Private Equity
France's Airbus SE is in talks to sell a part or all of Premium Aerotec, a subsidiary that makes large plane components, Reuters reported, citing a story by Die Welt newspaper. Airbus has held talks with one possible buyer, the Canadian private equity investor Onex Corp, the German paper said. Premium Aerotec generates about 2 billion euros (US$2.39 billion) in revenue, according to its website. It specializes in large and complex aircraft components for Airbus, Boeing’s B787 Dreamliner, the Eurofighter Typhoon and military transporter A400M. In 2005, Boeing sold a similar business, later called Spirit Aerosystems, to Onex for about US$950 million.
1 min read · 25 September 2017
Canadian healthcare private equity firm Persistence Capital Partners (PCP) has appointed Norman M. Steinberg as a senior advisor. Steinberg is currently chair emeritus of Norton Rose Fulbright Canada. In the period 2005 to March 2017, he was co-chair and then chair of Norton Rose Fulbright and its predecessor, Ogilvy Renault. During his 40-year legal career, he has focused on M&A, corporate finance and corporate governance, and advised on key Canadian deals. Steinberg will advise PCP as the firm explores new healthcare opportunities. He will also provide strategic and operational advice to portfolio companies.
3 min read · 25 September 2017
German industrial group Siemens is likely to decide this week to pursue a multi-billion dollar rail merger with French rival Alstom rather than Canada’s Bombardier, two sources familiar with the matter told Reuters. Siemens Mobility is expected to be merged into Alstom, in which Siemens would hold 50 percent-plus-one share, while the chief executive would be Alstom’s current boss Henri-Poupart Lafarge. The combined business would have sales of about 15 billion euros (US$18 billion). The decision would be a blow for planes-and-trains maker Bombardier, which faces a separate battle this week to protect aerospace jobs in Québec and Northern Ireland amid a subsidy row with Boeing. Caisse de dépôt et placement du Québec owns 30 percent of Bombardier’s rail business.
3 min read · 25 September 2017
SBI Life Insurance Co Ltd’s initial public offering to raise 84 billion rupees (US$1.3 billion), India’s biggest IPO in seven years, was subscribed more than 3.5 times on the closing day, strengthening the outlook for share sales in what is expected to be a record year, Reuters reported. SBI Life, which will be the second life insurance company to list, saw bids for about 29.5 million shares, compared to the 8.8 million shares on offer, stock exchange data showed. Anchor investors, including Canada Pension Plan Investment Board and Singapore state investor GIC, have already committed to subscribe to 22.26 billion rupees worth of shares.
2 min read · 22 September 2017
Alberta Investment Management Corp (AIMCo) has agreed to provide a $215 million second lien senior secured term loan facility to Western Energy Services Corp, a Calgary-based provider of contract drilling, well servicing and rental operations in North America. AIMCo also entered into a private placement deal that will generate gross proceeds of about $11.4 million. With the close of the deal and a concurrent bought deal financing, the pension fund will own up to 16 percent of the company's outstanding shares. AIMCo CEO Kevin Uebelein said the investment will support Western as it navigates current energy industry challenges and prepares for future growth.
3 min read · 22 September 2017
Canadian alternative equity firm Alaris Royalty Corp has committed an additional US$6 million to Sandbox Group LLC, a Chicago marketing and advertising services specialist. Alaris first funded the company last year. The firm also committed an additional US$2 million to C&C Communications LLC, a Federal Way, Washington Sprint preferred retailer, also backed in 2016. Alaris said the proceeds of the deals will help the companies make acquisitions. Alaris has so far this year deployed about $150 million in capital, including to Sales Benchmark Index LLC, the firm's largest investment on record.
2 min read · 21 September 2017
Siemens is in talks to merge its rail business with that of either France's Alstom or Canada's Bombardier and will pick a preferred partner within days for further negotiations, a source told Reuters. Rail mergers have become a recent trend as global companies seek to contain costs and Western ones struggle with competition from China’s state-backed CRRC Corp. Sources told Reuters in July that Bombardier and Siemens were in the final stages of talks to combine their rail operations. Caisse de dépôt et placement du Québec owns 30 percent of Bombardier’s train business.
2 min read · 21 September 2017
Marshall Excelsior Co (MEC) has bought BASE Engineering Inc, a Canadian designer and maker of radio remote control technology for the liquefied petroleum gas (LPG) and refined fuels industries. No financial terms were disclosed. Founded in 1996 by President and CEO Steve Belyea, BASE has its headquarters in Saint John, New Brunswick. Marshall, Michigan-based MEC said the acquisition will complement its flow-control products, which are used to transport, store and consume LPG and NH3. MEC is backed by U.S. private equity firm Harbour Group, which acquired it earlier this year.
3 min read · 21 September 2017
Encanto Potash Corp (TSX-V: EPO), a Canadian potash development and mining company, has secured a $100 million funding facility. The investor is Global Emerging Markets (GEM), a U.S. private equity firm. The facility will allow Encanto to invest over the next three years in the engineering and design phase of a mining project in Saskatchewan. The company secured the mineral rights in a joint venture agreement with Muskowekwan Resources Ltd and representatives of the Muskowekwan tribe. The facility's proceeds will also be used for the procurement and supply of third-party potash. Vancouver-based Encanto is led by President and CEO Stavros Daskos.
3 min read · 21 September 2017
Skidmore Development Group and SouthPac Partners have joined forces in the inaugural deal of both firms, investing in a maker of gourmet cinnamon rolls. Skidmore and SouthPac last week announced their acquisition of Calgary's Cinnaroll Bakeries for an undisclosed sum. The plan is to build on the company's 30 years of growth, Skidmore Managing Director and CFO Jas Boparai and SouthPac Managing Partner Jeremy South told PE Hub Canada. The Cinnaroll deal officially introduces Skidmore, the family office of British Columbia's Thomas Skidmore, and SouthPac, a Vancouver private equity firm, to the market.
3 min read · 20 September 2017
