Private Equity
Home Capital Group Inc said a third party intends to buy up to $1.5 billion in mortgages, Reuters reported. The third party has indicated its non-binding intention to buy as much as $1 billion in uninsured mortgages and to buy, or accept, commitments for up to $500 million in insured mortgages, the company said. Earlier this month, Reuters reported several Canadian and U.S. private equity firms were considering bids to acquire Home Capital, a Toronto-based alternative mortgage lender. They included Apollo Global Management, Blackstone Group, Brookfield Asset Management and Fairfax Financial Holdings.
2 min read · 09 May 2017
Dicom Transportation Group, a Canadian portfolio company of U.S. private equity firm Wind Point Partners, has sold its Extra Express division to St. George Logistics (STG), which is also majority owned by Wind Point. No financial terms were disclosed. Extra Express, a U.S. provider of warehousing and related delivery services, was bought by Dicom in 2015. STG will leverage the company's capabilities to introduce local last-mile delivery to its import-export services, Wind Point said. Montréal-based Dicom, acquired by Wind Point in 2014, is an expedited transportation and logistics company. It will focus on its "core footprint" as a result of the deal.
4 min read · 09 May 2017
Home Capital Group Inc (TSX: HCG) has appointed Claude Lamoureux and Paul Haggis to its board of directors. Lamoureux is the former President and CEO of Ontario Teachers' Pension Plan, a role he held between 1990 and 2007. Haggis is the former CEO of Ontario Municipal Employees Retirement System (OMERS), a role he held between 2003 and 2007. Home Capital, a Toronto-based alternative mortgage lender, is currently the focus of potential acquisition bids by Canadian and U.S. private equity firms, according to a Reuters report.
6 min read · 09 May 2017
Roustan Capital has acquired Supreme Brands LLC, the owner of hockey equipment brands Torspo and Christian. No financial terms were released. Roustan Capital, the Canadian investment arm of Graeme Roustan, former chairman of Performance Sports Group Ltd, said it will announce future plans for Torspo and Christian in the months ahead. Performance Sports, a U.S. maker of sports equipment and apparel, was acquired in March by Power Corp's Sagard Capital Partners and Fairfax Financial Holdings for US$575 million.
3 min read · 08 May 2017
Chuck Rifici, CEO of Canadian cannabis private equity firm Nesta Holding, has launched Cannabis Wheaton Income Corp, the "world's first" cannabis streaming company. Cannabis Wheaton will provide financing and advice to streaming partners, consisting of licensed cannabis producers, in exchange for a minority interest and allocation of the producer's yield at an agreed upon price. The firm said it has so far entered into agreements with 14 streaming partners in Canada. Karamdeep Nijjar, partner at Canadian venture capital firm iNovia Capital, sits on the company's advisory board.
3 min read · 08 May 2017
QuadReal Property Group, a real estate company formed last year by British Columbia Investment Management Corp (bcIMC), has invested US$600 million in a joint venture to acquire, develop and manage student housing at universities across the United States. The joint venture is being undertaken with CA Student Living (CASL), the student housing investment arm of CA Ventures, and GI Partners, a U.S. private equity and real estate firm. The initial portfolio includes 10 properties developed and managed by CASL. Vancouver-based QuadReal oversees bcIMC's $18 billion-plus in real estate assets.
4 min read · 08 May 2017
A consortium led by U.S. private equity firm TPG Capital made a A$2.2 billion (US$1.63 billion) cash proposal to acquire Fairfax Media Ltd's metropolitan newspapers and Domain real estate classifieds unit, Reuters reported, citing a statement by the Australian media group. The proposal would involve shareholders retaining scrip exposure to the company's regional and New Zealand newspaper assets as well as its radio and digital streaming divisions. Fairfax, owner of The Sydney Morning Herald and The Australian Financial Review, said its board of directors was reviewing the proposal from the TPG-led consortium, which also included Ontario Teachers' Pension Plan Board.
2 min read · 08 May 2017
Canadian specialty foods producer SunOpta Inc (Nasdaq: STKL, TSX: SOY) has agreed to waive a standstill provision, allowing Oaktree Capital Management to acquire more of the company's common shares. The deal is part of a previously announced agreement that restricts Oaktree's total investment to 19.99 percent of all common shares. Last October, Oaktree invested $85 million in exchangeable preferred shares, intended to help Toronto-based SunOpta reduce its second lien debt and increase flexibility.
3 min read · 08 May 2017
Canada's Hudson's Bay Co has hired a debt restructuring adviser to review potential options for combining its business with debt-laden U.S. department store operator Neiman Marcus Group, sources told Reuters. The move is the clearest indication yet that Neiman Marcus' US$4.7 billion debt pile poses significant challenges to a merger between Hudson's Bay, owner of the Lord & Taylor and Saks Fifth Avenue retail chains, and private equity-owned Neiman Marcus. Hudson's Bay has now tapped investment bank Evercore Partners Inc, and has asked it to come up with ways that the two companies can combine without Hudson's Bay assuming the full burden of Neiman Marcus' debt, the sources said. Ares Management LP and Canada Pension Plan Investment Board acquired Neiman Marcus in 2013 for US$6 billion.
4 min read · 08 May 2017
Centaur Gaming LLC, a privately owned U.S. casino and horse racing company, is exploring a sale that could value it at more than US$1 billion, including debt, sources told Reuters. Indianapolis-based Centaur is working with investment bank Deutsche Bank AG on the sale process, the sources said. Centaur is backed by Canadian private equity firm Clairvest Group, which invested in 2010. Last week, the Toronto firm made its 11th investment in the global gaming industry, putting US$73.7 million to work in Head InfoTech India Pvt Ltd.
2 min read · 05 May 2017
