Kirk Falconer

U.S. private equity firm Clayton Dubilier & Rice has agreed to buy $500 million in convertible preferred shares in CHC Group Ltd (NYSE: HELI), a Vancouver provider of offshore flying services to the oil and gas industry. CHC also will pursue a $100 million rights offering of the shares to existing investors, with the aim of raising $600 million in total. Prior to the rights offering, Clayton Dubilier will take a 45 percent ownership stake in the company. U.S. private equity firm First Reserve Corp, which bought CHC in 2008 for around $1.5 billion, will retain an interest of around 29 percent. The company, which went public in early 2014, said it would use the new funds primarily to reduce debt.

ONCAP, the mid-market private equity investment arm of Onex Corp, has closed its sale of Mister Car Wash to U.S. private equity firm Leonard Green & Partners, as previously reported by peHUB Canada. ONCAP received net proceeds of US$423 million from its investment, which represents a gross multiple of capital invested of about 8.1 times and a gross IRR of 36 percent. Onex received net proceeds of US$153 million from the sale. Mister Car Wash is a Tucson, Arizona-based operator of car washes and lube centers in regional markets across the United States.

Corsa Coal Corp (TSX-V: CSO) has closed its previously announced buy of U.S.-based PBS Coals Ltd for US$60 million. The deal was facilitated by a US$33.4 million investment by Canadian private equity firm Sprott Resource Corp, giving it 19.9 percent of Corsa's outstanding shares. Other investors included U.S. private equity firm Quintana Capital Group, while Sprott Resource Lending Corp and other lenders assisted with the acquisition's funding. Based in Toronto, Corsa is focused on mining, processing and selling metallurgical and thermal coal. Concurrent with the transaction, the company appointed Quintana's George Dethlefsen as CEO.

ONCAP, the mid-market platform of Canadian private equity Onex Corp, has confirmed plans to sell U.S. car wash chain Mister Car Wash. A second quarter financial statement by Onex did not specify the buyer, but earlier reports have indicated it will be U.S. private equity firm Leonard Green & Partners. ONCAP is likely to take home approximately US$380 million in net proceeds from the deal. This translates into a gross multiple of capital invested of about 8x and a gross IRR of 36 percent.

The founder of yoga gear retailer Lululemon Athletica Inc (NASDAQ: LULU), Dennis "Chip" Wilson, has sold about 50 percent of his interest in the company for US$845 million. The buyer is former Lululemon investor U.S. private equity firm Advent International. The sale, which has received the support of the company's board of directors, represents about 13.85 percent of Lululemon's shares. With the deal's closing, Lululemon will expand its board to 12 members to include Advent's David Mussafer and Steven Collins. Advent and Highland Capital Partners invested in the Vancouver's Lululemon in 2005. Advent exited after the company went public in 2007.

PharmaCan Capital, a merchant bank that invests in global medical and legal marijuana markets, has completed a brokered private placement financing of common shares. The qualifying transaction is in connection to a proposed combination with capital pool company Searchtech Ventures Inc (TSXV: MJN) that will provide PharmaCan with a public listing. To date, PharmaCan has raised $12.9 million in proceeds. The Toronto-based merchant bank said it has made investments in several companies that are either licensed to produce medical marijuana or are in the process of seeking a license.

Northern Blizzard Resources Inc, a portfolio company of U.S. private equity firms NGP Energy Capital Management and Riverstone Holdings, has confirmed earlier reports of a planned initial public offering (IPO). The company has filed an IPO of 18.4 million common shares and a secondary offering of 7.9 million common shares. At $19 per share, gross proceeds will total approximately $500 million. The secondary offering, reflecting $150 million of the total, is being made by NGP and Riverstone.

Shareholders of Amaya Gaming Group Inc (TSX: AYA) have approved the previously announced US$4.9 billion purchase of Rational Group Ltd by the Montréal-based gaming company. Assets acquired by Amaya include Rational's online poker platforms PokerStars and Full Tilt Poker. Shareholders also approved the transaction's funding arrangement with GSO Capital Partners, an affiliate of U.S. private equity firm The Blackstone Group. GSO previously agreed to support the acquisition through US$655 million in share subscriptions.

Clairvest Group has closed its fifth partnership, Clairvest Equity Partners V LP (CEP V), at its $600 million hard cap. By all measures, fundraising this time around has surpassed past efforts by the Toronto-based mid-market private equity firm. CEP V is by far the largest third-party partnership in Clairvest's 27-year history. CEP IV, which closed in 2011, raised $467 million.

Smiles were brighter at Canadian private equity firm Imperial Capital Group and OPTrust Private Markets Group (PMG) this week as the two organizations completed a joint $121 million majority investment in Dental Corp, a group of Canadian dental care clinics. The investment is the largest in Imperial's 25-year history and its fifth healthcare deal. The transaction also holds significance for OPTrust PMG, which recently flagged an interest in sourcing more direct investment opportunities.