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Brad Meikle

BRG Sports Inc, a maker of sports equipment, sportswear and accessories, has agreed to sell its Action Sports division to Vista Outdoor Inc for US$400 million. The deal, expected to close within 60 days, is in cash with an earn-out tied to future performance. The business being sold to Vista comprises some of BRG's leading brands, including the Bell, Giro, Blackburn and C-Preme. Scotts Valley, Calif.-based BRG said the deal will allow the company to pay down its debt, strengthen its balance sheet, and pursue growth initiatives focused on its Riddell brand. Fenway Partners and Ontario Teachers’ Pension Plan (OTPP) will maintain their investments in BRG, the company said.
Canadian private equity firm Catalyst Capital Group said Corus Entertainment Inc's recent response to the concerns of its minority shareholders about the proposed $2.65 billion buy of Shaw Media Inc is "inadequate and deficient". Catalyst, an investor in Corus, said it is concerned the transaction will see Corus "significantly overpay" for the asset by as much as $858 million. Catalyst Managing Director and Partner Gabriel de Alba said: "While this may be a good deal for the Shaw family, it is a bad deal for every Corus minority shareholder." Corus announced in January it had agreed to acquire Shaw Media from an affiliated company, Shaw Communications Inc.
The Public Sector Pension Investment Board (PSP Investments) has agreed to acquire a New England portfolio of hydroelectric assets totaling 1.4 gigawatts from French gas and power utility Engie Group. The assets, which have an enterprise value of US$1.2 billion, reflect core operational merchant hydroelectric facilities located on the Connecticut River in Massachusetts and the Housatonic River in Connecticut. PSP Investments, a Canadian pension fund manager, said the acquisition fits with its strategy to leverage industry-specialized platforms. The latter include H2O Power LP, a hydroelectric power platform majority owned by PSP Investments.
U.S. private equity firm Industrial Opportunity Partners (IOP) has sold its portfolio company Roadtrek Motorhomes Inc, a Canadian designer and manufacturer of motor homes, to Erwin Hymer Group. No financial terms were released. Based in Kitchener, Ontario, Roadtrek makes Class B motor homes and sells them through a network of recreation vehicle dealers in the United States and Canada. It received an investment from IOP in April 2011 as part of a recapitalization deal done in partnership with Roadtrek’s owner and senior management team. Erwin Hymer is a caravan and motor home manufacturer with headquarters in Bad Waldsee, Germany.
Stingray Digital Group Inc (TSX: RAY.A, RAY.B) has bought Nümedia, a Montréal-based provider of intelligent media solutions that enable in-venue music, experiences, communication, engagement and activation. The acquisition is valued at $2 million. Stingray, a technology-focused content provider and broadcaster, said the deal will reinforce its market position in the field of in-store media solutions. Montréal-based Stingray raised $179.5 million in an initial public offering in mid-2015. It continues be a portfolio company of Canadian private equity firm Novacap, Telesystem and other investors.
Canadian media and content company Corus Entertainment Inc (TSX: CJR.B) said that claims by Catalyst Capital Group about the proposed $2.65 billion acquisition of Shaw Media Inc are "misleading". Catalyst is reported to have said that the family controlling both Corus and Shaw Communications Inc, the seller of Shaw Media, stands to gain at least $50 million from the deal. Corus also criticized Catalyst's calculation of Shaw Media's fair market value, which suggested that Corus was overpaying for the asset. Catalyst, a Toronto-based private equity firm, is a minority investor in Corus.
A new report by the Canadian Venture Capital & Private Equity Association (CVCA) found robust investment results in Canada's venture capital (VC) and private equity (PE) markets in 2015. In the domestic VC market, a total of $2.3 billion was invested in 536 financing rounds last year, 12 percent more than in 2014. The CVCA found Canadian VC funds raised $2 billion in committed capital in 2015, also up from a year ago. Buyout and related PE market activity in Canada reflected 399 deals with values totaling $22.8 billion last year, an historically high amount, if down from the exceptional level reached in 2014, the CVCA said. Domestic buyout and PE funds secured $14.1 billion in committed capital last year.
Laces Group, a portfolio company of Canadian private equity firm Novacap, has acquired most of the assets and operations of Zenith Products Corp, a maker of bathroom furnitures, fixtures and accessories based in New Castle, Delaware. No financial terms were released for the deal, which will see Zenith’s management and operating team remain in place. Laces, a Canadian home fashion products specialist, said the acquisition gives it manufacturing capabilities in the United States as well as an expanded product range. Based in Montréal, Laces operates through its Maytex subsidiaries in the United States and through Banyo-Decolin in Canada. Novacap invested in the business in 2014.
Canadian pension funds achieved a return of 5.4 percent on their investments in 2015 as their strategy of diversifying internationally helped mitigate volatile market conditions, Reuters reported, citing research by RBC Investor & Treasury Services. The positive performance could largely be attributed to a lift from global equities, offsetting downward pressure from weaker domestic sectors, particularly commodities, resources and energy, an RBC executive said in a statement.
Groupe Marcelle Inc has bought Lise Watier Cosmétiques, a Montréal-based branded developer and manufacturer of cosmetics, skincare and fragrances sold in department stores and drugstores. The acquisition's value was not disclosed; however, the Caisse de dépôt et placement du Québec (CDPQ) said it has invested $18 million in the combination of the two companies. Groupe Marcelle said the acquisition makes it the leading business in Canada's beauty industry and moves it closer to reaching the goal "of becoming one of the 100 largest global cosmetics manufacturers". Founded in 1972, Lise Watier has been a portfolio company of Canadian private equity firm Imperial Capital Group since 2007.

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