Private Equity
The private equity group of Brookfield Asset Management has closed its acquisition of the gas station unit of Loblaw Cos Ltd (TSX: L). The deal, announced in April, saw Brookfield pay the Canadian grocery and pharmacy retailer about $540 million for the asset, which includes 213 gas stations and associated convenience kiosks adjacent to Loblaw-owned stores. Brookfield said the gas stations will be rebranded as Mobil as part of an agreement with Imperial Oil Ltd. Expected to commence this fall, the rebranding marks the introduction of the Mobil fuel brand into Canada.
3 min read · 17 July 2017
Atis Group Inc has acquired Fenestration Pro-Tech, a window and door retailer based in Stanbridge Station, Québec. No financial terms were disclosed. Atis, a Longueuil, Québec-based manufacturer, distributor and marketer of windows and doors, said the deal is in line with its strategy of acquiring retailers in Québec and across Canada. Founded in 2004, Atis was bought in 2015 by a consortium of Fonds de solidarité FTQ, Capital régional et coopératif Desjardins and Fondaction CSN in partnership with senior management. The company was previously backed by U.S. private equity firm Cyprium Partners.
3 min read · 17 July 2017
Valeant Pharmaceuticals International Inc said it would sell its Obagi Medical Products business for US$190 million in cash, as part of the Canadian drugmaker's efforts to cut down its debt, Reuters reported. Valeant, which bought the Irvine, California-based Obagi for about US$344 million in 2013, will sell the business to Haitong International Zhonghua Finance Acquisition Fund I LP. The Obagi Medical Products unit includes skin-care products designed to help minimize the appearance of premature skin aging, skin damage and hyperpigmentation. The deal is expected to close in the second half.
1 min read · 17 July 2017
Sandvine Corp said it had terminated a deal with U.S. private equity firm Vector Capital and accepted a higher offer from a unit of Francisco Partners and Procera Networks Inc, valuing the Canadian network equipment maker at about $562 million, Reuters reported. U.S. private equity firm Francisco and Procera, a Fremont, California-based networking equipment maker, will pay $4.40 per Sandvine share. Sandvine will be merged with Procera, whose Chief Executive Lyndon Cantor will lead the combined entity. Earlier this month, Sandvine had accepted an amended offer from Vector Capital's unit, Scalar Acquireco Corp, for $4.15 per share, valuing Sandvine at about $529 million.
2 min read · 17 July 2017
Oaktree Capital Management LP, the largest shareholder of Tembec Inc, said it would vote against Rayonier Advanced Materials Inc's US$807 million acquisition of the Canadian forest products company, Reuters reported. The U.S. investor, which owns 19.9 percent of Tembec, called on Rayonier to sweeten its bid, saying: "If the offer is not increased, we believe Tembec shareholders would be better off...independent." Jacksonville, Florida-based Rayonier, which supplies cellulose found in cellphones, computer screens and pharmaceutical drugs, said in May it would buy Tembec to expand into packaging and forest products.
1 min read · 14 July 2017
Canada Pension Plan Investment Board (CPPIB) has agreed to acquire a 50 percent equity stake in Milton Park, a British business, science and technology park. CPPIB agreed to pay about $330 million (£200 million) to Hermes Investment Management for the interest. MEPC Ltd, a London-based property developer and asset manager, will continue to oversee Milton Park under the new ownership arrangement. MEPC said CPPIB's investment will support the continued expansion of businesses in the 250-acre location.
5 min read · 14 July 2017
Two leading Canadian pension funds have agreed to sell their stakes in Britain's High Speed 1 (HS1) rail project to a consortium of funds including HICL Infrastructure and South Korea's National Pension Service, Reuters reported. The deal valued HS1 at more than 3 billion pounds (US$3.9 billion), two sources said. The deal was struck with Borealis Infrastructure, the infrastructure investment manager of the Ontario Municipal Employees Retirement System (OMERS), and Ontario Teachers' Pension Plan, which have held their stake since 2010. HS1 operates the 109-kilometre high-speed rail line connecting London St Pancras International station with the Channel Tunnel.
2 min read · 14 July 2017
Borealis Infrastructure, the infrastructure investment arm of the Ontario Municipal Employees Retirement System (OMERS), and Ontario Teachers’ Pension Plan have agreed to sell HS1 Ltd, the owner and operator of High Speed 1, a U.K. high-speed rail system. No financial terms were released. The buyer is a consortium led by InfraRed Capital Partners and Equitix Investment Management. Borealis and Ontario Teachers’ bought the 30-year concession for the HS1 network in 2010 for £2.1 billion ($3.5 billion). The network connects London St Pancras International station with the Channel Tunnel.
6 min read · 14 July 2017
Japanese information technology provider NEC Corp is looking at buying British software company Civica for 900 million pounds (US$1.2 billion) and has hired advisors to work on an offer, Reuters reported, citing a Sky News story. An auction for Civica, one of the United Kingdom's biggest public sector software providers, began several weeks ago and has drawn initial offers from three private equity firms: London-based BC Partners, Boston-based Berkshire Partners and the Swiss-based Partners Group, Sky News said. OMERS Private Equity (OPE) acquired Civica from 3i Group in 2013 for 390 million pounds (US$606 million). Reuters reported in May that OPE hired Goldman Sachs to assist with selling the company.
2 min read · 14 July 2017
Canada's Brookfield Asset Management has signed an exclusivity agreement to acquire power transmission lines owned by Brazil's J&F Investimentos SA, which is selling off assets to pay a record corruption-related fine, sources told Reuters. Brookfield is offering up to 1 billion reais (US$311 million) for the majority stake that J&F's electricity unit Ambar Energia Ltda has in an 880 kilometre-long grid of transmission lines, one source said. J&F is accelerating the pace of talks to sell assets as creditors pressure leading shareholders to renegotiate more than 30 billion reais their companies amassed in recent years.
1 min read · 13 July 2017
