Private Equity
Owen & Co Ltd, which operates in Canada primarily under the Kingsdown brand, has acquired Zedbed Inc, a Shawinigan, Québec-based manufacturer of eco-friendly memory foam mattresses, motion bases, and sleep products. No financial terms were disclosed. Kingsdown, a Toronto-based mattress maker, said the deal is part of an "aggressive growth plan" to increase market penetration and broaden the company's luxury sleep product offerings throughout North America. Founded in 1904, Kingsdown was acquired last year by the industries group of Canadian private equity firm Novacap.
4 min read · 12 February 2018
GFL Environmental Inc has agreed to acquire the parent of Deep Foundations Contractors Inc and affiliates, a Stouffville, Ontario-based specialist in project foundation piling and shoring. No financial terms were disclosed for the deal, which is expected to close in the second quarter. GFL, a Toronto-based environmental services business, said the buy will help grow the Canadian footprint of its infrastructure and soil remediation unit. The company, backed by HPS Investment Partners, Macquarie Group and Hawthorn Equity Partners, is reportedly planning the launch of a $1-billion initial public offering in 2018.
2 min read · 09 February 2018
Canadian pet-focused merchant bank Dane Creek Capital Corp has acquired 100 percent of Pets4Life, a St. Thomas, Ontario-based maker of gourmet frozen raw pet food for dogs and cats. No financial terms were released for the deal, which closed last month. The sellers were Glenn and Sherry Forrester, who have owned and operated the business since 2010. They will continue in their roles at Pets4Life. Dane Creek said the deal is its second in the frozen raw space and one of several planned opportunities in 2018. Dane Creek also announced a previously announced investment in Totally Raw Natural Dog Food Inc has been cancelled.
3 min read · 08 February 2018
Québec's public pension fund this week said the expected cost of building one of the world’s biggest light rail systems in Montréal had risen for a second time and was now $800 million above its initial forecast, Reuters reported. Caisse de dépôt et placement du Québec also said a consortium led by SNC Lavalin Group Inc had won a contract worth around $5 billion to provide engineering, procurement and construction on the project. A consortium led by Alstom and including SNC Lavalin will provide rolling stock and systems through a contract worth more than $1 billion. The Caisse is both financing and overseeing the construction of the 67-kilometre public transit system. It will own and operate the system once it has been built.
2 min read · 08 February 2018
BlackRock Inc plans to raise about US$10 billion as part of a new business that would take direct stakes in companies, a source told Reuters. A multibillion-dollar fund could put the world’s largest asset manager in more direct competition with the likes of Berkshire Hathaway Inc’s Warren Buffett and private equity firms, including Blackstone Group LP, from which it was initially spun out. The new effort is being chaired by Mark Wiseman, who BlackRock hired in 2016 from the Canada Pension Plan Investment Board, the source said. Day-to-day management is being led by André Bourbonnais, the former CEO of Public Sector Pension Investment Board (PSP Investments).
2 min read · 08 February 2018
Hub International Ltd, a portfolio company of U.S. private equity firm Hellman & Friedman (H&F), has acquired the shares of Kindersley, Saskatchewan-based Kindersley Insurance Ltd, a provider of insurance solutions for the agriculture, oil field and trucking industries. No financial terms were disclosed. Hub, a global insurance brokerage with significant operations in Canada, was bought by H&F for about US$4.4 billion in October 2013. Hub is headquartered in Chicago.
2 min read · 08 February 2018
Alberta Investment Management Corp (AIMCo) has agreed to acquire a 49 percent interest in two Pincher Creek, Alberta wind energy projects through a partnership with the U.S. affiliate of Italy's Enel SpA. AIMCo will acquire the stake in Castle Rock Ridge II Wind Farm, a 30.6 megawatt expansion of a facility owned by Enel, and Riverview Wind Farm, a 115 megawatt greenfield project adjacent to the former site. No financial terms were disclosed. Project construction and commercial operation are expected in 2019. Enel's U.S. affiliate will retain majority ownership of the wind projects and manage them with the deal's close.
4 min read · 08 February 2018
U.S. private equity firm New Heritage Capital has made an investment in Flying Colours Corp, a Peterborough, Ontario-based aviation refurbishment, completion, and maintenance, repair and overhaul (MRO) business. No financial terms were disclosed for the deal, which gave New Heritage a minority stake. It will support Flying Colours' growth and help the company realize high-value projects, such as expanding service lines, infrastructure development, and building additional hangars. Flying Colours, a family-owned business led by President and CEO John Gillespie, has facilities in North America and Singapore. It was established in 1989.
3 min read · 08 February 2018
Canadian oil sands producer MEG Energy Corp said this week it had agreed to sell some pipeline and storage assets in Alberta to Wolf Midstream Inc for $1.61 billion to pay down debt and fund its flagship project in Athabasca, Reuters reported. MEG said it would sell its 50 per cent interest in the Access Pipeline for $1.4 billion and its full interest in the 900,000-barrel Stonefell oil storage facility for $210 million. Wolf Midstream, which formed a partnership with Canada Pension Plan Investment Board in 2015, said in a release that the acquisition will be funded by a CPPIB investment of up to $800 million and third-party debt financing. The deal gives the Calgary midstream company 100 percent ownership of the Access Pipeline.
2 min read · 08 February 2018
The U.S. affiliate of BluEarth Renewables LP has acquired a majority interest in two operating wind facilities in Meeker County, Minnesota. The company bought an 80 percent stake in Adams Wind Generations LLC and Danielson Wind Farms LLC, the respective owners of the 19.8 megawatts Adams Wind Farm and the 19.8 megawatts Danielson Wind Farm. No financial terms were released. The remaining interest is held by local partners. BluEarth, a Calgary-based renewable power producer, said the deal marks its first wind investment in the United States. BluEarth is majority owned by Ontario Teachers’ Pension Plan.
3 min read · 08 February 2018
