The world's private equity funds, with a cash pile of around US$1 trillion, are stepping up their interest in the oil and gas industry, with almost a half expecting to buy assets in the sector over the next year, Reuters reported, citing the findings of a new survey. Funds' appetite for investments in the sector fell sharply after the start of the oil price route two years ago. But recent signs of a rebound, coupled with abundant assets around the world, are turning the tide, advisory firm EY said in a survey of 100 private equity firms.
German forklift truck and robotics maker Kion has agreed to buy Dematic from AEA Investors and Ontario Teachers’ Pension Plan to expand into the market for automated warehouses and supply chains that have ballooned with the growth of e-commerce, Reuters reported. Excluding certain liabilities, the purchase price will be about US$2.1 billion. The proposed takeover, which values Atlanta, Georgia-based Dematic at US$3.25 billion, will allow Kion to combine its industrial forklift trucks systems with Dematic's fully automated warehouses to become a one-stop supplier for retailers and logistics companies, Kion said.
Essar Steel Algoma Inc said it had agreed to sell its assets to a consortium formed by New York-based private equity firm KPS Capital Partners and its lenders, Reuters reported. The Canadian steel company, which had been purchased nearly a decade ago by Indian energy and resources conglomerate Essar Group, had put itself up for sale while operating under creditor protection. The company manufactures steel products and sells them to the automotive, light manufacturing, construction, shipbuilding and energy industries.
British private equity firm Apax Partners LLP is exploring a sale of Trader Corp which could value the Canadian provider of advertising for automotive dealers at more than US$1.5 billion, including debt, sources told Reuters. Apax is working with investment banks that include Goldman Sachs Group Inc on a sale process for Trader, the sources said. Trader will pursue an initial public offering if the acquisition offers it receives do not meet Apax's valuation expectations.
Onex Corp said it is preparing for the launch of its fourth mid-market private equity fund now that ONCAP III is approaching full investment. In its report of first-quarter 2016 results, Toronto-based Onex said it is “now in a position” to raise ONCAP IV as its predecessor was more than 75 percent invested as of March 31st. ONCAP III collected $800 million in a final close in September 2011.
Canada's Dream Industrial Real Estate Investment Trust has held talks with potential suitors to explore the prospect of selling itself, sources told Reuters. Possible buyers could include asset managers, pension funds, private equity firms, insurers and real estate companies. Players who have shown interest in industrial properties include entities backed by Brookfield Asset Management, Canada Pension Plan Investment Board and Alberta Investment Management Corp. Pure Industrial Real Estate Trust could also be interested, one of the sources said.
PSP Investments, one of Canada's biggest pension funds, said it had acquired a significant minority stake in French company Allflex Group, the world's biggest maker of electronic tags for animals, from private equity firm BC Partners, Reuters reported. The purchase was overseen by PSP's new team in London, led by Simon Marc, and is likely to be followed by further deals in Europe as PSP looks to increase its presence in Europe's private equity market after having opened an office in London last year.
Two of Canada's largest pension funds have bought a stake in one of Mexico's biggest toll road concessions from an infrastructure company controlled by billionaire Carlos Slim, Reuters reported. Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan have invested $1.35 billion for a 49 percent stake in the Arco Norte toll road, which connects the states of Mexico, Puebla, Hidalgo and Queretaro and is a link to major trade corridors. "Arco Norte represents our first infrastructure investment in Mexico and enables us to invest in an established, modern toll road of significant size," Cressida Hogg, CPPIB's global infrastructure head, said.
Swiss commodity trader and miner Glencore has agreed to sell a 9.99 percent stake in its agricultural business to British Columbia Investment Management Corp (bcIMC) for US$624.9 million in cash, as it continues a push to sell up to US$5 billion worth of assets this year to help cut debt, Reuters reported. The deal follows the company's sale of a 40 percent stake in Glencore Agri to Canada Pension Plan Investment Board for US$2.5 billion in April, and will leave Glencore with just over a 50 percent stake in the business, with existing management to stay.
Polycom Inc said it received a revised offer from an unidentified private equity firm, the third time the bidder has revised its offer since the U.S. video conferencing equipment maker agreed to be acquired by Canada's Mitel Networks Corp, Reuters reported. The revised offer values Polycom at US$1.66 billion, based on its outstanding shares as of April 21. Mitel's cash-and-stock deal was valued at US$1.96 billion. San Jose, California-based Polycom said in a filing that the new offer comprised US$650 million of equity financing and US$950 million of debt financing.