provider of information security awareness programs, such as online training and Phishing simulations. Founded in 2001, Terranova offers some 90 courses on information security awareness to large and mid-sized businesses and other clients. Owned and led by President Lise Lapointe, the company will use the funds raised to support its growth strategy, which includes investing in marketing and developing new platforms.
2 min read · 20 February 2018
The financing backing U.S. private equity firm Blackstone Group’s acquisition of a majority stake in Thomson Reuters’ Financial and Risk (F&R) unit totals more than US$15 billion, banking sources told Reuters. The deal, which consists of a US$14 billion loan and bond financing, also includes a US$1 billion payment-in-kind (PIK) note at the holding company level. The US$14 billion financing is currently being marketed to other banks by the three lead banks Bank of America Merrill Lynch, Citigroup and JP Morgan. The US$1 billion PIK note has already been placed. “I think it’s a great business, it’s a good solid subscription model with sticky customers and high cash conversion, which is what you need for good LBOs,” a syndicate head said. Blackstone will acquire a 55 percent stake in the F&R business in a deal valued at US$20 billion, with Thomson Reuters, controlled by Canada's Thomson family, retaining a 45 percent holding.
3 min read · 16 February 2018
Hub International Ltd, a portfolio company of U.S. private equity firm Hellman & Friedman (H&F), has acquired the shares of Pointbreak Consulting Group Ltd, a Burnaby, British Columbia-based provider of employee benefits and pension consulting and advisory services. No financial terms were released. Pointbreak Principal and CEO Kevin Jeffrey will join Hub International TOS Ltd as a result. Hub, a Chicago-based insurance brokerage, was bought by H&F for about US$4.4 billion in October 2013.
2 min read · 16 February 2018
Xpertdoc Technologies Inc has bought the assets of XperiDo, a document generation software business, through a share purchase agreement. No financial terms were disclosed for the deal, which saw XperiDo sold by its Belgian developer and marketer Invenso Bvba. Xpertdoc, a Terrebonne, Québec-based document and customer communication solutions specialist, said the acquisition will expand its reach into global markets. Last year, Xpertdoc raised funding from BDC Capital‘s Growth and Transition Capital and Capital régional et coopératif Desjardins.
3 min read · 15 February 2018
Canadian private equity firm Onex Corp has promoted Tate Abols to managing director in the investor relations and fund development team. Abols previously served as a principal with the firm's investment team, focusing on deals in healthcare, building products and business services. He joined Onex in 2006 from the mergers and acquisitions group at RBC Capital Markets. Onex wrapped up its fifth flagship fund, Onex Partners V, last November, securing US$7.15 billion in committed capital.
2 min read · 15 February 2018
Thomson Reuters Corp Chairman David Thomson urged the company’s board of directors to seek better terms for its US$17 billion sale of a large chunk of its business to U.S. private equity firm Blackstone Group LP, the Wall Street Journal reported this week, citing people close to the deal. Blackstone last month agreed to buy a majority stake in Thomson Reuters’ Financial & Risk division in a US$20 million deal. Executives with Woodbridge Co Ltd, a private Toronto firm that holds the Thomson family’s majority stake in Thomson Reuters, disagreed with David Thomson and supported the deal, the newspaper said. The Thomson family owns 64 percent of Thomson Reuters through Woodbridge. Thomson eventually voted in favour of the deal, but only after telling other directors he was concerned they had not sought a higher price or considered other potential buyers for the business, according to the newspaper.
2 min read · 15 February 2018
Canadian pension fund OMERS said this week it had raised its stake in Thames Water, Britain's largest water company, to around 32 percent, shrugging off worries about renationalisation, Reuters reported. The infrastructure investment manager of OMERS (Ontario Municipal Employees Retirement System), said it had bought another four percent of Kemble Water Holdings Ltd, the ultimate holding company of Thames Water. The financial details of the deal, which is expected to close later this year, were not disclosed. OMERS initially agreed to invest in Thames Water in March 2017, alongside the infrastructure investing arm of Kuwait Investment Authority. The minority stake was bought from Macquarie.
2 min read · 15 February 2018
BDC Capital and Export Development Canada (EDC) have provided $5 million in mezzanine financing to GSM Project, a Montréal multidisciplinary designer and producer of visitor experiences. Founded in 1958, GSM partners with diverse clients, such as cultural institutions, consumer brands, real estate developers and governments. Led by CEO Annie Derome, the company plans to use the loan's proceeds to support its global growth and prepare for upcoming opportunities in the Middle East and Eastern Asia. BDC invested through its Growth and Transition Capital division. GSM is also a portfolio investment of XPND Capital.
3 min read · 15 February 2018
Canadian private equity firm Novacap has acquired an interest in Mailhot Industries, a Saint-Jacques, Québec-based maker of hydraulic cylinders. No financial terms were disclosed. Established in 1956 by Gilles Mailhot, Mailhot produces a complete line of single-stage and telescopic hydraulic cylinders used in a wide range of applications. President and CEO Charles Massicotte will continue in that role and remain a shareholder. Novacap Senior Partner Frédérick Perrault said the partnership will support Mailhot's growth to "become the North American leader in its industry segment" by exploring strategic opportunities in new markets.
3 min read · 15 February 2018
U.S. alternative investment firm Oaktree Capital Management has closed its acquisition of Napec Inc (TSX: NPC), a Drummondville, Québec-based provider of construction and maintenance services to the public utility and heavy industrial markets. The previously announced deal, valued at $320 million, was supported by Fonds de solidarité FTQ, the company’s largest shareholder. As a result, Napec will be de-listed on or about February 16. Founded in 1978, Napec's Canadian and U.S. operational affiliates are, respectively, Thirau Inc and Riggs Distler & Co Inc.
3 min read · 14 February 2018
