Gavin Penny
Deal values in Canada’s buyout and private equity (PE) market set a new record in 2018, according to final data released by Refinitiv. Investment activity reflected values of $37.2 billion in total last year, up 31 percent from 2017, and surpassing the prior record of $33.7 billion set in 2007. Transaction volumes, however, were down 10 percent year over year. Energy and environmental companies captured the largest share of dollar flows in 2018, or 33 percent. Dealmaking by Canadian PE funds abroad was also at an all-time high last year, as investors joined 162 transactions valued at $121 billion.
Investment in Canada's buyout and private equity (PE) market continued at a strong pace in the first nine months of 2018, according to final data released by Refinitiv. PE deployments hit $24 billion at the end of September, down 7 percent from a year ago, but still marking the second most active first nine months in dollar terms on record. Transaction volumes in this period were more significantly reduced, with 255 PE deals done, the lowest number in five years. Overall, Canadian PE market activity declined in Q3 2018, with 76 deals securing $5.6 billion. At the end of September, the oil and gas sector captured the largest share of values, or 28 percent.
DW Healthcare Partners, a Toronto-based healthcare private equity firm, recently announced that it sold its portfolio company PRIME Education to an undisclosed strategic buyer. DW Healthcare first invested in PRIME Education, a Florida-based healthcare education company, in November 2016. Financial terms were not disclosed.
Dealmaking in Canada’s buyout and private equity market continued at a strong clip in the first half of 2018, according to final data released by Thomson Reuters. Some 173 transactions, led by the $4.95 billion acquisition of Husky IMS International Ltd by Platinum Equity, captured $18.3 billion in total disclosed values in this period, up 26 percent on a dollar basis from a year ago. However, deal volumes saw a year-over-year decrease of 14 percent at the end of June, resulting in an above average disclosed value of $232 million. In terms of deal volume, Canadian information technology and media and consumer-related sectors were the most active in the first half, accounting for 36 and 21 transactions, respectively.
Dealmaking in Canada’s buyout and private equity market continued at a strong clip in the first quarter of 2018, according to final data released by Thomson Reuters. Some 81 deals, led by the $4.95 billion buy of Husky IMS International Ltd, captured $13.3 billion in total disclosed values in this period, up 98 percent on a dollar basis from a year ago. However, deal volumes saw a year-over-year decrease of 15 percent, resulting in an average disclosed deal value of $349 million, the highest ever reported. Canada's manufacturing and business-service sectors were the most active in Q1 2018, accounting for a respective 38 percent and 34 percent of disbursements.
Deal-making in Canada’s buyout and private equity market was especially robust in 2017, according to final data released by Thomson Reuters. Last year, 360 deals captured $33.4 billion in disclosed values, up 91 percent from 2016 on a dollar basis. Additionally, 2017 was in dollar terms the second most-active year in the Canadian market on record, falling only slightly behind 2007. Domestic deal volume increased at a more moderate 15 percent from 2016, pointing to the key influence of large-cap transactions. Canadian PE investors were active in 121 global deals in 2017, up 17 percent year over year, though disclosed values for these deals fell 33 percent.
Onex Corporation has acquired Laces Group, a provider of home fashions operating under the Maytex and Banyo–Decolin brands, with offices in New York, Montreal, and China. The deal was made in partnership with Laces Group's current management team. The company has been backed by Fondaction and Novacap since 2014. Financial terms were not disclosed; however, the investment was made by ONCAP IV, Onex's US$1.1 billion fund.
Brookfield Infrastructure announced this week that it has come to an agreement to sell its 28 percent minority stake in ETC Transmission Holdings to China Southern Power Grid International for approximately US$1.3 billion. The deal is expected to close in the first half of 2018. Santander GCB and Scotiabank are serving as financial advisers to Brookfield Infrastructure while Goodmans LLP is providing legal advice. ETC Transmission Holdings is the parent company of Transelec, a Chilean power transmission company.
Deal-making activity in Canada’s buyout and private equity market showed a marked decline in dollar terms in the first quarter of 2017, according to data released by Thomson Reuters. Led by Restaurant Brands International Inc's acquisition of Popeyes Louisiana Kitchen Inc, the domestic market saw transaction values of $3.2 billion, down 43 percent year over year. Deal volumes, on the other hand, increased 25 percent from Q1 2016. Canadian investors were highly active in overseas markets between January and March, joining 28 deals valued at $26 billion. On the fundraising front, 10 Canadian private equity funds collected $2.5 billion this time around.
Deal-making activity in Canada’s buyout and related private equity market showed a marked decline in the first nine months of 2016, according to data released by Thomson Reuters. Disclosed values of transactions (announced and completed) totaled $14.3 billion as of September 30th, down 26 percent from the same time last year. Additionally, a total of 229 deals was done in the first nine months, the fewest in that period since 2010. Canadian oil and gas companies continue to drive 2016 activity, with 38 deals so far collecting $3.6 billion. Fundraising remained strong as of September 30th, with $42.9 billion in total new commitments.