Private Equity
Rising equity markets and clarity on U.S. tax reform could set the stage for an acceleration in Canadian mergers and acquisitions this year after a slowdown in 2017, investment bankers told Reuters. Canadian M&A activity slipped 6 percent in 2017 to US$239.7 billion, from US$255.1 billion in the previous year, data from Thomson Reuters showed on Thursday. While uncertainty around the tax regime weighed on deal activity in 2017, bankers expect the recently passed changes to the U.S. tax system to boost the allure of U.S. companies to Canadian firms and funds looking to make acquisitions. With Canadian and U.S. stocks at record highs, bankers also see buoyant equity markets supporting deals. Pension funds are expected to fuel deal activity as they look to invest massive capital pools.
3 min read · 04 January 2018
Totten Insurance Group, an affiliate of Hub International Ltd, has acquired the shares of Belyer Insurance Ltd, which operates as EasyInsure, a Windsor, Ontario-based digital insurance brokerage. No financial terms were released. Totten, a Toronto-based provider of solutions for challenging insurance accounts and specialty risks, said it intends to leverage EasyInsure's digital capabilities to better support its clients. Hub, which has its head office in Chicago, is a portfolio company of U.S. private equity firm Hellman & Friedman.
2 min read · 03 January 2018
Canadian royalty financing firm Grenville Strategic Royalty Corp has agreed to provide growth capital to Solar Brokers Canada Corp, a Toronto-based residential solar sales organization. Grenville invested an initial $1.075 million through an expandable facility. Affiliated with Green Lion Eco Group Corp, a Toronto-based provider of custom engineered solar solutions, Solar Brokers has since 2012 brokered the sale of more than 30 megawatts of solar to Ontario homeowners.
3 min read · 03 January 2018
IDI Gazeley, a U.S. investor and developer of logistics warehouses and distribution parks, has been renamed IDI Logistics with the sale of Gazeley, the company's European counterpart. Brookfield Asset Management, owner of IDI Logistics, agreed in October to sell the European business to Asia's Global Logistic Properties for US$2.8 billion. Based in Atlanta, Georgia, IDI Logistics has 33 million square feet of assets under management and additional land sites to develop another 20 million square feet of distribution facilities in North America.
2 min read · 03 January 2018
The student housing joint venture of Canada Pension Plan Investment Board (CPPIB), Singapore sovereign wealth fund GIC and property owner Scion Group LLC has bought 24 U.S. student housing properties for US$1.1 billion, Reuters reported. CPPIB, Canada’s biggest public pension fund, formed the joint venture, Scion Student Communities LP, with GIC and Scion in 2016. The deal includes the acquisition of 22 properties from affiliates of Harrison Street Real Estate Capital and the recapitalization of two communities previously owned by Scion-affiliated private syndications. CPPIB and GIC each own a 45 percent interest in the newly acquired portfolio and Scion owns the remaining 10 percent. The parties struck a similar deal for three U.S. student housing portfolios for about US$1.6 billion last year.
1 min read · 03 January 2018
Canada’s initial public offering (IPO) market set a five-year record in 2017, with a total of $5.1 billion in proceeds raised by 38 new equity issues, according to a survey by PwC. Activity was supported by an especially strong fourth quarter that saw $1.7 billion raised, in large part due to revived mining IPOs. Private equity- and venture-backed IPOs also played a key role in 2017 trends and could continue to exert influence in 2018, PwC National IPO Leader Dean Braunsteiner said. PE Hub Canada in December estimated that a dozen private equity- and venture-backed IPOs raised $2.3 billion last year.
4 min read · 02 January 2018
Millar Western Forest Products Ltd has bought all of the shares of Spruceland Millworks Inc, an Acheson, Alberta-based maker and distributor of spruce, pine and fir wood products. No financial terms were released. Millar Western said the buy will strengthen its business by integrating the company's existing sawmill operations with Spruceland's value-adding manufacturing capabilities. Spruceland is the first acquisition disclosed by Edmonton's Millar Western since it was recapitalized last May by Atlas Holdings, a U.S. private equity firm. The deal gave Atlas a majority stake and three board seats, one of which is occupied by Managing Partner Tim Fazio.
3 min read · 02 January 2018
Canadian specialty finance firm Crown Capital Partners has supplied an $8 million term loan to Canadian Helicopters Ltd, a provider of helicopter transportation and related support services based in Les Cèdres, Québec. The loan supported the purchase of the company's onshore operations by President and CEO Don Wall. The buy, wrapped up last month, saw HNZ Group Inc, Canadian Helicopters' parent organization, taken private and split between two buyers. Founded in 1947, Canadian Helicopters today has a network of 11 fixed bases and owns and operates 91 light, medium, and heavy lift helicopters.
3 min read · 02 January 2018
Canadian oil company PetroShale Inc (TSX-V: PSH) has agreed to receive strategic financing of about $94 million (US$75 million) from First Reserve Corp, a U.S. private equity firm. First Reserve agreed to acquire Series A preferred shares in PetroShale's U.S. subsidiary, which will give Managing Director Brooks Shughart a seat on the board. Calgary-based PetroShale said the deal, expected to close in mid-January, will accelerate its long-term plan to acquire and develop light oil interests in the North Dakota Bakken-Three Forks region. Additionally, the company expects to gain financial flexibility and a secure funding source for its 2018 drilling and completions capital program.
7 min read · 02 January 2018
Vertex Resource Group Ltd (TSX-V: VTX) has acquired the business of Sonic Oilfield Services Ltd, a Calgary environmental services company that provides pressure trucks, fluid hauling, chemical and other products. Vertex, which paid $4.5 million in cash and stock, said the deal expands its presence in Saskatchewan. Based in Sherwood Park, Alberta, Vertex provides environmental and industrial services. Last October, it closed an $85.8 million qualifying transaction on the TSX Venture Exchange with the backing of Canadian energy private equity firm 32 Degrees Capital.
3 min read · 02 January 2018
