Private Equity
STEP Energy Services Ltd, a Calgary coiled tubing and fracturing solutions provider, has launched a secondary offering of common shares on behalf of ARC Financial Corp, a Canadian energy private equity firm. The offering will sell about 5.3 million shares at $12.25 per unit, generating more than $65 million in gross proceeds. The offering's greenshoe option, if fully exercised, will increase the proceeds to about $75 million. ARC, which invested in STEP in 2011, will as a result see its interest reduced to about 67.9 percent of issued and outstanding shares, not including the greenshoe option. STEP went public earlier this year, raising $100 million.
4 min read · 13 November 2017
U.S. cybersecurity business Optiv Security Inc has acquired Conexsys Communications Ltd, a Mississauga, Ontario-based provider of enterprise networking and network security solutions. No financial terms were released. Optiv, which has its headquarters in Denver, Colorado, said the deal increases its ability to serve Canadian, U.S. and global customers and enhances its vertical presence in the public sector. Conexsys formed in 1997 and was bought by senior management in 2004 from Allan Crawford Associates Ltd. U.S. private equity firm Kohlberg Kravis Roberts & Co (KKR) acquired a majority stake in Optiv earlier this year.
3 min read · 13 November 2017
U.S. private equity firm Riverside Co has acquired Kii Naturals Inc, a Vaughan, Ontario creator and maker of all-natural artisan crisps, cereals, grains and other products. No financial terms were released for the deal, which will see Kii combined with NuStef Baking Ltd, a Mississauga, Ontario maker of pizelle waffle cookies and artisan crackers under the Reko brand. Riverside, which invested in NuStef in January, said it will help drive growth at both companies through leveraging a Canadian and U.S. distribution network, existing broker-retailer relationships, cross-selling and developing new products and flavours, among other strategies.
3 min read · 13 November 2017
Canadian real estate investment firm Brookfield Property Partners LP this week made an unsolicited bid to buy the 66 percent stake in Chicago-based mall owner GGP Inc it does not own for US$14.8 billion in cash and stock, Reuters reported. With about 127 properties, mostly in the United States, GGP’s tenants include carmaker Tesla, jeweler Tiffany & Co and retailer Macy’s Inc. The deal is expected to create a company with an ownership interest in almost US$100 billion real estate assets globally and annual net operating income of about US$5 billion, Brookfield said. GGP shareholders will own about 30 percent of the combined company.
2 min read · 13 November 2017
Knowlton Development Corp (KDC) has acquired Aromair Fine Fragrance Company Inc, a New Albany, Ohio-based manufacturer and supplier specializing in the fine fragrance and home and air care categories. No financial terms were disclosed. KDC acquired the business from Aromair Group, a portfolio company of U.S. private equity firm Strategic Value Partners (SVPGlobal). SVPGlobal invested in 2011. Based in Longueuil, Québec, KDC is a contract manufacturer for the personal care products industry. The Aromair acquisition is one of several completed by the company since 2014 with the support of its owner, Canadian private equity firm Novacap.
3 min read · 10 November 2017
Neo Performance Materials, an advanced-materials supplier that emerged from bankruptcy in 2016, priced its recently filed initial public offering in Canada. The Toronto company is looking to raise $345 million by selling common shares at $19 to $22 per unit, the updated prospectus shows. The issue’s greenshoe option, if fully exercised, would bring the total raised to $345 million. All proceeds from the IPO will go to Neo Performance’s majority owner, Los Angeles distressed investor Oaktree Capital Management. This suggests Oaktree will likely reclaim a sizeable portion of the investment it made when it took control of the company a little over a year ago.
2 min read · 10 November 2017
Resurrected Canadian steelmaker Stelco Holdings Inc is banking on growth from ramped-up production and acquisitions, Chief Executive Alan Kestenbaum told Reuters, as the 107-year-old company completed its initial public offering. Hamilton, Ontario-based Stelco, owned by U.S. private equity group Bedrock Industries, will use part of its $230 million IPO proceeds on projects that boost capacity at its two steel-processing facilities in southern Ontario. The listing also allows quick access to capital markets if a suitable M&A deal emerges among “numerous” potential targets, Kestenbaum said.
2 min read · 10 November 2017
Toronto cancer diagnostic company GeneNews Ltd (TSX: GEN) has struck a deal to receive up to US$10 million in debt and equity funding from Milost Global, a U.S. private equity firm. Beginning with an initial equity tranche of US$500,000, GeneNews plans to use the funds raised for working capital and other priorities, including the growth strategy for its Innovative Diagnostic Laboratory clinical reference lab business in Richmond, Virginia. Founded in 1998, GeneNews' focus on diagnostics and personalized medicine also supports early detection of other chronic diseases. The company is led by Chairman and CEO James Howard-Tripp.
5 min read · 09 November 2017
FirePower Capital has hired Anthony Lipschitz as a partner, private equity. Lipschitz joins the firm from Thinking Capital, where he served as chief strategy officer. He has also worked as a technology executive, including at iStopOver, a short-term vacation rental platform he co-founded and led, and served as a vice president at Brightspark Ventures. FirePower also announced its hire of Alan Chettiar as head of investment banking and the opening of a Montréal office. Earlier this year, PE Hub Canada profiled the debut deals of FirePower's private capital division, which launched last year.
2 min read · 08 November 2017
Canadian department store retailer Hudson’s Bay Co (TSX: HBC) said the Toronto Stock Exchange has conditionally approved the $632 million (US$500 million) investment in HBC by U.S. private equity firm Rhône Capital. The investment, announced last month, will give Rhône a voting and equity interest of 21.8 percent (or about 30 percent if the shares are held for eight years). Rhône will also have the right to nominate two board members. HBC said most shareholders have already approved the deal along with the company's US$850 million sale of the Lord & Taylor Fifth Avenue building.
6 min read · 08 November 2017
