Canada’s top 10 first-half private equity deals had disclosed values of more than $13.4 billion, up 89 percent from the $7.1 billion invested in the top 10 deals at the same time in 2016.
The number is based on PE Hub Canada’s list of the largest deals announced in January through June, supplemented by preliminary Thomson Reuters data. It suggests the domestic market may be poised in 2017 to end a three-year decline in investment activity.
In fact, H1 2017 is the strongest first half on record, according to preliminary Thomson Reuters data. Dollar flows for all deals hit $14.6 billion in this period, compared to $18.4 billion invested in 2016 as a whole. The data also point to year-over-year growth in deal volumes.
H1 2017’s top deals are led by Vista Equity Partners’ $4.8 billion acquisition of DH Corp, the largest Canadian PE deal in three years.
1) DH Corp take-private deal
DH Corp, a Toronto financial-tech-services company, was taken private in June by Vista Equity Partners. The acquisition was valued at $4.8 billion. Vista reportedly competed with other PE firms for DH, which it merged with Britain’s Misys. The combined entity was named Finastra.
2) RBI add-on acquisition
In March, Restaurant Brands International, owner of fast-food chains Burger King and Tim Hortons, bought Popeyes Louisiana Kitchen for $2.4 billion (US$1.8 billion). Oakville, Ontario’s RBI was formed in 2014, when 3G Capital-backed Burger King acquired Tim Hortons for $12.6 billion.
3) Milestone Apartments purchase
Starwood Capital Group acquired Milestone Apartments REIT, an U.S.-residential-property owner and manager that went public in Toronto in 2013. The transaction, completed in April, took the company private for about $1.7 billion (US$1.3 billion).
4) Osisko metals portfolio buy
Osisko Gold Royalties in June agreed to buy a precious-metals portfolio from Orion Mine Finance for $1.13 billion. The Montréal mining royalty and stream company is backed by Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ, which together will fund 41 percent of the payment.
5) Arctic Glacier sponsor-to-sponsor
In March, Carlyle Group bought Arctic Glacier Holdings, a Winnipeg manufacturer of packaged ice, from HIG Capital, which acquired it out of bankruptcy in 2012. Terms weren’t disclosed, but Moody’s reported the purchase price at about $966 million (US$723 million).
6) Canam take-private deal
Canam Group, a Saint-Georges, Québec, maker of customized construction products, in April agreed to be taken private by American Industrial Partners and the Dutil family. Expected to close this year, the $875 million deal is backed by Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ, Canam’s existing investors.
7) Apollo Health, JemPak acquisitions
In January, Acasta Enterprises acquired three businesses in a single $1.1 billion deal. They included Toronto consumer staples companies Apollo Health & Beauty Care and JemPak, which together accounted for about $525 million of the total. Acasta, a SPAC, is planning to launch as a PE firm.
8) Sirius XM Canada parent-led buy
Sirius XM Canada Holdings, a Toronto audio-entertainment provider, was taken private by a vehicle owned by its parent, Sirius XM Radio, as well as Slaight Communications and Obelysk Media, a PE firm. The transaction, completed in May, valued the company at about $472 million.
9) Vesta Energy investment
Vesta Energy secured about $305 million in financing in May. The lion’s share of the round, or $295 million, was supplied by Riverstone Holdings and JOG Capital. Based in Calgary, Vesta is focused on light oil exploration and production.
10) Cona Resources sponsor-to-sponsor
Waterous Energy Fund in April agreed to buy a 67 percent stake in Cona Resources, a Calgary crude-oil producer. The price tag is $244 million. The sellers are Riverstone Holdings and NGP Energy Capital Management, which have backed Cona, formerly Northern Blizzard Resources, since 2009.
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