Private Equity
U.S. oil refiner HollyFrontier Corp is in advanced talks to acquire Suncor Energy Inc's Petro-Canada lubricants division for a little over US$1 billion, after submitting the highest bid in an auction, sources told Reuters. The potential deal would give Canada's Suncor a cash boost with which to pay down debt incurred as a result of recent acquisitions. The auction for the Petro-Canada lubricants business attracted other companies and private equity firms, the sources said.
2 min read · 24 October 2016
Logan International Inc (TSX: LII), a Canadian maker of tools used in global drilling and production activities, has been acquired by an affiliate of Rubicon Oilfield International Holdings LP. Shareholders of Calgary-based Logan received about $1.6 in cash for each common share held. Rubicon, a Houston, Texas manufacturer of oilfield products, is backed by a line-of equity investment of up to US$300 million from Warburg Pincus, a U.S. private equity firm. Logan has been a portfolio company of Cadent Energy Partners since 2006.
4 min read · 24 October 2016
Dick's Sporting Goods Inc, teamed up with liquidators, won a bankruptcy auction on Friday for the U.S. business of Golfsmith International Holdings Inc with a bid of about US$70 million, sources told Reuters. Dick's plans to keep open at least 30 Golfsmith stores and wind down the rest with liquidators from Hilco Global and Tiger Capital Group, the sources said. Golfsmith, which recently filed for bankruptcy in the United States and Canada, has been backed by OMERS Private Equity since 2007.
2 min read · 24 October 2016
Altice USA, the cable operator that Netherlands-based Altice NV put together by acquiring Cablevision and Suddenlink Communications, is drawing up plans for a potential initial public offering, sources told Reuters. The move would allow Altice's founder, French billionaire Patrick Drahi, to expand his budding U.S. cable empire by giving Altice USA public stock it can use to help finance more acquisitions. Taking Altice USA public would also allow investors BC Partners and Canada Pension Plan Investment Board to cash out in the future.
2 min read · 21 October 2016
Aurigen Capital Ltd, a Toronto-based life reinsurance company, has agreed to be acquired by PartnerRe Ltd for $375 million (about US$286 million) in cash. The deal is expected to close by the first quarter of 2017. Bermuda's PartnerRe, a multi-line reinsurer, said the deal supports a strategy to grow its life and health business and will expand its geographic footprint. Aurigen was launched in 2007 with a $500 million equity investment from Edgestone Capital Partners, Bregal Capital, Pine Brook Partners and Soros Strategic Partners. It reports having become a top-five life reinsurer in Canada based on recurring new reinsurance business.
4 min read · 20 October 2016
Music and entertainment retailer HMV Canada plans to close its Toronto Eaton Centre location by the end of this year, citing high real estate costs. The company said it has opened and closed a number of stores over the last decade as part of a long-term real estate strategy. HMV Canada is a portfolio investment of British private equity firm Hilco Capital. In July 2011, Re:Capital Canada, a Hilco affiliate, acquired it from the United Kingdom's HMV Group Plc. Last year, Re:Capital Canada bought Tilley Endurables.
2 min read · 20 October 2016
Canada Pension Plan Investment Board (CPPIB) and Longfor Properties Co Ltd have entered into a second joint venture to invest in Chongqing West Paradise Walk, a shopping centre in China. As part of the deal, CPPIB will commit about $193 million to acquire a 49 percent interest in the property. Last year, CPPIB announced its first joint venture with Longfor, a retail mall developer and operator. It saw the pension fund commit $234 million to support a mixed-use real estate project in Suzhou, which included the development of a Paradise Walk mall.
4 min read · 20 October 2016
Canadian protein and organic food company Blue Goose Capital Corp has raised a $20 million investment from Dundee Corp and Serruya Private Equity (SPE). With the deal, SPE will be offered a seat on the board of directors. Blue Goose said the funds raised will support its on-going operations, growth strategy, and future acquisitions. The Toronto-based company concurrently announced its buy of Tender Choice Foods Inc, a Canadian meat processing plant. Toronto's SPE, an owner of several global food brands, earlier this year sold Kahala Brands Ltd to MTY Food Group Inc for US$300 million.
4 min read · 19 October 2016
Ficodis Group has bought Varco Industrial Sales Ltd, a London, Ontario-based specialist in cutting tools and AutoCrib vending machines. No financial terms were disclosed. The acquisition, Ficodis' fourth this year, was funded by Québec private equity and venture capital firm Fondaction CSN and the Royal Bank of Canada (RBC). Fondaction CSN reported an investment of $5.3 million. Ficodis, a Montréal-based distributor of specialized industrial products, said the deal accelerates its growth and increases the company's presence in the Ontario market.
2 min read · 19 October 2016
Alternative IQ announced that PH&N Absolute Return Fund was named the best overall Canadian hedge fund in 2016. The award was presented at the the 9th Annual Canadian Hedge Fund Awards in Toronto. The PH&N fund, managed by Phillips, Hager & North, was given top spot among 195 hedge funds for having the best combined 10-year return (15.45 percent) and Sharpe ratio (1.61 percent). Second and third place went to King & Victoria Fund and Venator Founders Fund, respectively. SGGG Fund Services was named top Canadian hedge fund administrator. Alternative IQ is a division of Alliance Sales and Marketing Inc.
4 min read · 19 October 2016
