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Canadian Private Market Recap: July 26

  • Posted By: Andrea Banerjee

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       Last week in M&A activity 40 year-old Canadian retail brand Comark was purchased by Stern Partners. Comark is the parent company of fashion brands Ricki's, Bootlegger and Cleo, and is just one of many retail chains that have struggled in the recent market. In financing news, Marina District Finance and Cargojet secured capital for continued development, and Vancouver's ProNAi Therapeutics raised over $158 million in its IPO. Here are the major deals of the week:

Sinoenergy buys JOG Capital’s New Star Energy for $215 Million
Fairfax India Will Buy Majority Stake in India’s National Collateral Management Services for $126 Million
Stern Partners Acquires KarpReilly-backed Retail Chain Comark
GDI To Buy Ainsworth Inc for $20.5 Million
Social Media Platform Expion Acquired by OMERS-backed Sysomos
Morneau Shepell To Acquire U.S. Benefits Division of Ceridian
CPPIB Will Extend $650 Million in funding to Marina District Finance
Tennenbaum Commits Up to $82.5 Million to Cargojet Expansion
ProNAi Therapeutics Earns $158.4 Million in Initial Public Offering

 

M&A

Sinoenergy buys JOG Capital’s New Star Energy for $215 Million

New Star Energy Ltd has been acquired for approximately $215 including net debt. The acquirer, which had originally remained undisclosed at the time the transaction announcement, is Sinoenergy Pacific Corp, a manufacturer of compressed natural gas, vehicle and gas station equipment in China. New Star is a Calgary-based producer of crude oil and natural gas, and has sold all outstanding shares to the buyer for $1.25 each. The company will continue to operate under its current name as a wholly owned subsidiary of Sinoenergy. “This is a win-win deal,” said New Star President and CEO, Steve Sugianto. “It’s a win for New Star shareholders who make a profit on their investment and a win for Sinoenergy Pacific … they got high-quality assets and a good management team.”

Fairfax India Will Buy Majority Stake in India’s National Collateral Management Services for $126 Million

PE fund Fairfax India Holdings (TSX: FIHu) has announced it will buy a 74 percent stake in National Collateral Management Services (NCMSL) for approximately $126 million. NCMSL is a commodities storage and services firm that designs and implements risk management solutions. Fairfax India Holdings is a private Canadian fund that targets Indian assets. Fairfax India had its initial public offering earlier this year and raised over $1 billion. The deal is expected to be completed by the end of 2015.

Stern Partners Acquires KarpReilly-backed Retail Chain Comark

Stern Partners, a private equity firm that specializes in retail, will acquire Canadian clothing chain Comark. Comark is based in Mississauga and is the parent company of retail brands Ricki’s, Bootlegger and Cleo. Comark announced earlier this year that it had obtained bankruptcy protection onder the Companies’ Creditors Arrangement Act, and began to solicit proposals from strategic buyers thereafter. No financial terms of the transaction were released, but Comark said the purchase price is expected to repay its secured lender Salus Capital in full. The deal is expected to close in August.

GDI To Buy Ainsworth Inc for $20.5 Million

GDI Integrated Facility Services Inc (TSX: GDI) has announced it will buy Ainsworth Inc for about $20.5 million. Toronto-based Ainsworth Inc is subsidiary of CEDA International Corp.and provides technical services including mechanical maintenance, HVACR, electrical and high voltage services for commercial, industrial, institutional, government and residential building clients across Canada. GDI is based in Montreal and provides integrated, tech-based facility solutions. It recently completed its IPO, and has said that the acquisition will enhance its service offering. “The dedication of our employees has enabled Ainsworth to be recognized as a leader in our field, and we view the combination with GDI as an opportunity to enhance our value proposition to our clients,” said Murray Leimert, President & COO of Ainsworth. “I am proud to join GDI and am excited about the growth opportunities that will result from combining the efforts of our organizations.”

Social Media Platform Expion Acquired by OMERS-backed Sysomos

Sysomos Inc has purchased the social marketing software company Expion LLC for an undisclosed amount. Sysomos is a provider of digital social intelligence and the portfolio company of OMERS Private Equity, previously an affiliate of Marketwired. It has offices in seven cities globally and a client roster of over 1,400 brands. Expion is based in Raleigh, North Carolina and offers enterprise solutions to clients in the form of integrated software for social marketing, content management and analytics. “The shared vision of Sysomos and Expion, coupled with strong capital backing, enables us to grow and scale as a combined force,” said Peter Heffring, CEO, Expion.

Morneau Shepell To Acquire U.S. Benefits Division of Ceridian

Canadian HR consulting and technology firm Morneau Shepell has announced that it will purchase the U.S. health and welfare benefits business of Ceridian Corp for an undisclosed amount. Moeneau Shepell is the biggest company of its kind in Canada, and a leader in employee and family assistance programs. Ceridian is based in Minneapolis, Minnesota and is a provider of human resources software and solutions. Under the terms of the acquisition, over 100 professionals from Ceridian will join Morneau Shepell along with 65 Canadian clients. “This transaction supports Morneau Shepell’s’ ongoing commitment to invest in and grow its business in the U.S., ” said René Beaudoin, Executive Vice-President, U.S. Region, and Chief Technology Officer of Morneau Shepell. “This deal will enhance Morneau Shepell’s ability to compete against large U.S. competitors and to service organizations of all sizes across North America.”

Financing


CPPIB Will Extend $650 Million in funding to Marina District Finance

Canada Pension Plan Investment Board has announced that CPPIB Credit Investments Inc (an affiliate of its wholly owned subsidiary) will provide a Senior Secured Term Loan in the amount of up to US $650 million to Marina District Finance Company. Marina District Finance is co-owned by subsidiaries of Boyd Gaming Corporation and MGM Resorts International. The company operates the Borgata Hotel Casino & Spa, including the Water Club at Borgata in Atlantic City, New Jersey. “We are investing in the senior secured loan facility of a market leader that generates strong cash flows, providing us with attractive risk-adjusted returns,” said Mark Jenkins, Senior Managing Director & Global Head of Private Investments, CPPIB.

Tennenbaum Commits Up to $82.5 Million to Cargojet Expansion

Tennenbaum Capital Partners has agreed to provide up to $82.5 million in financing to Cargojet Inc (TSX: CJT), a major Canadian air cargo services provider. According to Tennenbaum the deal will help Cargojet achieve additional capacity, support growth, and fund Cargojet’s conversion of Boeing 767-300ER passenger aircraft to freight. “Cargojet is pleased to have secured financing with Tennenbaum for its B767-300 aircraft deliveries,” said Dr. Ajay K. Virmani, President & CEO of Cargojet. “These new generation, long range, fuel efficient and environmentally friendly aircraft will enable us to expand the geographic reach and capacity of our network,” he added.

ProNAi Therapeutics Earns $158.4 Million in Initial Public Offering

ProNAi Therapeutics has begun trading under the symbol “DNAI” and completed its initial public offering of common shares on the NASDAQ Global Market. The company’s total proceeds of US$158.4 million include shares sold through the underwriters’ over-allotment option. ProNAi is based in Vancouver, British Columbia and develops therapies through its DNA interference platform for cancer patients and sufferers of hematological diseases. 

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