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Canadian Private Market Recap: June 12

  • Posted By: Ari Cuperfain

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The major story of the week was CPPIB’s acquisition of GE Capital’s private equity lending arm Antares Capital. The $12 billion deal will establish the CPPIB as a major lender for middle-market private debt. Aside from the GE deal, the Canadian M&A mid-market was fairly active this past week, driven by both private equity investors and industry consolidators. For more information, continue reading below – here are the major deals of the week:

CPPIB Acquires Private Equity Lending Arm Antares from GE Capital
Manitoba Harvest to be Acquired by The Compass Group
Tribute Pharmaceuticals to Join with Pozen
Lucas Meyer Cosmetics to be Acquired by IFF
Topcon Announced Acquisition of Norac
Vega to be Acquired by WhiteWave Foods
Aspenleaf Closes Acquisition of Arcan Resources
Multipost Acquired by ACCEO Solutions
CanAmPac to be Acquired by PaperWorks Industries
Stingray IPO Brings in Roughly $180 Million

M&A
CPPIB Acquires Private Equity Lending Arm Antares from GE Capital

The Canadian Pension Plan Investment Board (CPPIB) has reached an agreement with GE Capital to purchase its private equity lending portfolio, Antares Capital. The transaction will be valued at $12 billion. Based in Chicago, IL, Antares is the leading lender to private equity investors and mid-market PE-backed transactions in the United States. CPPIB CEO Mark Wiseman commented about the deal in a statement: “This acquisition exemplifies our strategy to achieve scale in key sectors through platform investments. It secures a market-leading business that is exceptionally well positioned.”

Manitoba Harvest to be Acquired by The Compass Group

Compass Diversified Holdings, affiliate of U.S. private equity firm The Compass Group, has announced its intentions to buy Manitoba Harvest Hemp Foods. The transaction is valued at $132.5 million. Manitoba Harvest is based in Winnipeg, MB and is a retail provider of hemp-based food products. On the deal, Manitoba Harvest CEO Mike Fata said, “The acquisition of Manitoba Harvest by [Compass] is an exciting moment in our company’s history. With [Compass]’s proven history of supporting and growing niche market leaders, we are confident that we can further grow market share and continue to offer new innovative hemp-based food products to our customers. As our market continues to rapidly develop and consumers embrace the nutritional benefits of our products, with the added support of [Compass], we will be in a strong position to accelerate our long-term growth potential.” Manitoba Harvest is also called Fresh Hemp Foods Ltd., and its products can be found in about 7,000 stores across North America.

Tribute Pharmaceuticals to Join with Pozen

Pozen Inc. (NASDAQ: POZN) has reached an agreement to acquire Tribute Pharmaceuticals Canada Inc. (TSX-V: TRX), in a deal that will shift Pozen’s domicile to Ireland. Tribute will be bought for US$144 million. Both specialty pharmaceutical companies, Tribute is based in Milton, ON and Pozen is based in Chapel Hill, NC. Adrian Adams, former CEO of Auxillium Pharmaceuticals, was recently appointed to CEO of Pozen. The merged company, to be called Aralez Pharmaceuticals Plc, will focus on cardiovascular treatments. Pozen stock is up 37% since June 5.

Lucas Meyer Cosmetics to be Acquired by IFF

International Flavors & Fragrances Inc. (NYSE: IFF) has made a binding offer to buy Lucas Meyer Cosmetics, a company owned by Unipex Group Inc. The financial terms of the transaction are valued at about €283 million ($392 million). Lucas Meyer Cosmetics is based in Québec City, QC, and produces ingredients for the cosmetics and personal care industry. The company also has operations in France and Australia. IFF develops flavours and fragrances for consumer products, and is headquartered in New York, NY. “We believe IFF is the preferred partner for Lucas Meyer Cosmetics’ future development while preserving the continuity of the world-class, innovative and market-driven cosmetic ingredient expertise built over the years by our dedicated and loyal employees,” said Antonio Lara, VP and General Manager of Lucas Meyer Cosmetics.

