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Canadian Private Market Recap: April 20

  • Posted By: Ari Cuperfain

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  • Comments: 1

This past week’s deals in the Canadian private market saw a number of M&A transactions, asset purchases, and financings, including two take-private acquisitions by Canadian entities. Here are the major deals for the week.

M&A

Thoma Bravo, OTPP Complete Acquisition of Riverbed

In a US$3.5 billion take-private acquisition, US private equity firm, Thoma Bravo, along with the Teachers Private Capital on behalf of the Ontario Teachers’ Pension Plan (OTPP) acquired Riverbed Technology Inc. Riverbed is the leader in application performance infrastructure and offers solutions in hybrid IT. Riverbed brings in more than US$1 billion of annual revenue, with over 26,000 customers.

Cirque du Soleil Sells Majority Stake to TPG-Led Investor Group

Cirque du Soleil has confirmed the sale of a majority stake to global private equity investment firm, TPG. Minority stakes will go to Shanghai-based Fosun Capital Group and Quebec-based Caisse de Depot. While the terms of the deal were not disclosed, estimates suggest the sale will total between $1.5 and $2 billion. The sale is meant to provide Cirque du Soleil with needed capital and also to provide the opportunity for expansion, especially into the Chinese market.

Unipex Solutions Canada Acquired by KDG

In a strategic cross-border transaction, Unipex Solutions Canada was bought by KODA Distribution Group (KDG) for an undisclosed amount. Unipex is a developer of specialty chemical products within the food, pharmaceutical and several industrial sectors, and is based in Quebec. KDG distributes specialty chemicals throughout North America, with a complementary industry focus to Unipex. According to KDG CEO and President, Frank Bergonzi, “Unipex is a perfect fit for us. Our strategy has always encompassed growth geographically, and this acquisition expands our reach in the Canadian market.” Unipex was a unit of Unipex Group, which is backed by IK Investment Partners.

Arcan Resources Agrees to New Acquisition Bid by Aspenleaf

After rejecting a previous bid in August 2014, Arcan Resources Ltd. (ARN.V) has agreed to a new bid by PE-backed Aspenleaf Energy Limited. This time, Aspenleaf offered $0.11 per share, for a total value of $143 million. Aspenleaf will also assume $156 million worth of Arcan’s debt. Arcan Resources is an Alberta 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. Arcan management noted that falling oil prices were a factor in considering Aspenleaf’s most recent bid. Shareholders will vote on the deal during Arcan’s upcoming shareholders’ meeting this June.

Concordia Completes $1.2 Billion Assets Covis Pharma, Cerberus

Concordia Healthcare Corp. (TSX: CXR), a Canadian healthcare company focused on legacy pharmaceuticals and orphan drugs, completed the purchase of US$1.2 billion worth of assets from Switzerland’s Covis Pharma Holdings SARL. Concordia will be adding 18 new products to its portfolio following the acquisition. About the purchase, Concordia CEO Mark Thompson said, “The portfolio of products we acquired from Covis feature stable revenue, strong margins and free cash flow. These asset attributes strengthen our financial base, which should support our plans to continue building Concordia through organic growth and potentially more accretive, disciplined acquisitions.” The US$1.2 billion was paid in cash, generated from a combination of term loans, bonds and equity.

Financing

Seven Generations Energy Launches $425 Million Private Placement

Seven Generations Energy Ltd. (TSX: VII) has proposed a private placement of $400 million in senior notes, priced at 6.75%. Seven Generations is an oil and gas company focused on the development of the Kakwa River Project. The private placement is primarily meant to fund their developing Kakwa River Project, and the senior notes will be due by 2023. Seven Generations is headquartered in Calgary, Alberta.

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