Private Equity
In today's market, sellers are increasingly attempting company sales in private auctions according to terms more characteristic of public M&A deal making. In a PE Hub Canada exclusive, Torys LLP‘s Stefan Stauder, Matthew Cockburn and Laurie Duke discuss the factors driving this trend, as well as some of the related pitfalls.
4 min read · 01 March 2016
N. Harris Computer Corp, a subsidiary of Constellation Software Inc (TSX: CSU), has closed is previously announced buy of SIV.AG, a German provider of utility billing, financial and customer care outsourcing solutions for utilities and energy service companies. No financial terms were disclosed. Constellation said the acquisition expands Harris’ existing utility software business with customers located in Europe. Based in Toronto, Constellation is an acquirer, manager and builder of vertical market software businesses. Publicly listed in 2006, it remains a portfolio company of OMERS Private Equity.
2 min read · 01 March 2016
Ares Capital Corp said it was the agent for a US$310 million senior secured credit facility that supported a refinancing alongside the purchase of a Canadian business by U.S.-based Industrial Container Services (ICS). ICS bought the industrial container division of The Bodtker Group, a Calgary-based provider of lubricants, chemicals and packaging products, in late January. No financial terms were released. In a separate statement, ICS, a provider of reusable container solutions, said the acquisition gives the company geographic reach it would not have been able to achieve on its own. Based in Maitland, Florida, ICS has been backed by U.S. private equity firm Aurora Capital Group since 2011.
4 min read · 01 March 2016
The JET Group, a Canadian supplier of tools, equipment and safety products, has rebranded as SureWerx. The Vancouver-based company said the new name is designed to tie together its product brands, including Sellstrom Manufacturing Co, which was bought last November. SureWerx said the initiative opens the door to further global growth and allows the company "to look beyond its traditional geographical markets." SureWerx is a portfolio investment of Canadian private equity firm Penfund, which acquired it in 2012.
2 min read · 01 March 2016
Vertafore, a portfolio company of U.S. private equity firm TPG Capital, has agreed to buy Keal Technology, a Concord, Ontario-based software applications developer focused on the Canadian insurance brokerage industry. No financial terms were released for the deal, which is expected to close by the end of March. Vertafore, an insurance software and services provider, said the acquisition will expand its portfolio of companies into Canada. Keal, which has over 16,000 broker users, will as a result of the deal be supported in its growth under its existing brand. Based in Bothell, Washington, Vertafore was acquired by TPG from Hellman & Friedman and JMI Equity for US$1.4 billion in 2010.
3 min read · 29 February 2016
BB&T Corp (NYSE: BBT) has agreed to acquire Swett & Crawford from Cooper Gay Swett & Crawford, a British wholesale and reinsurance broker. BB&T said it will pay US$500 million in cash for Swett & Crawford, a wholesale insurance broker headquartered in Atlanta, Georgia. The deal is expected to close in the first half of this year. Cooper Gay merged with Swett & Crawford in 2010. In early 2013, U.S. private equity firm Lightyear Capital and Canada's Public Sector Pension Investment Board (PSP Investments) jointly acquired the business. Last month, Lightyear and PSP again partnered in the proposed buy of broker-deal network AIG Advisor Group.
4 min read · 29 February 2016
A new takeover bid regime outlined by Canadian regulators is set to dramatically extend the minimum offer period on hostile bids, potentially reducing hostile deal activity in a largely resource-driven Canadian market, Reuters reported. The new rules, unveiled this week, will require that hostile bidders come in with fully financed bids and keep offers open for a minimum of 105 days, up from 35 days currently.
2 min read · 26 February 2016
Export Development Canada (EDC) has earmarked $750 million to support small and medium-sized enterprises (SMEs) in Canada's oil and gas industry that have been impacted by commodity price declines. EDC said it will lend support to companies investing in key areas. They include productivity improvements; infrastructure that will increase market access for resources; new technologies that diversify products; and advances in environmental sustainability. A trade finance agency, EDC is funded through the fees and interest charged on its loans and insurance policies.
3 min read · 26 February 2016
U.S. private equity firm OpenGate Capital has agreed to acquire the Window and Door division (Royal W&D) of Royal Building Products, a maker of vinyl window profiles and patio doors based in Woodbridge, Ontario. No financial terms were disclosed for the deal, which is expected to close next month. The seller is Axiall Corp (NYSE: AXLL), which is divesting Royal W&D to focus on its core business. Royal W&D has been operational for more than 40 years and currently has seven manufacturing sites in Canada and the United States. Headquartered in Los Angeles, OpenGate was founded in 2005 by Managing Partner Andrew Nikou, a native of Vancouver, British Columbia.
2 min read · 26 February 2016
The Ontario Municipal Employees Retirement System (OMERS) generated a 6.7 percent return in 2015, helped by a strong performance of private equity, real estate and infrastructure investments, Reuters reported. OMERS said net assets rose to more than $77 billion last year, up from $72 billion in 2014.
1 min read · 26 February 2016
