Private Equity
The British Columbia Investment Management Corp (bcIMC) reported a 12.4 percent annual return in fiscal 2017, versus a combined market benchmark of 11.7 percent. This resulted in $680 million in added value, bringing bcIMC's total assets under management to $13.6 billion. Performance was supported by infrastructure, private equity, real estate and renewable resources, all of which delivered above-benchmark returns. The pension fund committed $9.9 billion to illiquid assets in the fiscal year. Private equity's allocation stood at $7.8 billion or 5.8 percent of the total.
3 min read · 19 July 2017
Tacora Resources Inc, an iron ore mining and development company, has acquired the assets of the Scully Mine located in Wabush, Newfoundland and Labrador. No financial terms were released for the deal, which was struck with Wabush Iron Co Ltd, Wabush Resources Inc and Wabush Lake Railway Co Ltd under a court-supervised process. Tacora said it is working with stakeholders, including the provincial government and union, to restart the mine. The Grand Rapids, Minnesota-based company said its financial partner is Proterra Investment Partners, a U.S. resource private equity firm.
3 min read · 19 July 2017
Citron Hygiene has acquired Chemsyn Chemical Corp, a Concord, Ontario-based manufacturer and distributor of commercial dish-washing, laundry and housekeeping products and services. No financial terms were disclosed. Citron said the deal expands its service offering in the ware-wash and chemical solutions space and enhances its presence and scale in Ontario. It follows the acquisitions of Alpine Jan-San and Workplace Essentials earlier this year. Led by President and CEO Peter Farrell, Toronto-based Citron, formerly known as Cannon Services, was bought in 2016 by Canadian private equity firm Birch Hill Equity Partners.
3 min read · 19 July 2017
Canadian private equity firm Clairvest Group has agreed to sell CRS Contractors Rental Supply LP, a provider of construction equipment rental and related merchandise, for $275 million plus a potential earn-out. The buyer is Sunbelt Rentals, a North American business affiliated with Ashtead Group plc, a U.K. industrial equipment rental provider. Clairvest, which invested in Kitchener, Ontario-based CRS in 2013, said its proceeds from the sale are expected to be about $31.7 million, compared to a recent carrying value of $28.8 million. The deal is expected to close in the weeks ahead. Founded in 2000, CRS is led by President and CEO Brad Muter.
2 min read · 19 July 2017
Now is an opportune time for owners to sell their companies. Valuations through Q3 2016 are at the highest level since at least 2010. Private equity dry powder is at record levels and PE firms are under pressure to invest. These and other dynamics combine to put sellers in a strong position. To avoid squandering that advantage, Torys LLP's Stefan Stauder and Katherine Spenner offer five points they believe sellers may want to keep in mind to preserve leverage, and to maximize deal proceeds and favourable terms.
4 min read · 19 July 2017
U.S. hedge fund manager Restructuring Capital Associates (RCA) said it expects to vote its shares of Tembec Inc (TSX: TMB) against the proposed merger with Rayonier Advanced Materials Inc (NYSE: RYAN). RCA, Tembec's second largest shareholder with a 17.1 percent interest, said it supports the Canadian paper and cellulose pulp maker but agrees with the arguments made by Oaktree Capital Management against Rayonier's acquisition. The deal, announced in May, is valued at US$807 million. Shareholders will vote on July 27.
2 min read · 18 July 2017
U.K. private equity firm 3i Group has sold Mémora Group, an Iberian funeral services provider, to Ontario Teachers’ Pension Plan. The purchase price was not disclosed; however, 3i said the deal generated proceeds of £117 million ($194 million). Based in Barcelona, Mémora operates 115 parlours, 24 crematoriums, 13 cemeteries and 91 retail outlets in the Iberian Peninsula. It was bought by 3i in 2008. Ontario Teachers' Senior Managing Director Jo Taylor said Mémora "presents a unique opportunity to invest in a sector we have extensive experience in." Earlier in 2017, the pension fund acquired French funeral services provider OGF.
4 min read · 18 July 2017
PayPal Holdings Inc (Nasdaq: PYPL) has wrapped up its buy of TIO Networks Corp (TSX-V: TNC), a Vancouver multi-channel bill payment processing company. The deal, announced in February, saw PayPal acquire all of the company's outstanding shares for about $302 million (US$238 million) in cash. TIO will operate as a separate service within PayPal under the leadership of Hamed Shahbazi, TIO's founder and former chairman and CEO. TIO's private equity and hedge fund investors included Core Innovation Capital, Napier Park Financial Partners, Edison Partners, Inter-Atlantic Advisors and Inductive Capital.
4 min read · 18 July 2017
Tembec Inc's largest shareholder, Oaktree Capital Management LP, asked other shareholders to reject Rayonier Advanced Materials Inc's deal to buy the Canadian paper and cellulose pulp maker, saying it was a "flawed" sale process, Reuters reported. Oaktree, which owns a 19.9 percent stake in Montréal-based Tembec, said there is a significant value gap between Rayonier's offer price and the "real value" of Tembec. Rayonier, which makes high-value cellulose specialties fibres, said in May it would buy Tembec for US$807 million to expand into packaging and forest products. Oaktree, which last week decided to vote against the transaction, said the deal in its current form is unlikely to close.
2 min read · 18 July 2017
Canadian specialty finance firm Crown Capital Partners has increased the size of its fourth special situations fund to $225 million. Crown Capital Fund IV, which initially closed in September 2015, received $50 million more in committed capital. The fund has a maximum limit of $300 million, which may be reached through additional closings expected up until September 2018. As reported by PE Hub Canada in 2015, Crown is pursuing a two-track fundraising process that includes public sources. To date, Fund IV has invested $190 million of debt and quasi-equity in nine mid-market deals.
2 min read · 17 July 2017
