Private Equity
U.S. specialty pet retailer PetSmart Inc has acquired Chewy Inc, an online retailer of pet food and products based in Dania Beach, Florida. No financial terms were released; however, Recode reported the deal's value to be US$3.35 billion. It is expected to close later this year. PetSmart, which is based in Phoenix, Arizona, said Chewy’s e-commerce model complements its store footprint and other offerings. PetSmart was acquired in 2015 by a consortium led by BC Partners. Caisse de dépôt et placement du Québec, a Canadian pension fund, was among the investors.
5 min read · 19 April 2017
The Fonds de solidarité FTQ has made an investment in the Canadian subsidiary of France's Chocmod, a global manufacturer and distributor of cocoa truffles. The deal, the financial terms of which were not released, provided the Fonds will a minority stake in the business. Its investment, supported by a loan from National Bank of Canada, will help finance Chocmod's continued growth in North America from its base in Saint-Jean-sur-Richelieu, Québec. The company's plant in Saint-Jean-sur-Richelieu was opened in 2011 and exports truffle products to the United States.
3 min read · 19 April 2017
Canadian grocery and pharmacy retailer Loblaw Cos Ltd said it would sell its gas station business to asset manager Brookfield Business Partners LP for about $540 million, Reuters reported. The deal, which includes Loblaw's 213 retail gas stations and convenience stores adjacent to the gas stations across Canada, is expected to close in the third quarter of 2017. Brookfield Business Partners was spun out of Toronto-based Brookfield Asset Management last year. The listed vehicle allows Brookfield shareholders to invest directly in the firm's private equity portfolio.
2 min read · 19 April 2017
Source Energy Services Ltd (TSX: SHLE) has closed its acquisition of Sand Products Wisconsin LLC for US$45 million. Located near Blair, Wisconsin, Sand Products' assets include a Northern White frac sand mine, processing facility and unit train capable load-out facility. Source, a Calgary-based proppant sourcing and oilfield logistics company, said the buy will "significantly increase" its frac sand production volumes. Source, backed by Canadian private equity firm TriWest Capital Partners since 2013, went public this month, raising $175 million. It planned to use part of the IPO's proceeds for the acquisition.
2 min read · 18 April 2017
U.K. financial software provider Misys has launched a jumbo US$5.7 billion-equivalent financing backing its merger with Canadian fintech company DH Corp, Reuters reported. The deal will bring much-desired supply to the loan market on both sides of the Atlantic during a period of subdued new issuance and rampant re-pricings. U.S. private equity firm Vista Equity Partners said in March it would buy Toronto-based DH Corp for $4.8 billion and combine it with Misys, which abandoned plans to list on the London stock market in 2016, blaming shaky market conditions.
2 min read · 18 April 2017
Balmoral Wood Litigation Finance has secured more than US$25 million ($33 million) in committed capital in the first close of its debut litigation-finance fund. In a newsletter issued last month, the Toronto investor said Balmoral Wood Commercial Advocate Fund I held an initial close in February. The fund, which targets emerging opportunities in the global commercial litigation-finance industry, is targeted to raise US$150 million ($200 million), PE Hub Canada reported last October. It is being marketed to a range of limited partners, including family offices, pension funds and wealthy investors.
1 min read · 17 April 2017
Williams Partners LP said on Monday it would sell its stake in a unit that owns 88.46 percent of an olefins plant in Louisiana to Nova Chemicals Corp for US$2.1 billion in cash, as part of the pipeline operator's efforts to focus on natural gas, Reuters reported. The company said its units would enter into long-term supply and transportation agreements with Nova after the deal closes, expected by this summer. Calgary-based Nova Chemicals is owned by International Petroleum Investment Co, set up by the Abu Dhabi government to invest in the energy and related sectors.
2 min read · 17 April 2017
The proposed acquisition of TIO Networks Corp (TSX-V: TNC), a Vancouver multi-channel bill payment processing company, by PayPal Holdings Inc (Nasdaq: PYPL) has received final court approval. The transaction, announced in February, has an equity value of about $304 million. It is expected to be completed in the second half of 2017. TIO is backed by U.S. private equity firms and hedge fund investors. They include Core Innovation Capital, Napier Park Financial Partners, Edison Partners, Inter-Atlantic Advisors and Inductive Capital.
3 min read · 17 April 2017
Ontario Teachers' Pension Plan has acquired a 33 percent stake in OGF, a funeral services provider in France, from Pamplona Capital Management. The deal, the terms of which were not disclosed, increased Ontario Teachers' interest to 74 percent. Pamplona acquired OGF in 2013, and in 2015 sold a 41 percent stake to Ontario Teachers'. Based in Paris, OGF has a network of 1,100 branches, 550 funeral homes, 72 crematoria and a brands portfolio. Ontario Teachers' and Pamplona said they supported "multiple" acquisitions by the company in recent years, which helped grow the portfolio and improve operations.
4 min read · 17 April 2017
Privet Fund Management has formally indicated an interest in acquiring Norsat International Inc (TSX: NII), a Richmond, British Columbia provider of customized communication solutions for remote and challenging applications. Privet, a U.S. hedge fund manager, said it is prepared to buy shares not already owned for US$11 per share in cash, which exceeds a US$10.25 per-share offer made by Hytera Communications Co Ltd last month. Privet, Norsat's largest investor with a 17.6 percent interest, said the proposed Hytera deal is not in the best interests of shareholders.
3 min read · 17 April 2017
