Private Equity
Canadian private equity firm Beringer Capital has acquired Blue Acorn Inc, a Charleston, South Carolina digital commerce agency. No financial terms were released for the deal, which will see Blue Acorn's management retain an equity interest in the company. Led by Founder and CEO Kevin Eichelberger, Blue Acorn will utilize the partnership with Beringer to accelerate the growth and development of its technology and services for brands and retailers. It is the second investment of Beringer's third fund, which invests in digital media and marketing services sectors. Last July, Beringer acquired Adweek from Mediabistro Holdings LLC.
3 min read · 03 April 2017
Alithya has acquired Systemware Innovation Corp (SWI), a Toronto information technology and software engineering consulting business. No financial terms were disclosed. Alithya, a Québec City provider of strategic consulting and information technology services, said the deal will add to its service offering, enhance its presence in financial, energy and transportation sectors, and enable expansion of its FinTech LAB services into Ontario. In January, the company raised $17 million in funding from Capital régional et coopératif Desjardins, Investissement Québec, Telus Ventures and iA Financial Group.
3 min read · 03 April 2017
Canadian power producer Maxim Power Corp (TSX: MXG) has closed its sale of a 100 percent interest in Maxim Power (USA) Inc to an affiliate of Hull Street Energy, a U.S. private equity firm. The deal, announced in December, reflects an implied enterprise value of about US$106 million. Maxim said it will receive net proceeds of about US$84 million. Based in Calgary, Maxim acquires and develops power and power-related projects. It currently owns and operates two plants in Alberta with 156 megawatts of electric-generating capacity. Hull Street invests in power generation assets and related businesses.
3 min read · 03 April 2017
Gaz Métro LP, a Montréal-based natural gas distribution company, has raised about $100 million in gross proceeds from a private placement offering. Of the total proceeds, about $71 million was raised through an issuance of common shares to Noverco Inc, an ownership vehicle held primarily by Canadian pension fund manager Caisse de dépôt et placement du Québec. The funds raised will be used to rebalance the company's capital structure and other priorities, Gaz Métro said. Last month, a Gaz Métro affiliate agreed to buy Standard Solar Inc, a U.S. developer of solar electric systems.
3 min read · 03 April 2017
Victor Li, co-chairman of Husky Energy Inc and son of one of Asia's richest men, has agreed to acquire Reliance Home Comfort LP, a Canadian provider of heating and cooling systems, from U.S. private investment firm Alinda Capital Partners for $2.8 billion, Reuters reported. Li is the heir to Hong Kong billionaire and property tycoon Li Ka-shing. Several U.S. private equity firms also looked at the asset, sources said. Reliance entered Alinda’s portfolio in 2007, when the investor acquired UE Waterheater Income Fund for about $1.74 billion.
2 min read · 31 March 2017
Shareholders in Heathrow Airport Holdings Ltd have agreed to invest an additional £650 million (US$807 million) in the London-based international airport. The shareholders include Caisse de dépôt et placement du Québec, which currently holds a 12.62 percent interest. Initial plans for the funds raised include terminal expansion and the creation of an access tunnel. Heathrow is home to more than 80 airlines, connecting to more than 180 destinations. Its largest shareholder is Ferrovial SA.
3 min read · 30 March 2017
Canadian Imperial Bank of Commerce said it has raised its offer for PrivateBancorp Inc by 20 percent to about US$4.9 billion, after some of the Chicago-based lender's shareholders opposed an initial bid. The move came ahead of a June 29 deadline for the deal to be approved and about nine months after the Canadian bank made its initial US$3.8 billion stock-and-cash offer. If successful, the acquisition would be CIBC's biggest. "I like the new offer. Without a competing bid, it seems like full-and-fair value," said David Neuhauser, managing director of U.S. hedge fund Livermore Partners, which owns PrivateBancorp shares.
2 min read · 30 March 2017
Caisse de dépôt et placement du Québec has invested $36.5 million in Eddyfi, a Québec City developer of inspection equipment and software for the industrial sector. The deal, which gives the Caisse a minority stake, is intended to fund the company's growth plan focusing on overseas strategic acquisitions. Founded in 2009, Eddyfi utilizes advanced non-destructive testing (NDT) technologies for products used in a wide range of sectors and in more than 70 countries. Last May, it acquired U.K.-based NDT products maker Silverwing Group from NVM Private Equity. Eddyfi is led by President and CEO Martin Thériault.
3 min read · 30 March 2017
Canadian companies are looking to sell non-core assets as a result of macroeconomic volatility, according to a new study by Ernst & Young (EY). A survey conducted for EY's 2017 Corporate Divestment Study found 73 percent of respondents were likely to pursue divestment strategies. Once divested, 51 percent reported the initiative led to valuations of remaining assets that exceeded expectations. EY said 81 percent of Canadian companies believe they have been able to continue to create value in businesses subject to a divestment, compared to only 67 percent of global respondents.
4 min read · 30 March 2017
U.S. private equity firm Bridge Growth Partners has made a majority equity investment in Accedian, a Canadian provider of network performance monitoring and assurance solutions. No financial terms were released; however, the Financial Post reported Bridge Growth invested more than US$100 million to support Accedian's global growth. With the deal, Bridge Growth's Tom Manley will chair the board, while Alok Singh and Bill Teuber will become directors. Founded in 2005 by CEO Patrick Ostiguy, Montréal's Accedian has previously raised funding from Rho Canada Ventures, Skypoint Capital, Summit Partners and other investors.
4 min read · 30 March 2017
