Private Equity
The Caisse de dépôt et placement du Québec has invested an additional €30 million ($44.4 million) in SPIE, a European provider of engineering and technical services. At the same time, Clayax Acquisition Luxembourg 5 SCA, a SPIE investment vehicle owned by the Caisse, Ardian and Clayton, Dubilier & Rice, will distribute to the Caisse its pro rata shares on March 30. As a result of these deals, the Caisse, which has backed SPIE since 2011, will now directly hold 13.2 percent of the company's share capital. The Montréal-based pension fund manager said the investment will support SPIE's growth strategy.
2 min read · 28 March 2016
Corsa Coal Corp (TSX-V: CSO), a supplier of quality metallurgical coal for steel production, has agreed to a private placement to raise US$8 million in gross proceeds. Participants in the deal will include existing investors U.S. private equity firm Quintana Capital Group, Canadian private equity firm Sprott Resource Corp, and vehicles controlled by a trust in the name of Adolf H. Lundin. Sprott Resource Lending Corp (SRLC), the company's senior lender, also invested. In connection with the deal, Corsa also agreed to amend the terms of a US$25 million credit agreement with SRLC and other lenders. Based in Canonsburg, Pennsylvania, Corsa has an office in Toronto.
6 min read · 24 March 2016
Crosbie & Co this month released a new report on North American private equity deal-making and what recent activity tells us about trends in Canada's M&A market. In a PE Hub Canada exclusive, Crosbie Managing Director Richard Betsalel shares some of the report's findings, which suggest much opportunity, especially if you're in selling mode, but also a few challenges that seem oddly familiar.
6 min read · 24 March 2016
First West Capital, the mezzanine and subordinated debt lending arm of Langley, B.C.-based credit union First West Credit Union, announced it is expanding into Ontario. The firm, which has closed over $110 million in business since 2010, said the move is based on its belief that "mid-market Ontario companies are under-served in terms of their access to capital." First West also announced it has hired David Hastie to lead its operations in Toronto as a regional director. Hastie, who has over 12 years of experience in investment and commercial banking, was previously a district director at Roynat Capital.
3 min read · 24 March 2016
Canadian specialty finance firm Crown Capital Partners has disposed of all of the common shares it held in Claude Resources Inc (TSX: CRJ), a Saskatoon-based gold exploration and mining company. The net proceeds totaled $5.3 million. Crown Capital provided Claude with a $25 million subordinated term loan in April 2013. This month, the company agreed to be acquired by Silver Standard Resources Inc in a deal that gave Claude an implied value of $337 million.
3 min read · 24 March 2016
The Canadian Radio-television and Telecommunications Commission (CRTC) has approved an application by Shaw Communications Inc to sell its shares in Shaw Media Inc to Corus Entertainment Inc for $2.65 billion. As the companies are affiliated, the CRTC concluded the change in ownership "does not result in a change in effective control of either entity." It added that the deal positions Corus "as a stronger player" that can "offer better services and higher-quality programming." The deal was opposed by Corus minority investor Catalyst Capital Group, a Canadian private equity firm.
4 min read · 23 March 2016
The Canadian subsidiary of Univar Inc (NYSE: UNVR) has acquired the assets of Nexus Ag Business Inc, a Saskatoon-based wholesale fertilizer distributor in Western Canada. No financial terms were released. Univar said the deal expands its agriculture product offering with micro-nutrients and specialty fertilizers. It also enlarges the company's agricultural distribution network in Canada to 16 facilities in four provinces. Based in Downers Grove, Illinois, Univar is a portfolio company of U.S. private equity firm Clayton, Dubilier & Rice, European firm CVC Capital Partners, and other investors.
3 min read · 23 March 2016
Advisory firms Glass, Lewis & Co LLC and Institutional Shareholder Services Inc have recommended that shareholders of Canadian home improvement retailer Rona Inc (TSX: RON) vote for the company's acquisition by Lowe’s Cos Inc (NYSE: LOW). The $3.2 billion deal was announced last month. Rona's largest investor, the Caisse de dépôt et placement du Québec, supports the acquisition; however, U.K. investment firm The Stirling Funds said it undervalues the preferred shares of Rona.
3 min read · 23 March 2016
Sun Communities Inc (NYSE: SUI) has agreed to buy Carefree Communities Inc, an owner and operator of senior manufactured housing communities and destination RV resorts concentrated in California, Florida, and Ontario. No financial terms were disclosed for the cash-and-stock deal, which is expected to close in July. The seller is U.S. private equity firm Centerbridge Partners. Scottsdale, Arizona-based Carefree acquired Port Colborne, Ontario's Sherkston Shores RV Resort in July 2013.
3 min read · 23 March 2016
Alaris Royalty Corp earned almost triple the money it invested in LifeMark Health, a Canadian physiotherapy- and rehabilitation-services provider acquired by Audax Private Equity in January. Alaris, a Calgary-based alternative-equity firm, said this month it had redeemed the last of a $74 million investment in LifeMark following the sale to Audax. With that redemption, the firm counted up total proceeds of about $217 million, Alaris President and CEO Steve King told PE Hub Canada.
3 min read · 23 March 2016
