Private Equity
German forklift truck and robotics maker Kion has agreed to buy Dematic from AEA Investors and Ontario Teachers’ Pension Plan to expand into the market for automated warehouses and supply chains that have ballooned with the growth of e-commerce, Reuters reported. Excluding certain liabilities, the purchase price will be about US$2.1 billion. The proposed takeover, which values Atlanta, Georgia-based Dematic at US$3.25 billion, will allow Kion to combine its industrial forklift trucks systems with Dematic's fully automated warehouses to become a one-stop supplier for retailers and logistics companies, Kion said.
2 min read · 21 June 2016
Real estate investment trust Dream Office REIT said it would sell a 50 percent interest in Scotia Plaza, Canada's second tallest office building, to KingSett Capital and Alberta Investment Management Corp (AIMCo), Reuters reported. Dream Office, which would continue to own a 50 percent interest in the property, said it will receive net proceeds of about US$115 million before closing costs and adjustments.
1 min read · 21 June 2016
Envirosystems Inc, a portfolio company of Canadian private equity firm TorQuest Partners, has bought the Victoria Treatment Facility, a Victoria, B.C.-based handler of waste streams generated by shipyards, cruise ships, freighters, tankers and other marine vessels. No financial terms were released. The seller in the deal was Tervita Corp. Envirosystems, a provider of industrial and environmental services headquartered in Dartmouth, Nova Scotia, said the deal is part of a strategy to expand the company's service footprint and range of offerings. TorQuest acquired Envirosystems in early 2015. Tervita is backed by CAI Private Equity and other investors.
2 min read · 21 June 2016
Brookfield Asset Management has completed the spin-off of Brookfield Business Partners LP (BBU), a listed vehicle that allows shareholders to invest directly in the Toronto-based firm's private equity portfolio. The spin-off, accomplished by a special US$500 million distribution, resulted in BBU's initial trading today on the Toronto Stock Exchange and the New York Stock Exchange under the symbols BBU.UN and BBU, respectively. Shareholders now own a 22 percent interest in the vehicle, with Brookfield holding the balance. As reported earlier this month by PE Hub Canada, Brookfield recently closed its fourth private equity fund at US$4 billion.
6 min read · 20 June 2016
Essar Steel Algoma Inc said it had agreed to sell its assets to a consortium formed by New York-based private equity firm KPS Capital Partners and its lenders, Reuters reported. The Canadian steel company, which had been purchased nearly a decade ago by Indian energy and resources conglomerate Essar Group, had put itself up for sale while operating under creditor protection. The company manufactures steel products and sells them to the automotive, light manufacturing, construction, shipbuilding and energy industries.
1 min read · 20 June 2016
The regional network of the Fonds de solidarité FTQ has invested a total of $3.75 million in the past year in four business transfer deals in the Québec City area. The ownership changes involved LGT, a provider of engineering and energy efficiency consulting services; Métal Potvin, a manufacturer of sheet metal and steel mouldings; Cristal Contrôles, a maker of energy management, lighting, temperature and humidity control systems; and Graphica Impression, a digital printing centre. The Fonds régionaux de solidarité FTQ has invested $60 million in 85 projects in Québec City since 1996.
4 min read · 17 June 2016
Response Biomedical Corp (TSX: RBM) has agreed to be acquired by an affiliate of U.S. health investment firm OrbiMed Advisors and China's Shanghai Runda Medical Technology Co Ltd. The deal will see certain Response investors receive a cash consideration of $1.12 per share and result in the delisting of the company. Shareholders are expected to vote on the proposal by October 17. Vancouver-based Response, a maker of rapid on-site diagnostic tests, is an existing portfolio investment of OrbiMed. The latter currently holds a 50.1 percent interest. As part of the take-private deal, OriMed and Shanghai Runda have agreed to provide the company with about US$1 million in funding.
10 min read · 17 June 2016
British private equity firm Apax Partners LLP is exploring a sale of Trader Corp which could value the Canadian provider of advertising for automotive dealers at more than US$1.5 billion, including debt, sources told Reuters. Apax is working with investment banks that include Goldman Sachs Group Inc on a sale process for Trader, the sources said. Trader will pursue an initial public offering if the acquisition offers it receives do not meet Apax's valuation expectations.
2 min read · 17 June 2016
Onex Corp said it is preparing for the launch of its fourth mid-market private equity fund now that ONCAP III is approaching full investment. In its report of first-quarter 2016 results, Toronto-based Onex said it is “now in a position” to raise ONCAP IV as its predecessor was more than 75 percent invested as of March 31st. ONCAP III collected $800 million in a final close in September 2011.
2 min read · 16 June 2016
Canada's Dream Industrial Real Estate Investment Trust has held talks with potential suitors to explore the prospect of selling itself, sources told Reuters. Possible buyers could include asset managers, pension funds, private equity firms, insurers and real estate companies. Players who have shown interest in industrial properties include entities backed by Brookfield Asset Management, Canada Pension Plan Investment Board and Alberta Investment Management Corp. Pure Industrial Real Estate Trust could also be interested, one of the sources said.
2 min read · 16 June 2016
