Private Equity
PharmaCan Capital Corp, a merchant bank that invests in the Canadian medical marijuana industry, has appointed Michael Gorenstein as its president and CEO, replacing Paul Rosen, who has resigned. Gorenstein, who has served as vice-chairman of PharmaCan, is a partner at Alphabet Ventures, a New York-based investment management firm. Toronto-based PharmaCan also announced the close of the first tranche of a $6 million private placement deal.
4 min read · 18 May 2016
Claridge and Ivanhoé Cambridge have agreed to partner in a $100 million vehicle set up to invest in mid-sized real estate development projects in Montréal. The vehicle, which will invest alongside private property developers, will typically deploy between $5 million and $15 million to projects focused on residential, mixed-use, light industry and low-density office buildings. The partnership will be managed by Claridge Real Estate. Claridge is a private equity firm that invests on behalf of the Stephen Bronfman family. Ivanhoé Cambridge is the real estate investment arm of the Caisse de dépôt et placement du Québec.
3 min read · 18 May 2016
Norway’s Siem Offshore AS has acquired the 50 percent interest in Secunda Canada LP held by Birch Hill Equity Partners, a Canadian mid-market private equity firm. No financial terms were released for the deal, which resulted from a recapitalization of Secunda, an operator of harsh-weather offshore support vessels servicing the oil and gas industry. Secunda, which has offices in St. John's, Newfoundland and Dartmouth, Nova Scotia, was established by Birch Hill in March 2012, following the investor's buy of marine assets owned by McDermott International Inc. Siem Offshore acquired an initial 50 percent stake in the company in September 2013.
2 min read · 18 May 2016
Britain's second-biggest energy supplier, SSE, is considering selling up to a third of its 50 percent stake in regional gas distribution business SGN to raise cash for shareholders or to reinvest, Reuters reported. SSE could raise around 1 billion pounds (US$1.4 billion) from its sale, based on a 20 percent premium to the regulated asset base value of SGN, analysts at Jefferies said. SGN is co-owned by two Canadian pension fund investors: Ontario Teachers' Pension Plan and Ontario Municipal Employees Retirement System (OMERS). OMERS invested via Borealis Infrastructure.
2 min read · 18 May 2016
U.S. hedge fund Livermore Partners wants Entertainment One Ltd to add directors with more industry and financial expertise, the fund's top executive said, in its latest bid to spur changes at the Canadian media company, Reuters reported. The fund could also push for a share buyback if the company does not act on its demands, made in January, to slow down the pace of acquisitions and improve cash flow. Toronto-based Entertainment One, backed since last year by Canada Pension Plan Investment Board, was recently reported to be in talks to be acquired by U.K. television network ITV.
2 min read · 18 May 2016
A trucking company half-owned by Australia's Asciano Ltd took the port and rail giant to court, demanding assurance about its future under an A$9.1 billion (US$6.7 billion) buyout of the parent company, a hiccup in the long-running deal, Reuters reported. In a preliminary hearing on Tuesday, Australian Container Freight Services Pty Ltd asked the Supreme Court of New South Wales to make Asciano confirm its rights under Asciano's plan to be bought by a host of global investors, including Canada's Brookfield Asset Management.
2 min read · 17 May 2016
Samson Resources Corp, one of the largest energy companies to file for bankruptcy in the commodity downturn, proposed a new Chapter 11 exit plan on Tuesday that would swap ownership of the natural gas producer to banks in return for reducing debt, Reuters reported. The banks that would become the owners of Samson include the Bank of Montreal. The Tulsa, Oklahoma-based company was acquired by a group led by U.S. private equity firm Kohlberg Kravis Roberts & Co in 2011 in a buyout valued at US$7.2 billion.
2 min read · 17 May 2016
GuestLogix Inc (TSX: GXI) recently wrapped up its sale of OpenJaw Technologies Inc to TravelSky Technology Ltd. The deal, announced last month, provided GuestLogix with net proceeds of approximately US$38.5 million after adjustments, but before fees and expenses. The OpenJaw transaction resulted from a court-approved sale and investment solicitation process conducted under creditor protection legislation. Based in Toronto, GuestLogix is a provider of merchandising, payment, and business intelligence technology to the passenger travel industry. It closed a credit deal last June with Vistara Capital Partners and Beedie Capital Partners.
4 min read · 17 May 2016
U.S. private equity firm Quad-C Management has wrapped up its sale of InterWrap Inc, a Canadian manufacturer and distributor of synthetic roofing underlayment and packaging materials. The deal, announced earlier this year, saw Owens Corning (NYSE: OC), a U.S. producer of insulation, roofing and fiberglass composites, acquire the company for US$450 million. Established in 1984, Vancouver-based InterWrap is led by CEO Eduardo Lozano and operates facilities in the United States, Canada, India and China. It received an initial investment from Quad-C in November 2013.
3 min read · 17 May 2016
U.K. alternative assets manager Schroders has agreed to buy the securitized products investment management team of Brookfield Investment Management, which oversees more than US$4 billion. No financial terms were disclosed for the deal, which is expected to close in the third quarter. As a result, the Brookfield team, which is led by Managing Director Michelle Russell-Dowe, will combine with Schroders' fixed income operations in New York. The combined group will manage more than US$8 billion. Schroders said the acquisition "deepens our capabilities in one of the largest and most research intensive credit sectors globally."
3 min read · 16 May 2016
