Private Equity
Canadian power group Northland Power Inc is looking for a new owner, its chief financial officer said, as part of its strategic review begun in July aimed at boosting growth and shareholder value. The Toronto-based company, which operates thermal and renewable energy stations in Canada and Europe, is worth $4.06 billion. CFO Paul Bradley told Reuters the company's range of options include being sold to a private equity firm.
2 min read · 28 September 2016
France's PSA Group, parent of the Peugeot automotive brand, and Canadian merchant bank MacKinnon, Bennett & Co (MKB) have acquired an interest in Communauto Inc. No financial terms were released. Based in Montréal, Communauto is a car-sharing business, offering a fleet of electric vehicles as well as station-based and related services. It currently operates in seven cities in Canada as well as in Paris. The investment by PSA and MKB, an investor in renewable energy and smart cities sectors, is intended to speed up the company's global expansion and roll out its electrification strategy. Communauto is led by CEO Benoît Robert, who founded it in 1994.
4 min read · 28 September 2016
The Caisse de dépôt et placement du Québec (CDPQ) has invested US$500 million in Sedgwick Claims Management Services Inc, a Memphis, Tennessee-based provider of third-party claims management services. The deal will give CDPQ a significant minority interest in the company alongside Sedgwick's majority owner, Kohlberg Kravis Roberts (KKR), as well as Stone Point Capital. Founded in 1969, Sedgwick has some 275 offices located in North America and Europe. Earlier this month, the company's affiliate, Vericlaim Canada, acquired Toronto-based RGM Claims Services Inc.
4 min read · 28 September 2016
OMERS Private Equity (OPE) has sold Great Expressions Dental Centers, a U.S. dental support organization with 269 affiliated practice locations across ten states. No financial terms were disclosed for the deal, which saw the company acquired by U.S. private equity firm Roark Capital Group. OPE bought Great Expressions from Audax Group in October 2011. It said the company entered three new markets and added 108 new locations during OPE's period of ownership. Great Expressions is OPE's eighth exit in the last three years, Senior Managing Director Michael Graham said. The firm's other recent exits include Give & Go Prepared Foods Corp, sold to Thomas H. Lee Partners last month.
3 min read · 28 September 2016
PHI Group Inc has agreed to acquire an unidentified Canadian educational company. The cash-and-stock deal, the terms of which were not disclosed, is expected to close in October. PHI Group, a U.S. holding company, said the target business is a private provider of English language and career training services to about 20,000 students annually. Milost Advisors, an affiliate of U.S. private equity firm Milost Global, arranged financing for the deal. Milost Global and PHI Group earlier in 2016 formed a vehicle to acquire public companies that generate annual revenue of up to US$5 billion.
3 min read · 27 September 2016
Sanjel Energy Services Inc has been launched with an equity investment from ARC Financial Corp, a Canadian energy private equity firm. No financial terms were disclosed. Based in Calgary, Sanjel is a supplier of cementing and acidizing solutions to the oil and gas industry. It was formed as a result of ARC's acquisition of certain assets of Sanjel Corp in April. Douglas Freel, a managing director of ARC, said the investment will support the new company as it weathers the current downturn, and provide it financial flexibility to expand as opportunities arise. In June, PE Hub Canada featured a story about ARC's investments in Longshore Resources and Wayfinder.
3 min read · 27 September 2016
Canadian money manager West Face Capital is looking to raise US$1.5 billion for a new private equity fund, a person familiar with the situation told Reuters. The Toronto-based hedge fund is targeting both U.S. and Canadian investors, the source said. West Face, which is invests in event-oriented opportunities, is best known for taking stakes in struggling companies and pushing for changes.
1 min read · 27 September 2016
The private equity group of Brookfield Asset Management disclosed an increase in its ownership interest in Performance Sports Group Ltd (NYSE, TSX: PSG), an Exeter, New Hampshire-based maker of sports equipment and apparel. Shares acquired by Brookfield raised its stake in the company from about 10 percent to about 13.23 percent. The Canadian-born Performance Sports went public in mid-2014 after being backed by U.S. private equity firm Kohlberg & Co and other investors for about six years. It has recently faced market uncertainty concerning its financial status.
3 min read · 27 September 2016
U.S. resource private equity firm Denham Capital announced its partnership with JDS Silver Inc, a Vancouver-based mining company. Under the terms of the partnership, Denham provided US$65 million in funding to JDS Silver to complete construction and bring into production the Silvertip Mine in Northern British Columbia. The property, a high-grade silver-lead-zinc mine, has been under construction since late 2015 and is expected to begin production this month. Established in 2012, JDS Silver is led by CEO Jeff Stibbard. Denham said the company is its first investment in the Canadian mining industry.
3 min read · 27 September 2016
Vancouver-based women’s apparel retailer Aritzia Inc has filed a final prospectus with Canadian securities regulatory authorities for a secondary offering of subordinate voting shares. As expected, the shares will be sold by Brian Hill, the company's founder and CEO, and Berkshire Partners, a U.S. private equity firm. Priced at a top range of $16 per share, the offering is expected to generate gross proceeds of $400 million, or higher if an over-allotment option is exercised. The pricing gives Aritzia a market capitalization of $1.87 billion, Reuters reported. Berkshire acquired a majority stake in the company in late 2005.
5 min read · 27 September 2016