Topcon Announces Acquisition of Norac

Topcon Positioning Group announced on Wednesday its plans to acquire NORAC Systems International. The financial terms of the deal were not disclosed. Based in Saskatoon, SK, NORAC offers engineering solutions to the agricultural industry aimed at improving farming efficiencies. Topcon manufactures and distributes products for a range of infrastructure applications including construction, agriculture, civil engineering and others. It is headquartered in Livermore, CA. About the deal, Bill Strelioff, president and CEO of NORAC said, “We are thrilled to have the opportunity to join the Topcon family. NORAC and Topcon have collaborated well in numerous precision agriculture development projects and know that our synergistic technologies and distribution channels make this a great fit.”

Vega to be Acquired by WhiteWave Foods

The WhiteWave Foods Company (NYSE:WWAV) announced that it will be acquiring Vega for US$550 million in cash. Vega offers plant-based nutritional supplements and other nutrition products such as powdered shakes and snack bars. It is based in Vancouver, BC. Whitewave is headquartered in Denver, CO and is a consumer packaged food and beverage company focused on plant-based products among others. “As a pioneer in the plant-based movement, we’ve introduced Vega to a core loyal fan base and we are confident that WhiteWave will provide us with the expertise and resources to further realize our vision of empowering the world to thrive through clean, plant-based nutrition,” said Charles Chang, President and Founder of Vega. Vega is in a state of growth, posting a 30% increase in net sales over the last twelve months (for total net sales of US$100 million in the last twelve months).

Aspenleaf Closes Acquisition of Arcan Resources

ARC Financial Corp. and Ontario Teachers Pension Plan (OTPP) portfolio company, Aspenleaf Energy Ltd, completed its previously announced acquisition of Arcan Resources Ltd. As agreed upon in April, the value of the transaction was just under $300 million, and included the transfer of Arcan’s existing debt to Aspenleaf. Arcan Resources is a Calgary, AB company engaged in the exploration, development and acquisition of petroleum and natural gas located in Canada’s Western Sedimentary Basin. Aspenleaf is an oil and gas company focused on the acquisition of assets in Western Canada, and is also based in Calgary.

Multipost Acquired by ACCEO Solutions

Multipost Ltd. was acquired last week by ACCEO Solutions Inc. The financial terms of the deal were not disclosed. ACCEO Solutions is based in Montreal, QC and provides financial information technology solutions to SMEs. Multipost is based in Toronto, ON and is a software developer for point of sale (POS) terminals in a variety of retail sectors. About the deal, Multipost President and GM Harry Magerman said, “We are very enthusiastic about combining our expertise with that of a company of the calibre of ACCEO Solutions, and thus allowing our loyal clientele to benefit from new opportunities, in terms of the quality of both the products and the services they need to grow.”

CanAmPac to be Acquired by PaperWorks Industries

PaperWorks Industries Inc. has agreed to acquire CanAmPac ULC from Atlas Holdings LLC for an undisclosed amount. Based in Napanee, ON, CanAmPac is a supplier of consumer packaging products. PWI is based in Philadelphia, PA, and also provides consumer packaging products and material. PWI is backed by U.S. private equity firm Sun Capital Partners.

Financing
Stingray IPO Brings in Roughly $180 Million

Stingray Digital Group Inc. (TSX: RAY.TO) has raised about $179.5 million in financing through its initial listing on the Toronto Stock Exchange. The Stingray IPO also included a $21 million over-allotment, which closed last Tuesday. Leading Stingray investor Canadian private equity firm Novocap said it expected to see an eight-fold return on the sale of its 29.4% stake (initially invested in 2007) according to peHUB Canada. Stingray is a global B2B company offering multi-platform music and in-store media solutions. They reach an estimated 110 million Pay-TV subscribers in over 100 countries. Stingray is headquartered in Montreal, QC and has over 235 employees both in Canada and internationally.

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