Private Equity
Sept-Îles, Québec manufacturing company Métal 7 Inc has bought Enduride Canada-USA, a Québec City-based maker of rollers and idlers for power-driven or gravity conveyors. No financial terms were released. Established in 1974, Métal 7 is a designer and maker of equipment for the iron ore and aluminum industries. It said the acquisition is the first in a strategy to create a flagship value-added products and services business dedicated to the global primary industry. Métal 7 was acquired in April 2014 by a group led by NCP Investment Management and including BDC Capital, Fondaction CSN and Fonds de solidarité FTQ.
2 min read · 02 March 2017
An acquisition vehicle co-owned by Power Corp's Sagard Capital Partners and Fairfax Financial Holdings has closed its buy of substantially all the assets of Performance Sports Group Ltd and its North American affiliates. The deal, announced in October, was valued at US$575 million. It completes a process begun with the Canadian and U.S. bankruptcy filings of Performance, an Exeter, New Hampshire-based maker of sports equipment and apparel. The company failed to attract competing bids from other private equity firms, Reuters reported in January.
4 min read · 02 March 2017
Canada Goose, a designer and maker of luxury outdoor apparel, priced its recently filed initial public offering in Canada and the United States. The company plans to raise as much as $320 million from a sale of 20 million subordinate voting shares at $14 to $16 per unit, according to the updated prospectus. Founded in 1957 in a small Toronto warehouse, Canada Goose has been owned by U.S. private equity firm Bain Capital since 2013. The IPO will include a secondary sale by Bain.
2 min read · 02 March 2017
Brookfield Asset Management is nearing an accord to buy a 30 percent stake in Renova Energia SA, which would include 800 million reais (US$258 million) in fresh capital for the Brazilian renewable energy company, a source told Reuters. Under terms of the deal, Canada's Brookfield would purchase the 15.7 percent stake that Light Energia SA has in Renova and then pump fresh cash into the company. Last year, Renova struggled with a severe cash crunch. By injecting capital, Brookfield is giving Light a chance to exit the company while diluting the other two members of Renova's controlling bloc.
2 min read · 01 March 2017
U.S. industrial growth company CSW Industrials Inc (Nasdaq: CSWI) has acquired Greco Aluminum Railings Ltd, a Windsor, Ontario-based designer and maker of railing and safety systems for multi-family and commercial structures in North America. CSWI said it paid about US$28 million for Greco, which will add to the Dallas, Texas-based company's building products portfolio. Established in 1991, Greco was acquired in September 2012 by O2 Investment Partners, a U.S. private equity firm.
4 min read · 01 March 2017
A €1.1 billion (US$1.2 billion) leveraged financing backing a buyout of European medical laboratory services operator Cerba is being shown to early-bird investors in a bid to gauge appetite for the deal, sources told Reuters. JP Morgan, Natixis, Credit Suisse, Deutsche Bank and BNP Paribas are leading the debt financing, which is currently split between a leveraged loan and a high-yield bond. Partners Group and Canada's PSP Investments agreed to acquire Cerba from PAI Partners, the firms announced in January. The terms weren't disclosed.
2 min read · 01 March 2017
Toronto-based retail operator YM Inc is preparing to submit an offer for the intellectual property of The Wet Seal LLC, as the 55-year-old U.S. teen retailer grapples with its second bankruptcy in the past two years, a source told Reuters. YM, which owns Canadian chains Stitches, Sirens and Suzy Shier, plans to submit a stalking-horse bid for Wet Seal's IP, the source said. Wet Seal, which is owned by U.S. private equity firm Versa Capital Management, filed for bankruptcy in February with liabilities between US$50 million and US$100 million after it failed to find financing to continue as a going concern.
2 min read · 28 February 2017
STEP Energy Services, a Calgary oilfield service company, has priced its recently filed initial public offering. STEP, backed by Canadian energy private equity firm ARC Financial Corp, said in an updated prospectus it planned to sell common shares at $14 to $16 per unit, generating about $200 million in proceeds. That amount may increase to $230 million if a greenshoe option is exercised. More than half the offering's proceeds will go to selling shareholders, including ARC, which holds a controlling stake in the company.
2 min read · 28 February 2017
Canadian specialty finance firm Crown Capital Partners has provided a $15 million special situations term loan to Solo Liquor Holdings Ltd, a private liquor retailer based in Calgary. Founded in 1996, Solo currently operates 41 retail liquor stores in locations across Alberta. The company, which is led by CEO Pali Bedi, plans to use the funds raised to expand its network of stores over the next several years. Last month, Crown Capital raised an additional $50 million for its fourth special situations fund. Crown Capital Fund IV now oversees $175 million in committed capital.
3 min read · 28 February 2017
Canadian real estate private equity investor Tricon Capital Group has agreed to acquire Silver Bay Realty Trust Corp (NYSE: SBY), an owner and operator of single-family rental (SFR) homes in the United States. The all-cash deal reflects an enterprise value of US$1.4 billion, which includes an equity purchase price of about US$820 million. Toronto-based Tricon said the acquisition will create the fourth largest publicly-owned SFR company in the United States, with over 16,800 homes, and with a focus on the Sun Belt region and middle market. The deal is expected to close by the end of the second quarter.
8 min read · 28 February 2017
