Clairvest Group has filed a lawsuit in a U.S. court to block the proposed merger of portfolio company Accel Entertainment Inc with TPG Pace Holdings Corp, a special purpose acquisition company (SPAC).
The deal, announced in June, would result in a combined entity with an expected initial value of about US$884 million, TPG Pace said.
Clairvest described the merger as an “improper action” by Accel that also violates the Canadian private equity firm’s shareholder approval rights and does not constitute a “valid drag-along sale in accordance with Accel’s charter.”
In 2016, Clairvest acquired a minority stake in Accel, a Bolingbrook, Illinois-based video gaming terminal operator, investing US$32.5 million.
TPG Pace is sponsored by an affiliate of U.S. private equity firm TPG.
Clairvest Files Lawsuit to Block Accel Entertainment’s Proposed Merger With TPG Pace
TORONTO, July 16, 2019 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) and Clairvest Equity Partners V (collectively, “Clairvest”) today announced that it has filed a complaint in the Circuit Court of Cook County, Illinois (Chancery Division), seeking injunctive relief to block the proposed merger between Accel Entertainment, Inc. (“Accel”), a Clairvest portfolio company, and TPG Pace Holdings Corp. while Clairvest pursues its claims against Accel and others before the American Arbitration Association. As described in the complaint, the proposed merger, which was announced on June 13, 2019, is an improper action by Accel that also violates a number of Clairvest’s shareholder approval rights and does not constitute a valid drag-along sale in accordance with Accel’s charter.
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753