Private Equity
BGL Group, owner of Comparethemarket.com, said this week it would sell a 30 percent stake for about 675 million pounds ($1.14 billion) to Canada Pension Plan Investment Board instead of listing its shares in London, Reuters reported. BHL, the owner of BGL Group, will retain a majority shareholding in the business and the deal is expected to be completed by the end of April 2018, it said. Peterborough, U.K.-based BGL Group distributes insurance and household financial services to 8.5 million customers and runs price comparison websites Comparethemarket.com in Britain and LesFurets.com in France. CPPIB will nominate a non-executive director to the company's board with the deal's closing.
2 min read · 23 November 2017
South African cement producer PPC’s board this week turned its back on a takeover attempt by AfriSam, backed by Canadian firm Fairfax Africa Investments, but PCC said it was still talking to CRH and LafargeHolcim, Reuters reported. PPC has been a takeover target on-and-off for several years, with locally-based AfriSam, Nigeria’s Dangote Cement, Irish building materials company CRH and Switzerland’s LafargeHolcim all interested in it. Fairfax offered to buy 22 percent of PPC in September for 5.75 rand per share, or 2 billion rand (US$144 million), on condition that it was approved by shareholders in order to allow AfriSam’s merger plan. PPC has operations in six countries across Africa.
2 min read · 22 November 2017
Canada’s private equity market saw $20.9 billion invested in 447 deals in the first nine months of 2017, already surpassing the $13.8 billion invested in all of 2016, according to a report by the Canadian Venture Capital and Private Equity Association (CVCA). Three mega-deals, including the $4.8 billion buyout of DH Corp, accounted for 38 percent of total values; however, the report also found growth in other market segments. Activity in Q3 2017 contributed to overall trends, with $7.1 billion invested in 160 deals, up 133 percent from Q3 2016. The industrial and manufacturing sector has so far accounted for the largest share of 2017 PE deals, or 19 percent of the total.
3 min read · 22 November 2017
Canadian laundry business K-Bro Linen Inc (TSX: KBL) has agreed to acquire the parent of Fishers Services Ltd, a Cupar, United Kingdom-based provider of textile rental services to the hospitality, healthcare, manufacturing and pharmaceutical sectors. K-Bro agreed to pay about $59 million (£35 million). The acquisition, Edmonton-based K-Bro's largest to date and its first outside of Canada, is expected to close this month. The seller is U.K. private equity firm Caird Capital, which invested in Fishers in 2007. K-Bro CEO Linda McCurdy said the deal will allow her company to take advantage of the "significant" growth and consolidation opportunities in the U.K. market.
6 min read · 22 November 2017
Itafos (TSX-V: IFOS), a producer of phosphate-based fertilizers and specialty products, has launched a private placement to raise about $96 million. Zaff, a U.S. distressed private equity firm and holder of about 61 percent of Itafos’ shares, agreed to invest. Zaff will also buy any of the shares that are not otherwise purchased. Itafos said it will use the proceeds in part to fund acquisitions. These likely include an Idaho phosphate production facility that the company agreed to buy this month from Agrium Inc for US$100 million. Itafos, which is also backed by Pala Investments and J.P. Morgan, recently redomiciled from Canada to the Cayman Islands.
6 min read · 22 November 2017
Distinct Infrastructure Group Inc (TSX-V: DUG) has acquired Crown Utilities Ltd, a Winnipeg-based specialist in the installation of utility services, for $17 million. Distinct, a Toronto-based infrastructure provider for utilities and local governments, said the deal accelerates its growth and gives it a foothold in Manitoba. Distinct also refinanced its credit facility and completed a $10 million private offering of shares, part of which was used to help fund the acquisition. The investor was Canadian private equity firm SeaFort Capital. As a result, SeaFort holds a 15.8 percent interest and has a seat on the board. Distinct is also a portfolio company of Crown Capital Partners.
6 min read · 21 November 2017
Rio Tinto, Canada’s Wealth Minerals and Chinese private equity firm GSR Capital are considering a bid for a stake in Chilean lithium producer SQM (Sociedad Quimica Y Minera de Chile), banking sources told Reuters. Canada’s Potash Corp of Saskatchewan must divest its 32 percent stake in the Chilean company as part of its merger with rival Agrium Inc. Given SQM’s market capitalization of around US$15 billion, according to Reuters data, this would give a value to the stake of US$4.8 billion. SQM said it has received significant interest from potential acquirers as demand rises for lithium, essential for batteries used in electric vehicles.
2 min read · 21 November 2017
Copper Mountain Mining Corp (TSX: CMMC) has agreed to acquire the entire issued capital of Altona Mining Ltd, a mining company and owner of the Cloncurry Copper Project in Queensland, Australia. The deal values Altona at about A$93 million ($90 million). Altona's major shareholder, Matchpoint Asia Fund, a Hong Kong hedge fund, indicated that it will vote in favour. Copper Mountain, a Vancouver-based mining company and 75 percent owner of the Copper Mountain Mine in British Columbia, said the deal will create a multi-jurisdictional, mid-tier copper producer with a pro forma market cap of about $300 million.
10 min read · 20 November 2017
Canadian private equity firm Walter Capital Partners has made a new, undisclosed investment in Bonlook, a Montréal-based fashion eyewear company. The investment, which adds to an initial financing provided by Walter Capital last year, will support the company's continued online and store-level growth. Led by President Sophie Boulanger, Bonlook is developing an omnichannel model for its optical business that includes new store openings and an enhanced online platform for selling products internationally. Its objectives include expanding its store network to about 50 points of sale in Canada by 2020.
3 min read · 20 November 2017
Rayonier Advanced Materials Inc (NYSE: RYAM) has closed its acquisition of Tembec Inc, a Montréal-based paper and cellulose pulp maker, for about $1.1 billion. Jacksonville, Florida-based Rayonier said the deal combines two complementary cellulose businesses and will help diversify its product offerings with integrated forest products, paper, paperboard and newsprint businesses. Rayonier increased its offer for Tembec in July when Oaktree Capital Management and Restructuring Capital Associates, the Canadian company's two largest shareholders, raised concerns about the initial bid.
2 min read · 20 November 2017
