Private Equity
American investors are a major force in Canada's private equity market, Torys LLP's Amanda Balasubramanian and Jonathan Wiener write. But when they undertake deals in Canada, U.S. investors encounter big differences in debt terms relative to south of the border. Balasubramanian and Wiener discuss these differences and what they mean for future deal-making.
6 min read · 18 March 2016
The Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ have made a minority investment of $80 million in Triotech, a Canadian provider of immersive and interactive attractions for the entertainment industry. Headquartered in Montréal, Triotech designs, manufactures and markets rides that integrate multiple technologies to deliver a multi-sensorial experience. Its products are installed in more than 50 countries and over 53 million people have experienced them, the company reports. Triotech was founded in 1999 by President and CEO Ernest Yale.
3 min read · 18 March 2016
Brazil's state-controlled oil company Petróleo Brasileiro SA is considering selling control of fuel distribution unit BR Distribuidora SA after bidders failed to emerge for a minority stake, sources told Reuters. BR Distribuidora, recently estimated at US$10 billion in value, has drawn bids from private equity firms and other investors, including Canada's Brookfield Asset Management, GP Investments and Advent International, one source said.
3 min read · 18 March 2016
StorageVault Canada Inc, a Regina-based operator of storage facilities across Canada, has closed its previously announced private placement. The company raised $5.5 million in gross proceeds, bringing total recent fundraising to about $22.6 million. SaskWorks Venture Fund, which is managed by Canadian private equity firm PFM Capital, invested in the offering and will as a result hold up to 21.32 percent of StorageVault's issued and outstanding common shares. The deal's proceeds will be used to fund StorageVault's proposed buy of Winnipeg Mini Storage and future acquisitions.
6 min read · 18 March 2016
LMS Reinforcing Steel Group, a portfolio company of Canadian alternative equity firm Alaris Royalty Corp, has acquired Johasee Rebar Inc for an undisclosed sum. Based in Bakersfield, California, Johasee is a provider of rebar fabrication and installation for industrial, commercial and residential projects. Surrey, B.C.-based LMS, a concrete reinforcing steel (rebar) fabricator and installer focused on markets in Western Canada, said the deal extends its reach to customers located in southern California. Alaris has backed LMS since April 2007.
2 min read · 18 March 2016
Terrapure Environmental has acquired Consolidated Giroux Environment Inc, an industrial dredging services company based in Charlo, New Brunswick. No financial terms were disclosed. Terrapure, a Burlington, Ont.-based environmental services and recycling solutions specialist, said the deal adds to the company's capacity to provide onsite dredging services to customers. The acquisition will also increase the range of services available to Giroux’s customer base. Terrapure was launched in March 2015 by Canadian private equity firm Birch Hill Equity Partners. It emerged from Birch Hill's buy of Newalta Corp's industrial division for $300 million.
3 min read · 17 March 2016
David Brackett and John Martin, Co-CEOs of Antares Capital, have been named "Dealmakers of the Year" in the ninth annual M&A Mid-Market Awards of Mergers & Acquisitions. Antares, the largest provider of U.S. mid-market loans, was acquired by Canada Pension Plan Investment Board (CPPIB) for US$12 billion last August. Brackett and Martin, who have led the firm for the past two decades, were honoured for their role in steering Antares through the process, continuing "prolific lending", and closing the deal with CPPIB.
4 min read · 17 March 2016
Some of Canada's top pension funds, among the world's biggest investors in British real estate and infrastructure, are holding back on U.K. deals until after Britons vote on whether to leave the European Union, Reuters reported. These funds, which together manage more than $700 billion in assets, fear valuations could drop if Britain chooses to leave the bloc and have particular concerns about the impact on London's financial district.
3 min read · 17 March 2016
British private equity firm Terra Firma has rejected bids from a Chinese company for leasing group AWAS worth up to US$2.2 billion in the latest evidence of attempted deal-making in the aircraft financing business, sources told Reuters. China's HNA Group made two offers for the group, the sources said. Terra Firma and Canada Pension Plan Investment Board (CPPIB) invested in Dublin-based AWAS in 2006. The deal gave CPPIB a 25 percent stake in the company.
3 min read · 16 March 2016
An investor group formed to buy Pineville, Louisiana-based utility Cleco Corp (NYSE: CNL) has joined with the company to offer enhanced deal commitments. British Columbia Investment Management Corp (bcIMC), Macquarie Infrastructure and Real Assets and the other investors have added to some 77 commitments, including a new proposal that would see Louisiana pension plans invest in up to 10 percent of Cleco equity. The effort is intended to convince regulators to approve the previously announced US$4.7 billion acquisition. Regulators turned down the deal in February.
7 min read · 16 March 2016
