Private Equity
U.S. private equity firm Milestone Partners has sold Precision Partners Holding Co, a Canadian automotive tooling and hot-and-cold stamped solutions provider, to AK Steel Corp (NYSE: AKS). The purchase price was US$360 million. Founded in 1955, Windsor, Ontario-based Precision Partners serves global original equipment manufacturers and Tier 1 clients. It was acquired by Milestone via a carve-out deal in 2013. During Milestone’s ownership period, the company's revenue and EBITDA increased at compound annual growth rates of 24 percent and 32 percent, respectively, Milestone said. Based in West Chester, Ohio, AK Steel is a producer of flat-rolled steel.
3 min read · 11 August 2017
Husky Injection Molding Systems Ltd, a Canadian supplier of injection molding equipment to the global plastics industry, has hired investment bank Goldman Sachs Group Inc to explore a sale that it hopes could value it at close to US$4 billion, including debt, sources told Reuters. U.S. buyout firm Berkshire Partners LLC and the private equity arm of Ontario Municipal Employees Retirement System (OMERS) have asked Goldman Sachs to run the auction for the company. Based in Bolton, Ontario, Husky makes equipment that is used to produce goods for the beverage packaging, closures, thinwall packaging, medical, and consumer electronics markets. Berkshire and OMERS acquired Husky for US$2.1 billion in 2011 from Canadian buyout firm Onex Corp.
2 min read · 11 August 2017
Canadian specialty lender Callidus Capital Corp has denied recent allegations made in a Wall Street Journal story about the firm and its majority investor, Catalyst Capital Group. The story said whistleblowers filed statements with Ontario regulators accusing Callidus and Catalyst of fraud. The firms are accused of inflating the value of assets and deceiving borrowers on the terms of loans. Callidus said it "knows of no legitimate basis for any whistleblower complaint" and called the Wall Street Journal story "completely false." It added that the individuals behind the complaints may be abusing the whistleblower process.
4 min read · 10 August 2017
Davis-Standard LLC has agreed to acquire Maillefer International Oy, a Vantaa, Finland-based provider of wire, cable, pipe and tube production technologies. No financial terms were released for the deal, which is expected to close in August or September. Davis-Standard, a Pawcatuck, Connecticut-based maker of plastic and rubber extrusion and converting systems, said the combination of the brands will create a "market leading global extrusion systems and services provider." Davis-Standard is a portfolio investment of ONCAP, the mid-market platform of Canadian private equity firm Onex Corp. ONCAP acquired the company in 2011.
3 min read · 10 August 2017
Caisse de dépôt et placement du Québec (CDPQ) has agreed to acquire a significant minority stake in Sebia Group, a Lisses, France-based in-vitro diagnostics company focused on oncology, genetic haemoglobin and metabolic disorders. No financial terms were released. CDPQ is buying the position from European private equity firms Astorg Partners and Montagu Private Equity. Astorg and Montagu jointly acquired Sebia in 2014. CDPQ Head of Private Equity Stéphane Etroy said the Canadian pension fund's investment will "support the company as it expands into new opportunities in the diagnostics sector."
4 min read · 10 August 2017
A consortium including Macquarie Group's infrastructure unit and a Canadian pension fund will pay A$1.605 billion (US$1.27 billion) to run the state of South Australia's land registry and management services, Reuters reported. Land Services SA, a joint venture between Macquarie Infrastructure & Real Assets (MIRA) and the Public Sector Pension Investment Board (PSP Investments) will manage the service for the next 40 years. It will take responsibility for land registry and property valuation services in the state, and will also have exclusive rights to commercialize related data. As part of the deal, Land Services will establish an innovation hub in Adelaide, invest in information technology, communications equipment and software, and work with local digital startups.
2 min read · 10 August 2017
Canada Goose Holdings Inc reported a smaller-than-expected quarterly loss as the luxury apparel retailer sold more products across its sales platforms, sending its shares up 5.3 percent on the Toronto Stock Exchange, Reuters reported. After a red hot debut in March, Canada Goose has been opening stores internationally and increasing its presence on e-commerce sites to meet a growing demand for its jackets and parkas. Canada Goose raised about $390 million from its initial public offering in March. U.S. private equity firm Bain Capital, which acquired the company in 2013, continues to be its leading shareholder.
2 min read · 10 August 2017
U.S. hedge fund manager Magnetar Capital has agreed to invest $200 million in Painted Pony Energy Ltd (TSX: PONY), a Calgary-based natural gas producer. The investment will consist of $150 million of senior unsecured notes and $50 million of subordinated convertible debentures. Painted Pony said it will use the proceeds to repay debt and for other priorities. Earlier this year, the company acquired natural gas assets operator UGR Blair Creek Ltd. As a result of the $277 million deal, UGR's private equity investors ARC Financial Corp and EnCap Investments each took a 12.38 percent interest in Painted Pony.
10 min read · 10 August 2017
Carmanah Technologies Corp (TSX: CMH) has completed the sale of Go Power!, a mobile power solutions provider, to Valterra Products LLC, a U.S. fluid control products supplier to the recreational vehicle, pool and spa, and industrial end markets. Carmanah, a Victoria, British Columbia-based manufacturer of signaling and solar lighting products, said the sale generated US$19.5 million, subject to adjustments and hold-backs. Mission Hills, California-based Valterra is a portfolio company of G. Scott Capital Partners, a U.S. family office. Scott Capital led a recapitalization of Valterra in 2013.
3 min read · 09 August 2017
CBRE Group Inc (NYSE: CBG) has completed its acquisition of a majority stake in Caledon Capital Management, a Toronto-based portfolio management and advisory firm specializing in infrastructure and private equity investments. No financial terms were disclosed for the deal, which rebrands Caledon as CBRE Caledon Capital Management and makes it a separate entity within CBRE Global Investors, CBRE's investment management unit. Caledon, which oversees $9 billion in assets, was founded in 2007 by Partner David Rogers. In June, Rogers told PE Hub Canada the acquisition will broaden his firm's client list and increase its geographic footprint.
4 min read · 09 August 2017
