Private Equity
Oil and gas producer Husky Energy Inc reported a first-quarter loss on Monday and said it has agreed to sell a partial interest in a package of Canadian midstream energy assets to two Hong Kong-based firms for $1.7 billion in cash, Reuters reported. The three companies will form a new limited partnership of which Husky will own 35 percent, Power Asset Holding Ltd will own 48.75 percent and Cheung Kong Infrastructure Holdings Ltd will own 16.25 percent. Cheung Kong Infrastructure, like Husky, is controlled by Hong Kong billionaire Li Ka-shing.
2 min read · 26 April 2016
CDPQ Infra, the infrastructure investment arm of the Caisse de dépôt et placement du Québec, has announced plans for its Réseau électrique métropolitain (REM), an electrified rail network that will link locations in the Greater Montréal area. The new network represents an investment of about $5.5 billion. The Caisse said it will commit $3 billion to the project. The proposed financial structure also requires investments by the Québec and Canadian governments. Once completed, the REM will be one of the largest automated transportation systems in the world, the Caisse said.
6 min read · 22 April 2016
Canadian pharmaceutical business Concordia Healthcare Corp (Nasdaq: CXRX, TSX: CXR) has formed a special committee of the board of directors to examine strategic alternatives potentially available to it. Concordia said it "has had discussions," but that a deal remains uncertain. The announcement followed media reports that Blackstone Group, a U.S. private equity firm, is considering an acquisition of the Oakville, Ont.-based company. European private equity firm Cinven has been a minority investor in Concordia since October 2015.
3 min read · 22 April 2016
FirstOnSite Restoration LP, a Canadian disaster restoration services business, has agreed to be acquired by its U.S. counterpart Interstate Restoration LLC. No financial terms were disclosed. The two companies said their combination will create North America's second largest independent restoration and reconstruction services provider. The deal, which is expected to close within two months, will be funded by U.S. private equity firm Delos Capital. Delos acquired Interstate last year. Mississauga, Ont.-based FirstOnSite was formed in a merger in 2007 by Canadian private equity firm TorQuest Partners. The company sought and was granted creditor protection this month.
4 min read · 22 April 2016
U.S. private equity firm Blackstone Group LP is considering a takeover of Canadian drug developer Concordia Healthcare Corp, Reuters reported, citing a story by Bloomberg. The talks are at an early stage and a deal may not happen, Bloomberg said. Last year, Concordia acquired London, U.K.-based Amdipharm Mercury Ltd for US$3.3 billion. The deal gave Amdipharm backer Cinven, a European private equity firm, a minority interest in Concordia.
2 min read · 21 April 2016
A new report by Bain & Co said private equity and corporate merger and acquisition deals in the global healthcare sector increased in 2015, but accounted for fewer investment dollars. Bain found deal volume rose 6 percent last year, with 199 transactions counted in total. However, deal value, totaling US$23.1 billion in 2015, slipped 20 percent from the year before. Bain said 2015 was a "year of juxtaposition" for investors in healthcare given robust market activity that was partially constrained by competition, high values, capital market volatility and economic uncertainty.
6 min read · 21 April 2016
Canadian mining company Victoria Gold Corp (TSX-V: VIT) has launched a $24 million private placement transaction. Electrum Strategic Opportunities Fund, a private equity fund managed by U.S. investment firm Electrum Group, will account for most of the money, giving it an approximate 13.6 percent interest in Victoria. Sun Valley Gold LLC, a U.S. hedge fund, will account for the rest, increasing its current stake to about 18 percent. With the deal's close, Electrum will have the right to nominate a board director. Toronto-based Victoria said the funds raised will be used to continue exploration and development of the company's Eagle Gold Project in Yukon.
6 min read · 21 April 2016
Gary Jonas Computing Ltd, an affiliate of Constellation Software Inc (TSX: CSU), has acquired the assets of Multi-Systems Inc (MSI), a Phoenix, Arizona-based software provider to the hospitality industry. No financial terms were disclosed. Gary Jonas said the MSI deal adds to its growing hospitality business unit. Toronto-based Constellation, an acquirer, manager and builder of vertical market software companies, is a portfolio investment of OMERS Private Equity.
2 min read · 20 April 2016
Forum Equity Partners has agreed to sell part of its Canadian public-private partnership (PPP) portfolio to Fiera Infrastructure for about $400 million. The five assets being sold include a 100 percent equity stake in the Billy Bishop Toronto City Airport Pedestrian Tunnel, a project that was completed in mid-2015. Forum, a Toronto-based alternative investment management and development firm, said the deal will give it significant capital to reinvest. Montréal-based Fiera Capital Corp (TSX: FSZ), manager of Fiera Infrastructure, said the purchase marks the beginning of a new initiative it will undertake in partnership with Aquila Infrastructure Management.
4 min read · 20 April 2016
Winnipeg-based Frontier Supply Chain Solutions Inc has acquired the assets of Euroworld Transport Systems Canada Inc from Calyx Transportation Group Inc, a portfolio company of U.S. private equity firm Wynnchurch Capital. No financial terms were disclosed. Vaughan, Ont.-based Euroworld is a transporter of alcoholic beverages and other products. Frontier, a provider of logistics, trade consulting and customs services, said the deal improves its volume and positions it in new segments. Wynnchurch bought Calyx, a Canadian transportation and logistics services specialist, in May 2006.
2 min read · 20 April 2016
