Private Equity
Ontario Teachers' Pension Plan has completed its previously-announced acquisition of Heritage Royalty LP, a former subsidiary of Cenovus Energy Inc, a Calgary-based oil business. Ontario Teachers paid $3.3 billion for Heritage, which holds about 4.8 million acres of royalty interest and mineral fee title lands in Western Canada. As reported by Reuters in June, the Canadian pension fund manager made the investment through its Natural Resources Group, which was set up in 2013 to acquire real assets, including oil and gas assets.
2 min read · 31 July 2015
International Flavors & Fragrances Inc (NYSE: IFF) has completed its acquisition of Lucas Meyer Cosmetics, a Québec City-based manufacturer of ingredients for the cosmetics and personal care industry. The deal was previously announced to value about €283 million ($392 million). The seller in the transaction was France's Unipex Group Inc, which has been a portfolio company of European private equity firm IK Investment Partners since 2012. IFF, a developer of flavours and fragrances used in consumer products, has its headquarters in New York.
2 min read · 31 July 2015
Investors in North American Palladium Ltd (NAP) (TSX: PDL), a Toronto-based precious metals producer, have approved a previously-announced recapitalization agreement with Brookfield Asset Management‘s private equity group. Debenture-holders voted 97.56 percent in favour of the transaction, while shareholders voted 80.63 percent in favour. As a result, amounts owing to Brookfield will be converted into equity, giving the firm 92 percent of NAP’s outstanding common shares. With the deal’s closing, the board of directors will be reconstituted to include Brookfield Managing Partners Peter Gordon and David Nowak. NAP is focused on its flagship Lac des Iles palladium mine in northern Ontario.
6 min read · 30 July 2015
Toronto-based menswear retailer Grafton Fraser Inc, which was acquired by Gordon Brothers Group in 2007, has bought all 35 Jones New York retail stores across Canada. No financial terms were disclosed. Grafton Fraser said it plans to grow the number of stores. It has also formed a long-term strategic partnership with Authentic Brands Group LLC (ABG), which bought Jones New York from an affiliate of Sycamore Partners in April. Based in New York, and with offices in Toronto and Los Angeles, ABG is owned by U.S. private equity firm Leonard Green & Partners. Leonard Green and Canada's Knight’s Bridge Capital Partners invested in the brand development and licensing company in 2010.
4 min read · 30 July 2015
Canadian merger and acquisition (M&A) activity experienced a fourth consecutive quarter of decline in Q2 2015, Canadian investment banking firm Crosbie & Co reported. Based on various data, Crosbie found 652 deals involving Canadian buyers and foreign affiliates in this period, or the lowest level of activity since the third quarter of 2013. However, deal values, totaling $75 billion, were at the second highest level observed in recent years. Domestic M&A activity (where the target is in Canada) reflected 435 deals valued at $17.6 billion in Q2 2015, also down year over year. Crosbie said the slower trends are being driven in resource industries, though restructuring initiatives may help revive M&A activity.
3 min read · 30 July 2015
U.S. private equity firm Brazos Private Equity Partners has agreed to sell Vision Source, a former subsidiary of TLC Vision Corp, a Canadian eye care services business. Brazos is selling the company to Essilor International SA for an undisclosed price. A provider of products and services to optometrists, the Kingwood, Texas-based Vision Source was acquired by Brazos in 2011 from TLC's owners, Charlesbank Capital Partners and HIG Capital. Calgary eye care specialist FYidoctors bought the Canadian assets of Vision Source in 2013.
3 min read · 30 July 2015
Torstar Corp (TSX: TS.B) has acquired a 56 percent interest in VerticalScope Inc, a digital media company with headquarters in Toronto. The total consideration paid by Torstar was $200 million based upon an enterprise value of $404 million. As part of the transaction, Torstar has acquired the minority stake held in VerticalScope by U.S. private equity firm ABRY Partners. ABRY invested in the company in 2011. VerticalScope owns and operates more than 600 consumer shopping portals and enthusiast forum websites serving the automotive, powersports, outdoor, home, technology, sports, and health vertical markets. Torstar owns the Toronto Star and other media outlets.
8 min read · 29 July 2015
A subsidiary of GFL Environmental Inc has bought Anpro Environmental Group Inc, Anpro Excavating & Grading Ltd and Pro-Green Demolition Ltd. The financial details of the transaction were not disclosed. Based in Concord, Ontario, the affiliated businesses specialize in excavation and demolition projects. GFL, a diversified environmental services company, said the acquisition will give it access to new customers and cross-selling opportunities, and position it to assume new infrastructure projects. The Vaughan, Ontario-based GFL reorganized its share capital last November. It is backed by Hawthorn Equity Partners and Highbridge Principal Strategies.
2 min read · 29 July 2015
U.S. mid-market private equity firm HGGC has agreed to make an undisclosed investment in Dealer-FX Group Inc, a provider of customer experience and process automation software for auto dealership service departments in the United States and Canada. Dealer-FX, which has its primary offices in Las Vegas and Toronto, said the partnership with HGGC will help it continue to expand and develop new solutions. Vaquero Capital LLC provided financial advice to the company on the transaction, while Evercore advised HGGC.
4 min read · 29 July 2015
Constellation Software Inc (TSX: CSU) has acquired Datamine, the mining software business of training solutions provider CAE Inc (NYSE, TSX: CAE). The financial terms of the deal were not published. Constellation, a Toronto-based software company, said Datamine, its first investment in the mining industry, will operate within its Vela Software Group. Publicly listed in 2006, Constellation remains a portfolio investment of OMERS Private Equity.
3 min read · 28 July 2015
