Private Equity
A regional fund affiliated with the Fonds de solidarité FTQ has invested $1 million in J.M. Bastille Acier Inc, a trader and distributor of ferrous and non-ferrous metals in Québec and the Maritime provinces. The funding was provided to support the takeover of the Rivière-du-Loup, Québec-based company by operator Jean-Claude Chouinard. With the deal's closing, the 45-year old company has been renamed Acier Québec-Maritimes.
2 min read · 03 February 2016
Ontario Teachers' Pension Plan has appointed Andrew Claerhout to the expanded role of senior vice-president, infrastructure and natural resources. He will be responsible for overseeing infrastructure acquisitions and asset management, along with investments in oil and gas, farmland, timberlands and other resource sectors. Claerhout joined Ontario Teachers in 2005 from Canadian private equity firm Edgestone Capital Partners, where he served as vice president. Last month, Ontario Teachers named Bjarne Graven Larsen its new executive vice president and CIO.
3 min read · 03 February 2016
Alaris Royalty Corp recently made a US$13.3 million ($18.5 million) contribution to Mid-Atlantic Health Care LLC, a nursing and rehabilitation provider with 21 facilities in Maryland and Pennsylvania. Alaris also agreed to commit another US$14 million to the Timonium, Maryland-based company. Both investments are linked to initial distributions from Mid-Altantic. Alaris reported that its first commitment to Mid-Atlantic, which closed at the end of December, brought its total capital deployed in 2015 to $173.5 million. That is the largest annual deployment to date by the Calgary-based alternative equity firm.
9 min read · 03 February 2016
U.S. home improvement retailer Lowe's Cos Inc agreed to buy Canada's Rona Inc in a deal valued at $3.2 billion, winning over Rona's board with a far higher offer than its previous unsolicited bid in 2012, Reuters reported. Rona's largest investor, the Caisse de dépôt et placement du Québec, said it would accept the offer.
2 min read · 03 February 2016
Canadian private equity firm DRI Capital has bought a portion of a royalty entitlement relating to the sales of Zytiga, a prostate cancer therapy. No financial terms were released. The seller in the deal was The Institute of Cancer Research, a London-based cancer research organisation, which is also entitled to a milestone payment if certain conditions are met. Zytiga is marketed by Johnson & Johnson. It reported the drug's global sales to be US$2.2 billion in 2015. Toronto-based DRI is currently investing from its third healthcare royalty fund, Drug Royalty III, which raised US$1.45 billion in 2013.
4 min read · 02 February 2016
Key Safety Systems Inc (KSS), a supplier of advanced engineered safety products, has agreed to be acquired by China's Ningbo Joyson Electronic Corp. The cash deal is valued at about US$920 million and is expected to close in the first half of 2016. It will create an automotive supplier business with pro forma combined worldwide sales of about US$3 billion, the companies said. Following the acquisition, KSS will continue to operate as an independent entity based in Sterling Heights, Michigan. KSS is backed by FountainVest Partners, Canada Pension Plan Investment Board (CPPIB) and Crestview Partners. CPPIB invested in the company alongside FountainVest in 2014.
5 min read · 02 February 2016
Low energy prices will help accelerate Canadian merger and acquisition activity in 2016, according to a new report by Citi in partnership with Mergermarket. A Mergermarket survey of 50 Canadian senior executives found 70 percent of respondents believe the appetite for deals will rise in the months ahead. The biggest increases are expected in domestic and inbound deals. Along with weak commodity prices, a primary driver of Canadian M&A activity will be private equity demand, which is expected to influence both inbound and outbound transactions, the survey found.
3 min read · 02 February 2016
Canadian private equity firm Novacap has invested in Intelerad Medical Systems Inc, a medical imaging company based in Montréal. No financial terms were disclosed. Founded in 1999, Intelerad is a developer of software solutions that manage medical images, workflow and data for hospitals, imaging centres and radiology groups in North America, the United Kingdom and Australia. The investment will allow Intelerad to enhance its operations, engage in strategic growth opportunities, accelerate funding of key research initiatives, and continue building its product portfolio. Novacap made the investment via Novacap TMT IV LP, which raised $375 million in 2014.
3 min read · 02 February 2016
Brookfield Asset Management has withdrawn an offer to buy the 24.4 percent stake in infrastructure company Invepar held by Brazil's Grupo OAS, Reuters reported. The deal was key to helping OAS emerge from bankruptcy protection proceedings. Brookfield had offered to pay about US$341 million for the Invepar stake and secured the right to outdo bids from any other interested party.
2 min read · 02 February 2016
Chubb has unveiled a new private equity practice to provide specialized insurance solutions to U.S. and Canadian private equity firms and their portfolio companies. Chubb said the practice will bring greater underwriting expertise and product capabilities to a broad range of companies. Seth Gillston, formerly an executive vice president at ACE Risk Management, will lead the practice. Last month, ACE Ltd completed its acquisition of Chubb Corp. Chubb has its Canadian headquarters in Toronto.
4 min read · 02 February 2016
