Kirk Falconer
Nellson Nutraceutical LLC, a portfolio company of U.S. private equity firm Kohlberg & Co, has agreed to buy Le Groupe Multibar Inc, a manufacturer of nutritional and snack bars based in Montréal. The financial terms of the transaction were not published. The seller is Canadian private equity firm Novacap, which has invested in Multibar since 2003. Nellson, a U.S. manufacturer of nutritional bar and powder products, said the acquisition will increase its production capabilities, expand its product lines, and diversify its customer mix. The deal is expected to close within 60 days. In October, Novacap raised $300 million in the first close of Novacap Industries IV LP, and re-invested in Knowlton Development Corp (KDC).
Canadian private equity firm Russell Square Partners has led a substantial equity investment in Bitmaker Labs. The value of the deal was not published. Founded in 2012, Bitmaker is a provider of education in computer programming and technology, including web development and user experience design. Concurrent with Russell Square's investment, the company announced the appointment of a new management team led by president Andrew Mawer and CEO Craig Hunter. Bitmaker said proceeds of its investment will support curriculum development, hiring of additional teachers, improvements to its Toronto flagship location, and expansion opportunities.
Mitel Networks Corp (TSX: MNW) (Nasdaq: MITL) has withdrawn its $574 million offer to acquire ShoreTel Inc (Nasdaq: SHOR), a U.S.-based business communications solutions provider. Mitel said the decision was reached after the "repeated refusal of ShoreTel's board of directors to engage in discussions of any kind regarding a potential transaction." Reuters reported last week that ShoreTel saw the offer as undervaluing its business. The Ottawa-based Mitel, which is backed by Francisco Partners, Wesley Clover International Corp and other investors, disclosed it was trying to buy ShoreTel in October.
An affiliate of U.S. private equity firm Peak Rock Capital has invested in Highline Produce Ltd, a Canadian producer of mushrooms. The financial details of the transaction were not released. Based in Leamington, Ontario, Highline produces, packages, and distributes varieties of fresh white, mini bella, portobella, and exotic mushrooms for the retail and food service end markets. The company said the partnership with Peak Rock will increase its capabilities for achieving growth and allow it to pursue new product development.
Seven Generations Energy Ltd has closed its previously announced initial public offering (IPO), raising aggregate gross proceeds of $931.5 million, exceeding its target of $810 million. The Calgary-based company is now listed on the Toronto Stock Exchange under the symbol "VII". Seven Generations is focused on a liquids-rich natural gas property in northwest Alberta. Its leading private equity investors are ARC Financial Corp and KERN Partners, which were among its backers at the time of the company's founding in 2008, and Canada Pension Plan Investment Board (CPPIB), which invested at a later date.
Canadian private equity firm Novacap has led a more than $165 million investment in Knowlton Development Corp (KDC), a Knowlton, Québec-based manufacturer of health and beauty products. Novacap was joined in the deal by the Caisse de dépôt et placement du Québec, Fonds de solidarité FTQ, Investissement Québec, Export Development Canada and Fondaction CSN. Novacap previously invested in KDC in 2002. The investors said a new partnership aims to support KDC's growth plan, which includes reaching a billion dollars in annual revenues within a few years. Novacap managing partner Jacques Foisy was interviewed by peHUB Canada about KDC and the first close of Novacap Industries IV LP.
Canadian mid-market private equity firm Novacap has not yet begun broad marketing of its fourth traditional industries fund, Novacap Industries IV LP. It has nonetheless already managed a first close that puts it within close reach of its target. Earlier this month, Fund IV secured $300 million in institutional capital commitments, which represents nearly 71 percent of the $425 million targeted in total.
U.S. public utility holding company Cleco Corp (NYSE: CNL) has agreed to be purchased by a group of North American infrastructure investors led by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corp (bcIMC), and that includes John Hancock Financial. The deal values Cleco at around US$4.7 billion, including US$1.3 billion of assumed debt. Based in Pineville, Louisiana, Cleco's primary operating business is Cleco Power LLC, a regulated electric utility. Upon the close of the acquisition, which is expected in to take place in the second half of 2015, the company's new owners will refinance its existing bank debt.
In 2006, David Rogers left his job as the head of the private equity group at Ontario Municipal Employees Retirement System to pursue a long-cherished ambition. The result was Caledon Capital Management, a Canadian portfolio management and advisory firm that provides institutional investors with new ways of accessing private equity and infrastructure. Seven years on, Caledon has emerged as a major player on the global institutional LP landscape, overseeing client assets of more than $5 billion.
Zafin, a provider of relationship banking software to the financial services industry, has received US$15 million in funding from U.S. private growth equity investor Kayne Partners. Proceeds of the deal will enable Zafin to expand its international sales and marketing efforts, as well as accelerate its product roadmap. Based in Vancouver, the company was founded by CEO Al Karim Somjii in 2002. Zafin is also a portfolio investment of Canadian growth finance firm Beedie Capital Partners, which provided $5 million in convertible debt and standby facilities to the company last December. Kayne Partners is a subsidiary of Kayne Anderson Capital Advisors.