Canada Scoops & Analysis

Performance Sports Group Ltd, the maker of Bauer ice hockey gear, said it has filed for bankruptcy protection in the United States and Canada to facilitate a restructuring and sale of almost all of its assets, Reuters reported. The company also said it has entered into an asset purchase agreement with an investor group led by its biggest shareholder, Sagard Capital, and Fairfax Financial for US$575 million, under which they will buy almost all of the company's assets. The investors will also serve as "stalking horse" bidders through the restructuring process.
TorQuest Partners, McKeil Marine, merger, M&A, private equity, Canada, Brent Belzberg, Eric Blake
TorQuest Partners has completed the final platform deal of its third mid-market fund, signalling the start of preparations to deploy the substantial $925 million raised by Fund IV. The Toronto private equity firm announced this week it invested in McKeil Marine, a marine transportation and project services provider. The deal comes on the heels of TorQuest’s acquisition of natural stone producer Polycor in September.
U.S. hedge fund D.E. Shaw and Co has made a non-binding proposal to replace SunEdison Inc as the operating sponsor of TerraForm Power Inc, an "yieldco" created by the bankrupt solar company, Reuters reported. Canada's Brookfield Asset Management and U.S. hedge fund Appaloosa Management have also shown interest in buying SunEdison's stake in TerraForm Power. Once the fastest-growing U.S. renewable energy company, SunEdison filed for Chapter 11 bankruptcy protection in April after a short-lived but aggressive binge of debt-fueled acquisitions proved unsustainable.
Dick's Sporting Goods Inc, teamed up with liquidators, won a bankruptcy auction on Friday for the U.S. business of Golfsmith International Holdings Inc with a bid of about US$70 million, sources told Reuters. Dick's plans to keep open at least 30 Golfsmith stores and wind down the rest with liquidators from Hilco Global and Tiger Capital Group, the sources said. Golfsmith, which recently filed for bankruptcy in the United States and Canada, has been backed by OMERS Private Equity since 2007.
Altice USA, the cable operator that Netherlands-based Altice NV put together by acquiring Cablevision and Suddenlink Communications, is drawing up plans for a potential initial public offering, sources told Reuters. The move would allow Altice's founder, French billionaire Patrick Drahi, to expand his budding U.S. cable empire by giving Altice USA public stock it can use to help finance more acquisitions. Taking Altice USA public would also allow investors BC Partners and Canada Pension Plan Investment Board to cash out in the future.
Dick's Sporting Goods Inc is preparing a bid for the U.S. business of bankrupt Golfsmith International Holdings Inc, challenging an offer by rival retailer Worldwide Golf Shops, sources told Reuters. The auction will the test the value of Golfsmith, which suffered because of competition from discount retailers, as well as golf's waning popularity among younger customers. Golfsmith, owned by OMERS Private Equity, filed for bankruptcy in the United States and Canada last month.
William Hill Plc and Canadian online gambling company Amaya Inc have abandoned merger talks, leaving the British bookmaker struggling to find a partner in a fast-consolidating industry, Reuters reported. Amaya, operator of the PokerStars website, and William Hill, one of the best known British gambling brands, said earlier this month that they were in talks about a merger of equals, but the deal was thrown into doubt days later when a leading investor in William Hill, Parvus Asset Management, said it would oppose the plan.
Ontario Teachers Pension Plan
Constellation Brands Inc said it will sell its Canadian wine business to the private equity group of Ontario Teachers' Pension Plan in a deal valued at about $1.03 billion (US$775.02 million), Reuters reported. The sale, which includes the Jackson-Triggs and Inniskillin wine brands, is expected to close by the end of the calendar year, the company said. Constellation will continue ownership of Black Velvet Whisky and the related production facility in Lethbridge, Alberta. Seven of the company's wine brands are among the top 20 in the Canadian market, Ontario Teachers' said.
Supervalu Inc said it would sell its Save-A-Lot business to Canadian private equity firm Onex Corp for US$1.37 billion, more than a year after making public plans to spin off the discount grocery chain, Reuters reported. Save-A-Lot has a network of about 1,370 company-owned and licensed stores across 37 states in the United States, the Caribbean and Central America. Onex made the best offer in an auction for Save-A-Lot, Reuters reported in September.
Toronto-based Balmoral Wood Litigation Finance has launched a US$150 million ($200 million) fund targeted to an emerging industry that specializes in bankrolling lawsuits, a person with knowledge of the matter told PE Hub Canada. Balmoral’s fund is earmarked for opportunities in the commercial litigation-finance industry. It is expected to operate like a fund-of-funds, committing capital to an array of established global firms. Litigation finance, or third-party funding of legal disputes in exchange for a portion of the payouts, has recently gained a foothold in North America and Europe.
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