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Canadian Private Market Recap: Aug 31

  • Posted By: Andrea Banerjee

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Last week it was announced that Securite Above has agreed to be purchased by Hitachi Systems Ltd, a subsidiary of Japan’s Hitachi Ltd. This will support the company's global strategic growth plan to stay competitive in the IT security market. Calgary's Encana has also decided to sell, handing over its Haynesville natural gas assets in a $850 million transaction to GEP Haynesville LLP. In financing news, Brookfield Asset Management has made its first investment in Indian infrastructure from Gammon Infrastructure Projects Ltd. Here are the major deals of the week:

Encana to sell Haynesville natural gas assets for $850 mln: Reuters
CI Capital Partners Closes Sale of KIK to Centerbridge
Onex Sells Tropicana Las Vegas for $360 Million
Securite Above To Be Acquired by Japanese Hitachi Systems Ltd
WSP Secures $62.5 Million Investment from Caisse de depot
Happy Creek Minerals to Raise $1.1 Million in PE Financing
Brookfield Invests in Indian Infrastructure

M&A

Encana to sell Haynesville natural gas assets for $850 mln: Reuters
 

Encana Corp (ECA.TO) has announced that it will sell Haynesville natural gas assets in Louisiana to GEP Haynesville LLC for $850 million. Encana produces, transports and markets natural oils and gas. Its current focus is on concentrating its spending on regions rich in valuable natural resources and also selling off assets. The company has aid that by the year 2020 it will reduce its gathering and midstream investments by roughly $480 million on an undiscounted basis. GEP Haynesville LLC is a joint venture between GeoSouthern Haynesville LP and funds managed by GSO Capital Partners LP. 


CI Capital Partners Closes Sale of KIK to Centerbridge

Last week, North American PE firm CI Capital Partners completed its sale of KIK Custom Products. KIK is a manufacturer of household, pool and spa treatment products based in Concord, Ontario. The company was acquired by CI in 2007. Although the financial details of the transaction were not disclosed, it has been suggested that the sale could be valued at over $1.5 billion. “CI Capital has supported us as we invested in the company’s organic growth, executed an M&A strategy and successfully expanded into new business lines,” said Jeff Nodland, KIK’s CEO. “We look forward to continuing the Company’s growth trajectory with Centerbridge, and we will continue to provide the industry-leading service and expertise our customers have come to expect from us.”

Onex Sells Tropicana Las Vegas for $360 Million

Canadian PE firm Onex has completed its previously announced sale of the hotel and casiso Tropicana Las Vegas to Penn National Gaming. The transaction was valued at $360 million with Onex receiving net proceeds totaling $230 million. Onex is based in Toronto, Ontario with locations in New York and London. It partnered with Alex Yemendijian in 2009 to acquire a majority interest in the hotel and casino. “We are pleased to have partnered with Alex Yemenidjian and thank him and his team for the great efforts and commitment they made in revitalizing the Tropicana Las Vegas,” said Timothy Duncanson, a Managing Director of Onex.

Securite Above To Be Acquired by Japanese Hitachi Systems Ltd

It has been announced that Grenville Strategic Royalty – backed Securite Above has agreed to be purchased by Hitachi Systems Ltd, a subsidiary of Japan’s Hitachi Ltd. The financial details of the deal were not disclosed. Securite Above Inc is a global security solutions provider that serves customers in over 40 countries. It has recently grown its presence and business capabilities in Asia, while strengthening its service offerings and security consulting business. The transaction is expected to be completed in October. Ray Georges Chehata, President and CEO of Above Security, said “We have started 18 months ago a global strategic growth plan to stay competitive in the actively consolidating IT security market. Now by joining the Hitachi Systems Group we have found a global partner that embraces our vision and will allow us to continue to run as a separate entity, while further enhancing our capability to continue to give our clients the highest level of services without compromising the values that made Above Security a successful and respected player globally.”

Financing

WSP Secures $62.5 Million Investment from Caisse de depot

WSP Global Group Inc has received an investment of $62.5 million from the Caisse de dépôt et placement du Québec to fund its proposed acquisition of MMM Group Ltd. MMM is based in Montreal, Quebec, and is a provider or engineering services. The company has received over $400 million to support WSP’s growth in recent years. This most recent investment will strengthen WSP’s expertise in public-private partnerships and its presence in domestic transportation infrastructure. “This new investment by la Caisse is consistent with the business relationship we have built with WSP, a global firm well rooted in Québec, to support its growth strategy through acquisition,” said Christian Dubé, Executive Vice-President, Québec. “The acquisition of MMM Group will enable WSP to strengthen its presence in Canada’s transportation and infrastructure sectors and further its expertise in PPPs, particularly in Ontario.”

Happy Creek Minerals to Raise $1.1 Million in PE Financing

Happy Creek Minerals Ltd (TSXV: HPY) intends to raise $1.1 million after arranging for a private placement financing with Resource Capital Funds V1 LP (RCF) of Denver, Colorado. Happy Creek is a mining exploration company based in Vancouver, British Columbia. The Company intends to complete a non-brokered, non-flow-through, private placement of CDN $1,100,000 through the sale of 10 million Units, each of which will consist of one common share and one half of one share purchase Warrant. In addition to providing general working capital, this financing will be used to advance the Company’s Fox tungsten project in British Columbia. David Blann, President and CEO of Happy Creek said, ”The Company is very pleased to have RCF take a significant interest in the Company. It is an experienced, technically strong and financially capable international institution. We look forward to further advancing our 100% owned Fox tungsten project.”

Brookfield Invests in Indian Infrastructure

Brookfield Asset Management has made its first major investment in Indian infrastructure last week with the purchase of six road and three power projects from Gammon Infrastructure Projects Ltd. Brookfield will make the purchase with the Core Infrastructure India Fund Pte Ltd. Financial details of the transaction were not disclosed. The purchase comes on the heels of a long period of economic downturn that has driven Indian infrastructure firms to try to sell assets to pay off debts. “This transaction represents Brookfield’s first major investment in Indian infrastructure, and provides us a great platform to participate in the Indian growth story over the long term,” said Anuj Ranjan, managing partner at Brookfield.

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