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Canadian Private Market Recap: Aug 9

  • Posted By: Andrea Banerjee

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IPOs seemed to dominate M&A news this week as luxury fashion retailer Neiman Marcus revealed its plans to go public with a target of $100 million. Toronto firm Gibraltar & Co Inc also filed a preliminary prospectus for an IPO targeted at raising $100 million for Gibraltar Growth Corp, a special purpose acquisition corporation. It was also announced that Onex Corp’s Jeld-Wen Holding Inc is working on a potential initial public offering too. In acquisitions news, European PE firm Permira and CPPIB have completed their previously announced joint acquisition of software company Informatica Corp for $5.3 billion. Here are the major deals this week: 

 

Novacap and Partner Investors Acquire Hallcon
SGS Purchases Canadian Marketing Agency Traffik
SunOpta Will Buy PE-Backed Fruit Supplier Sunrise Holdings for $450 Million
Permira and CPPIB Complete Informatica Acquisition for $5.3 Billion
Jeld-Wen Holding Working on an IPO
Caisse de depot Invests $6 million in Canadian Toy Company
Long-Run Exploration Agrees to Private Placement of common shares to Maple Marathon Investments, Lowers Debt
Gibraltar & Co Files for $100 Million IPO of SPAC
CPPIB-backed Neiman Marcus files for IPO

 

 M&A

 Novacap and Partner Investors Acquire Hallcon 

 

 Novacap has announced that its latest fund, Novacap Industries IV, has purchased Hallcon Corp. Novacap is based in Longueuil, Quebec and has said that the acquisition aligns with plans to expand its pan-Canadian private equity deals through its new Toronto office. Hallcon is a provider of outsourcing solutions for crew transportation in the freight and passenger railway industries. Prior to this transaction, it had been owned by the U.S private equity firm Southfield Capital since 2011. “Hallcon has a reputation for delivering safe, reliable and on-time transportation services in a category that is expanding very rapidly,” Novacap Senior Partner Domenic Mancini said. “We plan to support its growth into new sectors and in ways that add to its core and complementary service offerings.” 

 

 SGS Purchases Canadian Marketing Agency Traffik 

 

 SGS International Inc, a portfolio company of Onex Corp, has completed its purchase of Traffik Inc for an undisclosed amount. Traffik is a marketing services agency located in Toronto, Ontario that specializes in digital, experiential and content marketing with its focus in new technologies. The transaction will boost client services for both parties. Traffik's current CEO Mark Ferrier will oversee the Canadian SGS operations. "Over the course of the past 10 years, Traffik's services have evolved to accommodate the ever-changing media environment – and we've done it well," Ferrier said. "Together, SGS and Traffik offer a rare combination of skills and creativity. We're excited to see where this new opportunity takes us."

SunOpta Will Buy PE-Backed Fruit Supplier Sunrise Holdings for $450 Million

 Canadian organic foods supplier SunOpta Inc (SOY.TO) has announced that it will acquire Sunrise Holdings Delaware Inc for about $450 million. SunOpta is a leading global organic food company specializing in sourcing, processing and packaging of natural and certified organic food products, and is looking to strengthen its packaged products business with this sale. Sunrise Holdings is a supplier of frozen fruit and other fruit products for food service, private brand and retail clients. SunOpta is based in Brampton, Ontario and had a market value of about $915 million in May of this year. This deal is expected to add 10 cents to SunOpta’s adjusted earnings per share in fiscal 2016. "We have a strong balance sheet that provides the financial flexibility to complete this strategic, accretive acquisition," said Steve Bromley, SunOpta's Chief Executive Officer. "Sunrise Growers has significant share in a strong and growing category which is aligned with our core focus on healthy foods, and we expect to realize meaningful operational efficiencies and commercial synergies. We believe this transaction is transformative for SunOpta.” 

 Permira and CPPIB Complete Informatica Acquisition for $5.3 Billion

 European PE firm Permira and the Canada Pension Plan Investment Board have completed their previously announced joint acquisition of software company Informatica Corp. Microsoft Corporation and Salesforce Ventures have also agreed to become strategic investors in the company alongside the Permira funds and CPPIB. The transaction has been valued at approximately $5.3 billion, with Informatica stockholders receiving $48.75 in cash per share. As a result, Informatica’s shares will no longer be traded on the Nasdaq under the ticker symbol INFA. “We are very impressed by the long-term track record of success and product leadership that Informatica has achieved with Sohaib’s guidance over the past 11 years,” said Mark Jenkins, Senior Managing Director & Global Head of Private Investments, CPPIB. “We look forward to working with management, including Anil as acting CEO, to support the Company in its vision to become a multi-billion dollar leader in the broader data integration space.”

 Financing 

 Jeld-Wen Holding Working on an IPO

Jeld-Wen Holding Inc is working on a potential initial public offering. According to the Wall Street Journal, the IPO would see the Onex-controlled maker of windows and doors valued at as much as $4 billion. Jeld-Wen is located in Charlotte, North Carolina and has manufacturing locations in over 20 countries globally. It is controlled by Canadian PE firm Onex Corp, who invested $871 million in Jeld-Wen for a 58 percent stake in 2011.

 Caisse de depot Invests $6 million in Canadian Toy Company

 The Caisse de dépôt et placement du Québec has invested $6 million in Wooky Entertainment Inc. Wooky Entertainmen is located in Montreal, Quebec and is a developer of over 600 of toy and game products for the preteen market. Wooky Entertainment’ products are distributed The Montréal-based Wooky has developed more than 600 products that are distributed to retailers in 50 countries. The company hopes to strengthen its operations in the Asia-Pacific region with this investment. “Wooky represents exactly the type of company we want to support: an ambitious management team, an innovative product, a successful breakthrough into international markets,” said Christian Dubé, CDPQ’s Executive Vice-President, Québec. “This investment clearly illustrates that, regardless of size, when a project with strong potential is involved, CDPQ is on hand to accelerate the growth of Québec companies.”

Long-Run Exploration Agrees to Private Placement of common shares to Maple Marathon Investments, Lowers Debt

Long Run Exploration Ltd has agreed to a private placement of its common shares to Maple Marathon Investments in a transaction that will generate proceeds of $200 million and put 43.9 percent of common shares of Long Run in Maple Marathon’s possession. Long Run Exploration is based in Calgary, Alberta and specializes in light oil development and exploration in Western Canada. The proceeds of the private placement deal will reduce the company’s debt and improve its capital structure. 

Gibraltar & Co Files for $100 Million IPO of SPAC

Toronto-based private investment management firm Gibraltar & Co Inc has filed a preliminary prospectus for an IPO. The initial public offering seeks to raise $100 million for Gibraltar Growth Corp, a special purpose acquisition corporation (SPAC) geared to North American consumer-facing companies with an enterprise value of up to $750 million. Gibraltar Growth Corporation is a newly organized special purpose acquisition corporation incorporated under the laws of the Province of Ontario for the purpose of effecting a qualifying acquisition. The preliminary prospectus is still subject to completion or amendment.

CPPIB-backed Neiman Marcus files for IPO

 Luxury fashion retailer Neiman Marcus Group Inc has filed for an initial public offering for the second time. Neiman Marcus is based in Dallas, Texas and sells luxury handbags, shoes, accessories and cosmetics in over 41 self-named department stores. It is backed by Canadian Pension Plan Investment Board. The company’s IPO plans comes as the growth in the North America luxury market is expected to outpace global overseas. The company has set a nominal target of $100 million.

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