Private Equity
Kineticor Resource Corp has partnered with Canadian pension fund OPTrust in the acquisition of a partially-constructed 690 megawatt cogeneration plant located near Peace River, Alberta. No financial terms were disclosed. Kineticor, which bought the plant from Shell Canada, will repurpose it as a standalone facility called the Three Creeks Power Plant. It was also announced that OPTrust will invest $125 million in Kineticor, a Calgary-based power producer focused on gas-fired generation in Canada. The proceeds will support the company's current and future growth initiatives.
2 min read · 17 February 2017
Fairfax Africa Holdings Corp (TSX: FFH, FFH.U) has closed its initial public offering and concurrent private placement deals, raising US$500 million in total. The fund, an affiliate of Canada's Fairfax Financial Holdings Ltd, will invest public equity, private equity and debt in businesses located in Africa. Concurrent with the closing, Fairfax Africa acquired an indirect 42.2 percent interest in South Africa's AFGRI Proprietary Ltd, a private agricultural services and food processing company. The acquisition included an indirect interest formerly held by Fairfax Financial.
5 min read · 17 February 2017
Some of the world's biggest sovereign wealth funds are increasingly striking their own private equity deals rather than relying on external fund managers, in a drive to cut costs and gain more control, Reuters reported. With some US$6.5 trillion in assets, sovereign investors already account for 19 percent of capital committed to private equity, according to data from research firm Preqin. But mega-funds such as the Abu Dhabi Investment Authority, Saudi Arabia's Public Investment Fund and Singapore's GIC, are hiring specialists to find or vet deals, enabling them to negotiate with private equity firms from a position of strength or to go it alone.
4 min read · 17 February 2017
Private equity firm L Catterton has decided to not sell Ferrara Candy Co after running an auction for the maker of candy such as Fruit Stripe gum and Now & Later chews, sources told Reuters. L Catterton had put Ferrara up for sale about six months ago after receiving inquiries from other companies and private equity firms. Canadian buyout firm Onex Corp had come close to buying Ferrara, Reuters reported last month, but the two parties could not agree on a price. L Catterton was hoping a deal would value Ferrara at more than US$1.3 billion.
2 min read · 16 February 2017
Canada Goose Inc, a Toronto designer and maker of outdoor luxury apparel, has filed for an initial public offering of its subordinate voting shares on the New York Stock Exchange and the Toronto Stock Exchange, according to a report by Reuters. The company has priced the offering at US$100 million, Reuters said, citing an Securities Exchange Commission filing. Established in 1957, Canada Goose was acquired by U.S. private equity firm Bain Capital in December 2013. The IPO will include a secondary sale by Bain, according to the company's preliminary prospectus, that will leave it with majority control.
1 min read · 15 February 2017
Caisse de dépôt et placement du Québec has unveiled two new funds to invest in Québec companies seeking global growth opportunities or facing succession issues. Croissance CDPQ, capitalized at $250 million, will invest between $10 million and $100 million through a variety of financing vehicles in companies with international expansion projects. Fonds Relève CDPQ, also capitalized at $250 million, will invest between $10 and $100 million in equity in companies with business transfer projects. The announcement was made by Christian Dubé, the Canadian pension fund's executive vice-president, Québec.
3 min read · 15 February 2017
Canadian specialty drilling company Energold Drilling Corp (TSV-V: EGD) has agreed to receive a $20 million secured convertible loan in a deal led by Extract Capital, a U.S. natural resources investment firm. Extract will account for $15 million of the loan, the rest of which will be provided by a syndicate of existing debenture holders, new investors and others. With the deal's closing in March, Extract will be entitled to nominate one board member. Vancouver-based Energold, which serves the mining, energy, water, infrastructure and manufacturing sectors, said the proceeds will be used to repay its current loans and credit facilities.
4 min read · 15 February 2017
PayPal Holdings Inc (Nasdaq: PYPL) has agreed to acquire TIO Networks Corp (TSX-V: TNC), a Vancouver multi-channel bill payment processing company. The deal, expected to close in the second half of 2017, has an equity value of about $304 million (US$233 million). It has been approved by shareholders, directors and officers of TIO representing 50.4 percent of issued and outstanding common shares. They include U.S. private equity and hedge fund investors Core Innovation Capital, Napier Park Financial Partners, Edison Partners, Inter-Atlantic Advisors and Inductive Capital. San Jose, California's PayPal said TIO will be integrated into its global payments platform.
7 min read · 15 February 2017
Canadian real estate technology platform Real Matters Inc has appointed Lisa Melchior to its board of directors. Melchior is a former managing director of OMERS Private Equity (OPE). Joining OPE in 1999, she most recently led its North American technology investment group. Since late 2016, Melchoir has led Vertu Capital, a Canadian late-stage venture capital firm she founded. Markham, Ontario-based Real Matters, which is backed by Whitecap Venture Partners and other investors, is reportedly planning to raise an initial public offering this year.
2 min read · 14 February 2017
Edgefront Real Estate Investment Trust (TSX-V: ED.UN) has agreed to merge with Nobel Real Estate Investment Trust (TSX-V: NEL.UN) to create a $300 million REIT with 36 commercial properties located across Canada. The deal, which will see Noble unit-holders receive, for each trust unit held, 1.67 trust units of Edgefront, is expected to close in April. The combined company is expected to be named Nexus Real Estate Investment Trust. Canadian private equity firm TriWest Capital, Edgefront's largest unit-holder, has agreed to support the merger. Calgary-based Edgefront has an acquisition sourcing partnership with TriWest and RFA Capital Partners.
8 min read · 14 February 2017
