Private Equity
A new report by the Canadian Venture Capital & Private Equity Association (CVCA) found robust investment results in Canada's venture capital (VC) and private equity (PE) markets in 2015. In the domestic VC market, a total of $2.3 billion was invested in 536 financing rounds last year, 12 percent more than in 2014. The CVCA found Canadian VC funds raised $2 billion in committed capital in 2015, also up from a year ago. Buyout and related PE market activity in Canada reflected 399 deals with values totaling $22.8 billion last year, an historically high amount, if down from the exceptional level reached in 2014, the CVCA said. Domestic buyout and PE funds secured $14.1 billion in committed capital last year.
6 min read · 22 February 2016
Laces Group, a portfolio company of Canadian private equity firm Novacap, has acquired most of the assets and operations of Zenith Products Corp, a maker of bathroom furnitures, fixtures and accessories based in New Castle, Delaware. No financial terms were released for the deal, which will see Zenith’s management and operating team remain in place. Laces, a Canadian home fashion products specialist, said the acquisition gives it manufacturing capabilities in the United States as well as an expanded product range. Based in Montréal, Laces operates through its Maytex subsidiaries in the United States and through Banyo-Decolin in Canada. Novacap invested in the business in 2014.
4 min read · 22 February 2016
Torys LLP's Michael Akkawi, Sophia Tolias and Guy Berman believe key dynamics of Canada's private equity market in 2015 tell us a lot about emerging trends in 2016. In a PE Hub Canada exclusive, they argue how a more competitive market environment, new PE strategies and other factors are shaping deal activity. Neville Jugnauth and Derek Flaman also share their insights on the new deal opportunities in Canada’s energy sector.
6 min read · 19 February 2016
Canadian pension funds achieved a return of 5.4 percent on their investments in 2015 as their strategy of diversifying internationally helped mitigate volatile market conditions, Reuters reported, citing research by RBC Investor & Treasury Services. The positive performance could largely be attributed to a lift from global equities, offsetting downward pressure from weaker domestic sectors, particularly commodities, resources and energy, an RBC executive said in a statement.
1 min read · 19 February 2016
Groupe Marcelle Inc has bought Lise Watier Cosmétiques, a Montréal-based branded developer and manufacturer of cosmetics, skincare and fragrances sold in department stores and drugstores. The acquisition's value was not disclosed; however, the Caisse de dépôt et placement du Québec (CDPQ) said it has invested $18 million in the combination of the two companies. Groupe Marcelle said the acquisition makes it the leading business in Canada's beauty industry and moves it closer to reaching the goal "of becoming one of the 100 largest global cosmetics manufacturers". Founded in 1972, Lise Watier has been a portfolio company of Canadian private equity firm Imperial Capital Group since 2007.
3 min read · 19 February 2016
BBAM, the aircraft leasing specialist that’s half-owned by Canadian private equity firm Onex Corp, is nearing a first close on Incline, its inaugural private equity fund targeting US$750 million, a source told Buyouts. The fund comes amid interest from limited partners in aircraft leasing, which has drawn demand from airlines and other customers seeking lower capital costs than direct ownership of jets.
2 min read · 18 February 2016
Spectral Medical Inc (TSX: EDT), a Canadian developer of treatments for endotoxemic septic shock, has closed a bought deal financing that generated gross proceeds of over $10 million. Canadian private equity firm Birch Hill Equity Partners participated in the offering, as did Toray Industries Inc. With the offering's closing, Birch Hill will own about 16 percent of Spectral's issued and outstanding shares. The company, which is based in Toronto, said it would use the proceeds to complete its sepsis-focused theranostics trial, commercialize its therapeutic hemoperfusion device, and other purposes.
4 min read · 18 February 2016
Canada Pension Plan Investment Board (CPPIB) and Welltower Inc (NYSE: HCN) have formed a joint venture to buy a 97.5 percent interest in a portfolio of seniors housing properties in Florida, known as Aston Gardens. The purchase price for the interest was US$555 million. With the deal's closing, CPPIB owns 45 percent of the joint venture, while Welltower owns the rest. Ashton Gardens, which consists of six private-pay, primarily independent-living senior living communities, is operated by Discovery Senior Living (DSL). DSL holds a 2.5 percent stake in the properties.
3 min read · 18 February 2016
The owners of Britain's Fox's Biscuits are in early stage talks to sell the business to rival biscuit maker Burton's Biscuit, owned by Ontario Teachers' Pension Plan, two sources told Reuters. The sale could value the company at around 340 million pounds (US$486 million).
2 min read · 18 February 2016
Canadian private equity firm Penfund has provided an incremental US$7.5 million second lien term facility to Pediatric Services Holding Corp (PSA Healthcare), a provider of home nursing services to medically fragile children in the United States. The facility, together with an incremental US$25.0 million first lien term facility, were used to support PSA's buy of Care Unlimited, a provider of pediatric home nursing services in western Pennsylvania. Last year, Penfund invested US$37 million of debt and equity in Atlanta, Georgia-based PSA. This was announced shortly after the company's acquisition by U.S. private equity firm J.H. Whitney Capital Partners.
3 min read · 17 February 2016
