Private Equity
Canadian private equity firm Roynat Equity Partners has sold its interest in SkyTrac Systems Ltd, a Kelowna, British Columbia-based provider of business solutions to the non-scheduled commercial aviation industry. No financial terms were disclosed for the deal, which saw SkyTrac go to Drew Marine Global Holdings, a portfolio company of U.S. private equity firm Jordan Co. Established in 1986, SkyTrac serves more than 6,500 users with flight following, flight data and communications technology. It will continue as an independent brand affiliated with U.S.-based Drew Marine's emergency beacon unit. Roynat invested in SkyTrac's management buyout in 2013.
3 min read · 24 October 2017
Canadian department store operator Hudson’s Bay Co agreed to sell its Lord & Taylor building for US$850 million to SoftBank-backed WeWork Cos and shrink the flagship store on New York’s Fifth Avenue to a quarter of its current size, Reuters reported. HBC also reaffirmed a commitment to its European operations despite opposition from activist investor Jonathan Litt, who is considering seeking the removal of some directors. The company also said U.S. private equity firm Rhône Capital will invest US$500 million in HBC, with the transactions reducing its debt by $1.6 billion and increasing liquidity by $1.1 billion.
3 min read · 24 October 2017
Nouveau Monde Graphite Inc, a natural graphite producer, has closed the second tranche of a private placement offering, raising gross proceeds of about $9.2 million. Québec private equity funds, including Ressource Québec, Sodémex Développement, Fonds de solidarité FTQ, Sidex and Capital croissance PME (CCPME), backed the tranche. Montréal-based Nouveau said the funds raised will be used to develop its Matawinie graphite project in Québec. Sodémex is sponsored by Caisse de dépôt et placement du Québec (CDPQ), while CCPME is jointly sponsored by CDPQ and Capital régional et coopératif Desjardins.
4 min read · 23 October 2017
British broadcast and mobile masts company Arqiva plans to raise around 1.5 billion pounds (US$2 billion) in the biggest initial public offering in London so far in 2017, Reuters reported. After 2.6 billion pounds worth of debt held by shareholders is converted into equity, Arqiva’s implied enterprise value, which includes debt, could be around 6 billion pounds, a source said. The listing of at least 25 percent of Arqiva is expected to be the largest in terms of proceeds in London so far this year, although its shareholders, including Canada Pension Plan Investment Board and Macquarie Infrastructure Fund, only intend to sell shares through an over-allotment option of up to 15 percent.
2 min read · 23 October 2017
Canadian steelmaker Stelco Holdings Inc expects its initial public offering to be priced between $16 to $18 per share, raising about $200 million (US$158 million) at the mid-point, Reuters reported. The company, owned by U.S. private equity firm Bedrock Industries, plans to offer between 11.11 million and 12.50 million of common shares. Stelco, which is emerging from its second bankruptcy in 13 years, will list on the Toronto Stock Exchange under the symbol “STLC”.
1 min read · 23 October 2017
The family office of Philippe de Gaspé Beaubien III has launched DGC Capital, a new Canadian private equity firm that will invest in entrepreneurial businesses in information and communication technologies, technology, lifestyle and advanced manufacturing sectors. DGC will be led by President and Managing Partner Françoise Lyon. Lyon joins the firm following a long career as a financial executive, most recently as a senior vice president at Pembroke Private Wealth Management, a boutique wealth advisory firm. Beaubien will assume the role of DGC's chairman, while Robert Courteau will serve as co-managing partner, investments.
3 min read · 23 October 2017
Xplornet Communications Inc has agreed to acquire the Internet access business of NetSet Communications, a Brandon, Manitoba telecommunications company. No financial terms were released for the deal, the largest in Xplornet's history. Xplornet, a rural broadband service provider, said the deal will accelerate its expansion across Western Canada, add to its customer base, and support the launch of a mobile wireless service in Manitoba. Based in Woodstock, New Brunswick, Xplornet is backed by Catalyst Investors, Sandler Capital Management, Werklund Capital Corp and other investors.
3 min read · 23 October 2017
Activist investor Jonathan Litt, who is pushing for change at Hudson’s Bay Co, said this week he is considering seeking the removal of several directors at a special shareholder meeting following the abrupt departure of its chief executive officer, Reuters reported. The exit of HBC CEO Gerald Storch, announced last week by the company, underscored the board’s attempt to “buy time and placate investors to address underperformance and undervaluation,” Litt, the founder of U.S. hedge fund Land & Buildings Investment Management, said in a statement. Land & Buildings holds about 5 percent of the shares of HBC, which owns the Saks Fifth Avenue and Lord & Taylor retail chains. The hedge fund has been pushing the Canadian retailer to take action to extract value from its substantial real estate holdings to boost the share price and consider other options, including the sale of Saks.
2 min read · 23 October 2017
BDC Capital has provided $2.2 million in senior debt and mezzanine financing to Fuller Industrial Corp, a Sudbury, Ontario-based maker and supplier of rubber-lined pipes, fittings and tanks for the mining, forestry and heavy industrial sectors. The funds raised will support Fuller's acquisition of ACR Group Inc, a manufacturer of wear and impact resistant products. The deal will help Fuller expand into Western Canada and penetrate the oil and gas industry. Fuller was established in 2004 by CEO Jeff Fuller. BDC Capital invested in the company through its Growth and Transition Capital group, which earlier in 2017 received $1.8 billion in fresh funding.
3 min read · 23 October 2017
Canadian private equity firm Ardenton Capital Corp has invested in Comtrad Strategic Sourcing, a Toronto-based sourcing and logistics company. No financial terms were released for the deal, Ardenton’s fourth in Canada in the past twelve months. Established in 1977, Comtrad specializes in sourcing products from Asian suppliers to original equipment manufacturers and distributors with operations in North America. Comtrad President and CEO Jim Long said the partnership with Ardenton will help the company expand its product and service offerings.
2 min read · 20 October 2017
