Canada

Brookfield eyes Indian mobile towers as RCom deal stumbles: Reuters

A unit of Canada’s Brookfield Asset Management said it is evaluating a number of telecom tower portfolios in India to scale its presence after talks to acquire over 40,000 towers from debt-laden Reliance Communications hit a snag, Reuters reported. The deal with Brookfield hinged on Reliance Communications, or RCom, merging its mobile operations with rival Aircel but the merger was called off last month due to regulatory delays and legal uncertainties. "The merger will not proceed and therefore our transaction as previously announced will not proceed either. However, we continue to monitor the evolving situation to determine if revised terms can be agreed upon," Brookfield Infrastructure Partners said in an SEC filing on November 3. Brookfield said it is still pursuing RCom and other opportunities in this sector to scale its presence in India.

Novacap invests in growth of Leading Edge Geomatics

The technology group of Canadian private equity firm Novacap has made an undisclosed investment in Leading Edge Geomatics, a Lincoln, New Brunswick-based provider of end-to-end aerial lidar surveying services across North America. The deal is intended to support the company's expansion into new markets, strategic acquisitions, and continued R&D investment. Founders Bruce Hogan, Bill Kidman and Will Lowry, who launched Leading Edge in 2008, will continue to operate the business and hold a significant ownership stake. Leading Edge is the final platform investment of Novacap TMT IV. Earlier in 2017, Novacap raised $840 million in the close of Novacap TMT V.

Cipher pays down Athyrium debt with new $20 mln facility

Canadian specialty pharmaceutical company Cipher Pharmaceuticals Inc (TSX: CPH) has entered into a US$20 million senior secured term credit facility with Canadian Imperial Bank of Commerce. The proceeds will be used to repay the remaining balance on senior secured notes provided by Athyrium Capital Management, a U.S. healthcare investment firm. Athyrium in 2015 supplied Cipher with US$100 million in notes, used in part for the company's acquisition of Innocutis Holdings. Based in Mississauga, Ontario, Cipher is focused on the dermatology products market.

Q3 Canadian mega-deals plummet, but mid-market remains strong

A recent edition of the Globe & Mail featured the following eye catcher: “Canadian M&A Craters in the Third Quarter”. While it’s true that mega-deals cratered in the third quarter, mid-market activity, the bread and butter of Canadian mergers and acquisitions, remained strong, writes Karen Fisman of Toronto boutique M&A advisory firm Valitas Capital Partners. In an exclusive feature article for PE Hub Canada, Fisman says Valitas and other market sources believe 2017 is in fact shaping up quite well for Canada's mid-market, with the fourth quarter already off to a strong start.

Bedrock-owned Stelco prices IPO to raise up to $230 mln

Canadian steel company Stelco Inc has priced its initial public offering on the Toronto Stock Exchange to raise gross proceeds of more than $200 million. Stelco has also granted to underwriters a greenshoe option that could generate an additional $30 million. Shares are expected to begin trading on November 3 under the symbol "STLC". Hamilton, Ontario-based Stelco earlier this year emerged from creditor protection and closed a restructuring deal with U.S. private equity firm Bedrock Industries Group. With the IPO's close, Bedrock is expected to hold 86.5 percent of the company’s outstanding shares, not including the greenshoe option.

Crown Capital to buy Petrowest assets, recoup $25 mln loan

Canadian specialty finance firm Crown Capital Partners has created an affiliate to acquire the civil division of Calgary infrastructure specialist Petrowest Corp (TSX: PRW), whose assets are being sold following an application for receivership in August. The Crown affiliate has also bid to buy Petrowest's rental division. Additionally, Timber Pro Logging Ltd will buy Petrowest's Cutbank transportation division, while Century Services Corp has bid for most of its equipment. Crown said the combined proceeds of deals will likely range between $60 million to $70 million. It expects to recoup its $25 million of loans outstanding to Petrowest from asset sales and other interests.

Chinese firms, OTPP, Permira among bidders for I-MED: Reuters

Two Chinese healthcare companies are among investors seeking to buy Australia’s I-MED Radiology Network in a deal that could value the X-ray provider at more than A$1 billion (US$765 million), sources told Reuters. Shenzhen-listed Tonghua Golden-Horse Pharmaceutical Industry and Hong Kong-listed Golden Meditech Holdings are likely to participate in a second round of bidding. Ontario Teachers’ Pension Plan, Canada’s third-largest public pension plan, and London-based private equity firm Permira, are also expected to submit separate bids, two of the sources said. I-MED is owned by Swedish private equity firm EQT Holdings, which acquired it in 2014.

Newlook Capital, Seth acquire La Prep Franchise System

Canadian private equity firm Newlook Capital has partnered with Seth Corp in the acquisition of the La Prep Franchise System, the franchise system of La Prep, a Montréal-based bistro-style restaurant specializing in freshly prepared sandwiches, salads, baked goods and specialty coffees. Financial terms were not disclosed for the deal, which includes La Prep's Ontario Master Franchise and all 52 franchised Canadian locations, as well as Seth's brand, Chaska Indian Street Food. Newlook's investment, made through New Taste Partners, will support La Prep's and Chaska's pursuit of new opportunities in the quick service restaurant sector.

HBC defends $500 mln investment from Rhône Capital

Canadian retailer Hudson’s Bay Co (TSX: HBC) has responded to criticism from Land & Buildings Investment Management about its recent deals, including the sale of a stake to U.S. private equity firm Rhône Capital for US$500 million. HBC said the Rhône sale, which is "interconnected" with the US$850 million sale of the Lord & Taylor Fifth Avenue building, is not a control investment, as alleged. Rhône's buy of convertible preferred shares will instead give it a voting and equity interest of 21.5 percent (or about 30 percent if the shares are held for eight years). HBC urged Land & Buildings, a U.S. hedge fund, to "stop misleading our shareholders."

Gentherm buys Argosy Partners-backed Etratech for $82 mln

Gentherm (Nasdaq-GS: THRM) has acquired Etratech Enterprises Inc, a Burlington, Ontario-based designer, developer and maker of advanced electronic controls and control systems for the automotive, recreational vehicle and marine, security, medical and other industries. Gentherm, a U.S. thermal management technologies company, paid about $82 million (US$64 million) in cash for the company to diversify its product portfolio and capabilities. The deal provides an exit to the Shotgun Fund of Canadian private equity firm Argosy Partners, which invested in 2000. Etratech was founded in 1989 by President and CEO Michael Desnoyers.