Private Equity
U.S. private equity firm Blue Equity has acquired Liquor Barn, a Kentucky spirits, beer and wine retailer affiliated with Liquor Stores North America Ltd (TSX: LIQ). No financial terms were disclosed; however, in a separate release, Liquor Stores, an Edmonton-based operator of retail liquor stores, said the deal will generate proceeds of as much as $37.6 million. Liquor Stores, which also plans to sell a 51 percent interest in Birchfield Ventures LLC of New Jersey, is looking to refocus on core markets in Alberta, British Columbia and Alaska. Blue Equity said Liquor Barn will be relocated to Louisville, Kentucky.
3 min read · 20 November 2017
Japanese restaurant business YO! Sushi has acquired Bento Sushi, a Toronto-based sushi brand with more than 600 locations and an additional 1,700 partner sites. No financial terms were disclosed for the deal; however, the Wall Street Journal reported the value at about $100 million. British private equity firm Mayfair Equity Partners, which bought London, U.K.-based YO! in 2015, facilitated the acquisition. Bento, established in 1996 by Chairman Ken Valvur, launched an initial public offering earlier this year, but reportedly withdrew it due to a lack of investor interest. Bento's merger with YO! creates "one of the largest sushi companies outside Japan," the companies said.
5 min read · 20 November 2017
TricorBraun Inc has acquired Taipak Enterprises Ltd, a Richmond, British Columbia-based provider of standard and custom flexible packaging solutions. No financial terms were released. TricorBraun, a St. Louis, Missouri-based distributor of rigid plastic and glass bottles and closures, said the deal marks its entry into the flexible packaging space. It added that Taipak's current owners, Joey Lin and Charanjit Hayre, will continue to manage the business. TricorBraun, a portfolio company of U.S. private equity firm AEA Investors, earlier this year acquired Salbro Bottle Inc.
3 min read · 20 November 2017
Private equity firms are awash in cash, with nearly US$1 trillion of available capital, but the industry is facing internal competition as limited partner investors seek to play a more active role in buyouts, Reuters reported, quoting David Rubenstein, co-founder and co-CEO of the Carlyle Group. The structure and composition of PE funds will change significantly as LPs that would previously have invested in the funds increasingly branch out into arranging buyouts themselves, Rubenstein said. He predicted that sovereign wealth funds will replace U.S. public pension funds as the largest source of capital for buyout firms, and said that retail investors will also play a more significant role going forward.
3 min read · 17 November 2017
Ontario Teachers' Pension Plan has acquired Atlantic Aqua Farms, an Orwell Cove, Prince Edward Island-based grower and processor of P.E.I. blue mussels under the brands Canadian Cove, Confederation Cove and J.P.'s Shellfish, as well as branded oysters, clams and live lobster. No financial terms were disclosed; however, Undercurrent News said the value is likely to be more than $100 million. The seller was U.S. private equity firm Encore Consumer Capital, which bought the company in 2008. The deal is Ontario Teachers' first in the aquaculture sector, which Senior Managing Director Andrew Claerhout said reflects "significant opportunities for long-term growth."
3 min read · 17 November 2017
Western Investment Co of Canada and a partner have agreed to acquire 90 percent of an unidentified agrifood processor based in Western Canada. The deal is valued at about $25.5 million, including the market value of the real estate. With its closing, scheduled for the end of January 2018, Western, a Canadian private equity firm, will own about 50 percent of the company, while its unidentified partner will own about 40 percent. Scott Tannas, CEO of Western, said the agrifood processor "has a young management team led by a founder focused on finding the right partners to ensure the continuity of the business."
3 min read · 17 November 2017
Caesars Entertainment Corp (Nasdaq: CZR) has agreed to acquire Centaur Holdings LLC, an Indianapolis, Indiana owner and operator of the Hoosier Park Racing and Casino and the Indiana Grand Racing and Casino. In a separate release, Caesars said it will buy Centaur for US$1.7 billion in cash. The deal, expected to close in the first half of 2018, will provide exits to Canadian private equity firm Clairvest Group and Canadian hedge fund manager West Face Capital, which invested jointly in 2010. Centaur was restructured, with Clairvest and West Face holding a controlling interest. Today, more than 6.5 million people visit the company's properties each year.
3 min read · 16 November 2017
A new survey by EY points to an increasing appetite for merger and acquisition deals in the global oil and gas sector. The EY Oil & Gas Capital Confidence Barometer found 69 percent of energy executives expect to actively pursue an acquisition in the next 12 months, an all-time high for the survey. Additionally, 96 percent of energy executives expect the M&A market to improve or remain stable over this period, in part due to the activity of private equity firms, EY noted. The United States and Canada are the top two oil and gas investment destinations, with "resilient activity so far in 2017."
5 min read · 16 November 2017
CEDA has acquired Joe Loomis Trucking Ltd, a Dawson Creek, British Columbia operator of a fleet of hydro vacuum and combination vacuum units. No financial terms were disclosed. CEDA, a Calgary-based industrial services company providing maintenance, turnaround, construction and project services, said the acquisition will expand its offering to oil and gas customers. CEDA is a portfolio investment of OMERS Infrastructure, the infrastructure arm of the Ontario Municipal Employees Retirement System. OMERS acquired the business from Precision Drilling Corp for $274 million in 2005.
3 min read · 16 November 2017
Jeld-Wen Holding Inc (NYSE: JELD) has priced a secondary offering of 12.5 million shares at US$33.75 per unit for certain investors, including Canadian private equity firm Onex Corp. Onex, which has backed the company since 2011, said its proceeds will be about US$120 million. They add to the US$418 million collected by the firm from a secondary sale in May. Onex will continue to have an economic interest of 33 percent. Jeld-Wen, a Charlotte, North Carolina-based maker of doors and windows, wrapped up its initial public offering earlier in 2017. Onex this week closed fundraising for Onex Partners V, raising US$7.15 billion.
3 min read · 16 November 2017
