Private Equity
Canada's Stantec Inc (TSX, NYSE: STN) has agreed to sell Innovyze, a U.S. provider of water infrastructure modeling and simulation software solutions, to an affiliate of European alternative investments firm EQT. EQT agreed to pay US$270 million for the business in a deal expected to close in the second quarter. Stantec, an Edmonton professional consulting services company, acquired Innovyze as part of last year's buy of MWH Global Inc. EQT said in a separate release it will support Innovyze's continued growth through a focus on new product capabilities, customer segments and geographies.
3 min read · 21 March 2017
407 International Inc, the operator of Ontario toll highway Highway 407, has agreed to issue $250 million in senior notes through its $1.8 billion medium-term notes program. The deal will be processed by a syndicate led by RBC Dominion Securities Inc and BMO Nesbitt Burns Inc. The proceeds will be used to fund a series reserve account, repay debt and other priorities. 407 International is owned by Ferrovial SA, Canada Pension Plan Investment Board (CPPIB) and SNC-Lavalin. CPPIB struck a deal in 2010 to acquire its 40 percent interest.
2 min read · 21 March 2017
A push by Canadian companies and pension funds to aggressively pursue overseas acquisitions is helping global investment banks to win a bigger share of M&A advisory mandates and prompting once-dominant domestic rivals to beef up their international operations, Reuters reported. Canada's outbound M&A volume hit a record US$128 billion last year. Bankers expect the trend to continue as sluggish economic growth at home, and a highly-concentrated market, make domestic M&A less appealing.
3 min read · 21 March 2017
Avison Young Inc has acquired Hunter & Associates LLC, a Raleigh, North Carolina commercial real estate business. No financial terms were disclosed. The add-on acquisition, Avison's third so far this year, expands the company's property management, retail real estate brokerage, and landlord and tenant-representation service offerings in the Carolinas. Avison, a Toronto-based provider of commercial real estate services, is a portfolio investment of Canadian private equity firm Parallel49 Equity. Between 2011 and 2015, it was backed by Parallel49’s predecessor, Tricor Pacific Capital.
6 min read · 21 March 2017
Kew Media Group, a Canadian special purpose acquisition corporation, has closed its buy of Frantic Films Corp, a branded content and live-action production company based in Winnipeg. The buy formed part of broader transaction in which Kew acquired six content companies to create a global media platform. Kew previously disclosed an upfront purchase price of about $104.1 million for all of the assets. Frantic Films has since 2007 been a portfolio company of PRIVEQ Capital Funds, a Canadian private equity firm. PRIVEQ at the time said it invested $5 million to help the company grow.
2 min read · 20 March 2017
U.S. private equity firm Carlyle Group has acquired Arctic Glacier Group Holdings Inc, a Canadian manufacturer and distributor of packaged ice to consumers across North America. No financial terms were disclosed. Carlyle bought the Winnipeg-based company from U.S. private equity firm HIG Capital, which acquired it out of bankruptcy in 2012 for US$434.5 million. Earlier this month, the Wall Street Journal said HIG was planning to sell Arctic Glacier to Carlyle for US$723 million. Founded in 1996, Arctic Glacier serves more than 75,000 retail accounts. It is the fifth investment of Carlyle Global Partners, Carlyle’s long-duration fund, which raised US$3.6 billion last year.
5 min read · 20 March 2017
Canadian mining company Highland Copper Co Inc (TSX-V: HI) has closed a third tranche of its private placement, raising gross proceeds of about $15.4 million. Orion Mine Finance, a U.S. mining private equity firm, invested in the deal, giving it a roughly 18.6 percent interest. Orion is entitled to certain rights as a result of its investment, including an ability to purchase 15 percent of concentrates produced from the company's Copperwood project. Based in Longueuil, Québec, Highland said it will use the proceeds of the private placement, targeted to raise about US$17 million, to continue exploring and developing projects in Michigan's copper district.
3 min read · 20 March 2017
Fengate Real Asset Investments has promoted Justin Catalano to managing director and head of private equity. Catalano, who joined Fengate in 2011 and served as director of infrastructure, will oversee the Toronto-based firm's newly created private equity investment group. In that role he will identify and execute on deal opportunities focused on mid-market operating companies and platforms affiliated with real assets sectors. Catalano formerly served as an associate at Birch Hill Equity Partners and TD Capital Mezzanine Partners.
2 min read · 20 March 2017
Canadian private equity firm Penfund earlier this month invested in Caliber Collision Centers and Mister Car Wash (MCW), two existing portfolio companies. Penfund provided US$87 million in second-lien debt, the lead order for a new US$250 million credit facility, to Caliber, a U.S. collision repair shop operator controlled by OMERS Private Equity. Penfund also provided US$9.8 million in debt funding to MCW, a U.S. car wash operator controlled by Leonard Green & Partners. The deals, which supported dividend recapitalizations, were done via Penfund Capital Fund V, which raised $724 million last year.
3 min read · 20 March 2017
Canadian private equity firm Catalyst Capital Group has been awarded the 2017 "Cross Border Turnaround of the Year Award" from the Global M&A Network. The award, which recognizes multi-jurisdictional restructuring events valued above US$5 billion, went to Catalyst for its role in last year's restructuring of Pacific Exploration & Production Corp, a Toronto producer of natural gas and crude oil in Latin America. Catalyst was also nominated for the 2017 "Global Private Equity Turnaround Firm of the Year Award". The winner will be announced in a ceremony in New York on April 4th.
3 min read · 20 March 2017
