Private Equity
Fairfax Financial Holdings Ltd has closed its acquisition of Allied World Assurance Co Holdings AG, a Swiss provider of property, casualty and specialty insurance and reinsurance solutions. The deal, announced late last year, is valued at US$4.9 billion. As a result, Allied World said it would delist its shares from the New York Stock Exchange. Fairfax, a Toronto-based financial holding company, partnered in the acquisition with the Ontario Municipal Employees Retirement System (OMERS), which agreed to invest US$1 billion, and Alberta Investment Management Corp (AIMCo), which agreed to invest US$500 million.
3 min read · 07 July 2017
Janice Fukakusa, a former Royal Bank of Canada chief financial officer, was appointed by Ottawa as the first chairperson of Canada's new infrastructure bank, Reuters reported. The Liberal government announced last November it would set up the agency to facilitate private investment in such projects as new roads and bridges in order to supplement government investment with funding from investors such as pension and sovereign wealth funds. The creation of the new entity is part of a broader plan to invest $180 billion over 12 years in improving the country's infrastructure.
1 min read · 06 July 2017
Sears Canada Inc on Thursday sought court approval for its restructuring efforts, two weeks after the Canadian retailer filed for creditor protection, Reuters reported. The company said it also sought court approval for a sale and investment solicitation process. Sears Canada is controlled by U.S. hedge fund ESL Investments, which is led by Chairman and CEO Eddie Lampert.
1 min read · 06 July 2017
Live performance company Cirque du Soleil has bought Blue Man Productions, a New York-based live entertainment company best known for its Blue Man Group show, performed in more than 20 countries since 1991. No financial terms were disclosed. Montréal-based Cirque said the deal adds to its audience pool and is in line with a global expansion plan intended to help diversify its offering beyond circus arts. Cirque was acquired two years ago by a consortium led by U.S. private equity firm TPG Capital. The deal, reportedly valued at US$1.5 billion, included investments by Fosun International and Caisse de dépôt et placement du Québec.
4 min read · 06 July 2017
The Home Depot (NYSE: HD) has agreed to acquire Compact Power Equipment Inc, a Fort Mill, South Carolina-based provider of equipment rental and maintenance services, for US$265 million in cash. The seller in the deal is Canadian private equity firm Kilmer Capital Partners. Kilmer partnered with another Canadian investor to acquire a majority interest in Compact Power in 2012. It also helped the company raise US$50 million in asset-based financing to support growth. Home Depot, a U.S. home improvement specialty retailer, said the acquisition will enhance its equipment and tool rental offerings.
3 min read · 06 July 2017
Oaktree Capital Management LP has entered the race to buy control of Renova Energia SA with a proposal that would inject fresh capital and help refinance part of the Brazilian renewable energy firm's debt maturing this year, sources told Reuters. Oaktree would pay 170 million reais (US$51 million) for Light SA's 16 percent stake in Renova and spend another 1.2 billion reais to dilute Renova's controlling bloc, the sources said. Los Angeles-based Oaktree, the world's biggest distressed debt investor, is competing with Canada's Brookfield Asset Management Inc for the company. Renova this week confirmed a July report by Reuters that Brookfield has made a non-binding proposal for control.
3 min read · 06 July 2017
OPTrust has made a strategic investment in James Evans & Associates Ltd (JEA), a Victoria, British Columbia-based provider of pension administration software and services in Canada and the United States. No financial terms were released. Jim Evans, president and CEO of JEA, which has for two decades been a service provider to OPTrust, said the deal will support the company and "help shape JEA's products to fulfill market needs." OPTrust, which oversees $19 billion in net assets, invests on behalf of OPSEU Pension Plan. In March PE Hub Canada interviewed Managing Director Sandra Bosela, who heads OPTrust's global private equity group.
3 min read · 06 July 2017
Canadian mergers and acquisitions rose about 13 percent to $120.5 billion in the first half of 2017, driven by big-ticket energy deals and robust cross-border activity, Reuters reported, citing Thomson Reuters data released this week. Despite strong initial public offerings, overall equity capital deals fell 12 percent to $26.9 billion in the first half from a year ago, the data showed. strong>JPMorgan, Toronto-Dominion Bank and Goldman Sachs took the top three spots in the M&A league tables rankings, while Royal Bank of Canada, TD and Bank of Montreal were the top three advisers on Canadian equity issues in the first half of 2017.
2 min read · 06 July 2017
OMERS Private Equity (OPE) has agreed to acquire a minority interest in National Veterinary Associates (NVA), an Agoura Hills, California-based owner and operator of veterinary hospitals and pet boarding and daycare centres in the United States, Canada, Australia and New Zealand. No financial terms were released for the deal, which is expected to close in the third quarter. OPE is partnering with NVA's management and U.S. private equity firm Ares Management, the majority shareholder. Ares acquired the business in 2014. Founded in 1996, NVA has 502 locations and more than 1,800 veterinary affiliations.
4 min read · 06 July 2017
U.S. private equity firm Swander Pace Capital has sold Lavo Inc, a Montréal-based maker and marketer of laundry detergent, household cleaners, fabric softeners and bleach, to KIK Custom Products Inc. No financial terms were disclosed. Lavo, which distributes and markets under owned brands La Parisienne, Hertel, Springtime, Old Dutch, Arctic Power, and ABC, was acquired by Swander Pace in 2008. KIK, a Concord, Ontario-based maker of consumer packaged goods, is owned by U.S. private equity firm Centerbridge Partners. Centerbridge bought it from CI Capital Partners in 2015. Earlier this year, Swander Pace sold Kicking Horse Coffee Ltd to Luigi Lavazza SpA.
3 min read · 06 July 2017
