Private Equity
Busy Bees Holdings Ltd has closed its acquisition of BrightPath Early Learning Inc (TSX-V: BPE), a Calgary-based early learning and childcare provider. The $145 million deal, announced in May, will result in BrightPath's delisting from TSX Venture Exchange today. Founded in 2010, BrightPath grew to become an operator of 78 locations in Canada. Busy Bees, the United Kingdom’s largest nursery chain, was acquired by Ontario Teachers' Pension Plan in 2013.
3 min read · 28 July 2017
A consortium led by Hong Kong's CK Infrastructure said it would buy German metering and energy management group Ista in a deal valued at up to US$5.25 billion, Reuters reported. CKI, part of conglomerate CK Hutchison Holdings, is acquiring Ista from private equity firm CVC Capital Partners. Canada Pension Plan Investment Board holds a minority stake in Ista, obtained in 2013 as part of CVC's acquisition. CPPIB reportedly teamed up with Blackstone Group to bid for the whole company.
2 min read · 27 July 2017
Mitel Networks Corp (TSX: MNW) (Nasdaq: MITL) has agreed to acquire ShoreTel Inc (Nasdaq: SHOR), a U.S. provider of business communication solutions. The cash deal reflects an equity value of about US$530 million and an enterprise value of about US$430 million. Ottawa-based Mitel said the acquisition, expected to close in the third quarter, will create the second-largest player in the unified-communications-as-a-service market. Mitel, a portfolio investment of Francisco Partners and Wesley Clover International, tried two years ago to buy ShoreTel, but withdrew its bid.
6 min read · 27 July 2017
The credit affiliate of Canada Pension Plan Investment Board has agreed to provide a subordinated facility of about $408 million (£250 million) to intu Properties plc, a British owner, manager and developer of regional shopping centres. The facility will support the company's business plans and is indirectly secured by intu Trafford Centre, a 1.9-million-square-foot shopping centre in Manchester, United Kingdom. CPPIB and intu have joint ownerships in shopping centres in Spain, including intu Asturias in Oviedo and Puerto Venecia in Zaragoza.
4 min read · 27 July 2017
Canada Pension Plan Investment Board has acquired rights to a portion of future royalties in venetoclax, a cancer treatment drug, from Australia's Walter and Eliza Hall Institute of Medical Research. CPPIB agreed to pay US$250 million in cash upfront and make potential milestone payments of up to US$75 million. The Institute will retain partial royalties in the treatment. CPPIB Managing Director John Graham said the deal is an "opportunity to expand CPPIB's global intellectual property program through the acquisition of royalty rights for this proven anti-cancer treatment." CPPIB has committed about $3 billion to IP investments since 2011.
3 min read · 27 July 2017
Caisse de dépôt et placement du Québec has acquired all of the Class A common shares of Boralex Inc (TSX: BLX) held by Cascades Inc for $287.5 million. The purchase represents 17.3 percent of the outstanding shares of Boralex, a Kingsey Falls, Québec-based developer, builder and operator of wind and other renewable energy power facilities. It entitles the Canadian pension fund to appoint two board members and have pre-emptive rights concerning future share issuances. As part of the deal, Boralex and the Caisse agreed to explore project investment opportunities. Founded in 1995, Boralex is led by President and CEO Patrick Lemaire.
3 min read · 27 July 2017
German sportswear group Adidas AG has agreed to sell its CCM ice hockey brand to Canadian private equity firm Birch Hill Equity Partners for US$110 million ($138 million) as it focuses more strongly on its core Adidas and Reebok brands, Reuters reported. Adidas has shaken up its business in the United States and shed non-core businesses to regain ground lost to Nike Inc, outpacing its rival's sales growth in key markets this year. Birch Hill will pay most of the purchase price for CCM in cash and the rest in the form of a secured note, Adidas said. Based in Montréal, CCM is a designer, manufacturer and marketer of ice hockey equipment and related apparel. It was acquired by Reebok in 2004.
2 min read · 27 July 2017
Canadian private equity firm Birch Hill Equity Partners has agreed to acquire the CCM ice hockey brand of Adidas Group, a German sportswear company. Birch Hill agreed to pay US$110 million for the business, the majority of which will be paid in cash and the remainder in the form of a secured note. The deal is expected to close in the third quarter of 2017. Headquartered in Montréal, CCM is a manufacturer of ice hockey equipment. It was acquired by Reebok, now a subsidiary of Adidas, in 2004. Earlier this year, Bauer ice hockey gear maker Performance Sports Group Ltd was bought by Sagard Capital Partners and Fairfax Financial Holdings.
3 min read · 27 July 2017
The private equity group of Brookfield Asset Management has agreed to acquire 60 percent of Teekay Offshore Partners LP (NYSE: TOO), a provider of marine solutions focused on production and logistics to the offshore oil industry. Brookfield will pay about US$750 million for the stake. It will partner with Teekay Offshore's parent, Teekay Corp (NYSE: TK), a Vancouver-based marine energy specialist, which will retain a 14 percent interest in the affiliate. As part of the deal, Brookfield will acquire 49 percent of Teekay Offshore's general partner, with an option to buy an additional 2 percent. With the deal's close, it will appoint four directors to the general partner's board.
4 min read · 27 July 2017
Calgary oil and gas company Canadian International Oil Corp (CIOC) has secured an equity commitment of $150 million from U.S. energy private equity firm Riverstone Holdings, CIOC's largest investor. The deal, which adds to the $200 million invested by Riverstone in 2014, will support development of the company's Montney resource base in Alberta. CIOC also announced the issue of $208 million in unsecured senior notes to affiliates of GSO Capital Partners, FS Investments, BlackRock Advisors and Kayne Anderson Capital. The proceeds will be used in part to redeem a secured second-lien term loan and repay borrowings under the company's credit facility.
5 min read · 26 July 2017
