Private Equity
Australian port operator Qube Holdings Ltd said a Chinese sovereign wealth fund was taking part in its US$6.3 billion bid for rail giant Asciano Ltd, Reuters reported. Qube revealed the participation of China Investment Corp as it made the binding cash-and-share offer, which narrowly bests an offer from Canada's Brookfield Asset Management.
2 min read · 28 January 2016
Primus Telecommunications Canada Inc, which sought and obtained creditor protection earlier this month, has agreed to be bought by Birch Communications Inc, a U.S.-based provider of IP-based communications, broadband, cloud and IT services. No financial terms were disclosed. Founded in 1997, Toronto-based Primus is a telecommunications service provider in the domestic market. It was acquired by U.S. private equity firm York Capital Management in a US$129 million deal in May 2013.
1 min read · 27 January 2016
The Institutional Limited Partners Association (ILPA) has hired Shawna Kaufman as its new managing director, responsible for membership and events. Kaufman previously led Monitor Deloitte’s customer and marketing strategy practice in Canada. Toronto-based ILPA is a member-driven organization focused on promoting the interests of private equity limited partners.
2 min read · 27 January 2016
Component Hardware Group Inc (CHG), a portfolio company of U.S. private equity firm Windjammer Capital Investors, has acquired Specialty Food Service Hardware Inc and sister company Vision Parts & Accessories Inc. No financial terms were disclosed. Specialty and Vision, which have their headquarters in Markham, Ontario, are providers of components and parts to the commercial food service and wholesale plumbing markets in Canada. Windjammer, which acquired Lakewood, New Jersey-based CHG in 2013, said the deal will advance the company's strategic growth goals by expanding its footprint in Canada.
3 min read · 27 January 2016
Keane Group, a portfolio company of U.S. private equity firm Cerberus Capital Management, has agreed to buy the majority of U.S. pumping assets belonging to Trican Well Service Ltd (TSX: TCW), a Calgary-based oilfield services provider. The deal has a total consideration of US$247 million. It is comprised of a US$200 million cash payment and a minority interest in Keane that will give Trican two seats on the former's board of directors. Houston-based Keane, a well completion services provider, said the acquisition will triple its fracturing capacity, give access to new technology, add engineering capabilities, and expand its geographic reach. The deal is expected to close by mid-March.
3 min read · 27 January 2016
American International Group Inc said it would spin off its mortgage insurance unit, cut jobs and sell its broker-dealer network as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn, Reuters reported. AIG agreed to sell AIG Advisor Group to U.S. private equity firm Lightyear Capital LLC and Canada's PSP Investments.
2 min read · 27 January 2016
U.S. private equity firm Lightyear Capital and Public Sector Pension Investment Board (PSP Investments) have agreed to acquire AIG Advisor Group Inc, a subsidiary of American International Group (AIG). No financial terms were disclosed. Headquartered in New York, AIG Advisor Group is a network of independent financial advisors with more than 5,200 independent advisors and US$160 billion in client assets under administration. With the deal, Lightyear and PSP will take the majority of the seats on the company's board of directors. PSP's Guthrie Stewart said the Montréal-based pension fund manager sees "multiple growth levers" to drive AIG Advisor Group's future performance.
5 min read · 26 January 2016
Canadian mid-market private equity firm Birch Hill Equity Partners has closed its fifth fund, Birch Hill Equity Partners V LP, at $1.3 billion in committed capital. The oversubscribed fund, backed by a mix of North American and European institutional investors and family offices, surpassed the $1.04 billion raised by Fund IV in 2011. As reported by PE Hub Canada in 2014, Birch Hill was expecting to raise close to the same amount for Fund V as its predecessor. The Toronto-based firm said it will probably make investments ranging from $30 million to $600 million, across 10 to 12 companies within Fund V. Birch Hill reports having delivered an 18 percent cumulative average rate of earnings growth over the past 20 years.
2 min read · 26 January 2016
Sterno Products LLC, a subsidiary of Compass Diversified Holdings (NYSE: CODI), has acquired Northern International Inc, a Coquitlam, B.C.-based provider of flameless candles and outdoor lighting products for the retail segment. Sterno paid $50 million for the company, including a $2.5 million earn-out payable over two years. Sterno said the deal strengthens its position in the food service lighting segment, and enhances Northern International's ability to grow. CODI, which holds a number of mid-market businesses, is an affiliate of The Compass Group, a U.S. private equity firm. Last year, CODI bought Winnipeg's Manitoba Harvest Hemp Foods for $132.5 million.
4 min read · 25 January 2016
GFL Escrow Corp, an affiliate of GFL Environmental Inc, plans to commence a private offering of at least US$250 million in senior unsecured notes. GFL, a diversified environmental services provider, said the net proceeds of the offering, along with other borrowings and the proceeds of an equity financing, will be used in part to fund its buy of solid waste business Matrec Services Inc. The company announced last October that it would acquire Matrec from TransForce Inc for about $800 million. Vaughan, Ontario-based GFL is backed by Highbridge Principal Strategies and Hawthorn Equity Partners. Earlier this month, it bought Anchor Shoring Group.
3 min read · 25 January 2016
