Private Equity
U.S. private equity firm Blackstone Group LP catapulted itself into the major leagues of Wall Street’s financial information industry this week with the acquisition of a majority stake in the Financial and Risk business of Thomson Reuters Corp, Reuters reported. The US$20 billion deal is Blackstone’s biggest bet since the financial crisis. Blackstone will acquire a 55 percent stake in a newly hived off F&R business, while Thomson Reuters will retain a 45 percent holding. Canada Pension Plan Investment Board and Singapore’s GIC will invest alongside Blackstone. The deal will give Thomson Reuters, controlled by Canada’s Thomson family, a formidable ally as it seeks to reinvigorate a business facing challenges from a shrinking and budget-conscious customer base.
5 min read · 30 January 2018
Canadian private investment firm Hillcore Group has acquired a portfolio of seniors living homes in New Brunswick from Atlantic Retirement Living Group. The deal, which closed at the end of 2017, reflected a purchase price of $70 million. The sellers were private owners-operators who have re-invested part of the sales proceeds back into the new venture as minority partners. The acquired portfolio consists of three retirement homes and three residential properties located in Dieppe and Moncton. Hillcore said it plans to expand the portfolio by acquiring similar seniors living assets across Atlantic Canada.
2 min read · 30 January 2018
Banks are lining up a jumbo leveraged financing of around US$13 billion to back U.S. private equity firm Blackstone Group’s potential acquisition of a 55 percent stake in the Financial and Risk business of Thomson Reuters Corp, banking sources told Reuters. Bank of America Merrill Lynch, Citigroup and JP Morgan are expected to lead the debt financing, if the deal goes ahead, with several other banks due to the large size of the underwriting, the sources said. The deal values the Thomson Reuters unit at about US$20 billion. Although the size of the financing is challenging, liquid banks and investors are eager to lend to new buyouts as the strong level of global demand continues to exceed supply.
2 min read · 30 January 2018
Northleaf Capital Partners has hired Roderick Gadsby as a managing director on the firm's infrastructure team. Gadsby will operate from Northleaf’s London office and focus on infrastructure transaction origination, due diligence, execution and asset management in the United Kingdom and Europe. He joins the firm from Stormharbour LLP, where he served as a partner. Gadsby also held senior infrastructure investment and advisory roles at UBS Investment Bank, Macquarie Group and Barclays Capital. Toronto-based Northleaf is a private equity, infrastructure and private credit manager.
2 min read · 30 January 2018
U.S. private equity firm Blackstone Group LP is in advanced talks to buy an approximate 55 percent stake in the Financial and Risk business of Thomson Reuters Corp, a deal that would value the unit at about US$20 billion including debt, sources told Reuters. Thomson Reuters’ board is expected to meet this week to discuss Blackstone’s offer for the F&R business, which supplies news, data and analytics to banks and investment houses around the world. The unit contributes more than half of Thomson Reuters’ annual revenues. Under the terms of the Blackstone offer, Thomson Reuters would retain a 45 percent stake in the F&R business as part of a partnership with the U.S. buyout firm, the sources said. Canada’s Thomson family controls more than 63 percent of Thomson Reuters shares through Woodbridge Co Ltd. The news and data provider has a market value of about US$31 billion.
4 min read · 30 January 2018
Beach & Associates Ltd, a Toronto-based specialty reinsurance intermediary, has agreed to be acquired by Acrisure LLC, a Caledonia, Michigan-based provider of insurance brokerage services. No financial terms were disclosed for the deal, which is expected to close in Q1 2018. The primary seller is U.S. private equity firm Aquiline Capital Partners, which acquired a majority stake in Beach in 2014. Beach will retain its name and continue to operate as an independent advisory and broking business within Acrisure. Acrisure closed a management-led buyout in 2016 in partnership with ABRY Partners, Genstar Capital and other investors.
2 min read · 29 January 2018
Graeme Roustan, head of Roustan Capital, has acquired The Hockey News, an ice hockey magazine, from TVA Publications Inc, an affiliate of Quebecor Media Inc's TVA Group Inc. No financial terms were released. Roustan also announced the launch of Roustan Media, which will hold the asset. Founded in 1947, The Hockey News supplies news, analysis, opinion, scores, and statistics from the National Hockey League and hockey leagues around the world. Roustan said the acquisition will provide the foundation of the soon-to-be launched TheSportsNews.com. Last year, Roustan Capital acquired hockey equipment brands Christian and Torspo.
3 min read · 29 January 2018
Canada Pension Plan Investment Board (CPPIB) has made an additional commitment to real estate development projects in China in partnership with Longfor Properties Co Ltd. CPPIB will contribute about $800 million to two development projects intended for residential and commercial use in the cities of Chengdu and Shanghai. CPPIB has previously invested with Longfor, a Chinese property developer, investor and manager, including in a 2016 joint venture involving Chongqing West Paradise Walk, a shopping centre.
4 min read · 29 January 2018
The growth equity group of BDC Capital announced it has completed $57 million in minority equity investments in Canadian mid-market businesses. Companies financed include Altitude Sports, a Montréal web retailer specializing in urban and outdoor high-end clothing, and BID Group, a Prince George, British Columbia integrated supplier to the wood processing industry that was acquired last year by Highland West Capital. Delco Automation, Intelcom Express, InvestorCOM, Prodomax Automation and Rx Drug Mart were also financed. In June 2017, BDC allocated $250 million for growth equity investing over five years to help companies scale in size.
3 min read · 29 January 2018
Citron Hygiene LP has acquired Hygiene Solutions Inc, a Chicago-based provider of washroom hygiene services in the Midwestern United States. No financial terms were disclosed. Peter Farrell, CEO of Citron, a Toronto-based provider of washroom hygiene, pest control, and life safety services for commercial facilities, said the purchase supports the company's U.S. growth strategy by building on last year's buy of Workplace Essentials in the Northeastern United States. Citron, a portfolio investment of Canadian private equity firm Birch Hill Equity Partners, plans to continue making acquisitions across North America.
3 min read · 26 January 2018
