Tuckamore buyout nixed, Orange Capital steps up with financing

The proposed management-led acquisition of Tuckamore Capital Management (TSX:TX), supported by Canadian private equity firm Birch Hill Equity Partners, has been terminated. The controversial deal, valued at around $60 million, was cancelled prior to the shareholders meeting called for July 31 to review it. Instead, U.S. investment firm Orange Capital has stepped up with $12.5 million in financing, which is intended to reduce Tuckamore's outstanding senior indebtedness. The transaction will give Orange Capital a 17 percent stake in the firm. Based in Toronto, Tuckamore is a private equity investor with holdings in seven companies.

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