Private equity and pension funds may provide the next wave of financing to the mining sector through metal streaming deals as dedicated funding sources struggle to raise their own cash, Reuters reported. Potential new market entrants include Canada Pension Plan Investment Board, while the already active Caisse de dépôt et placement du Québec is among those expected to increase their exposure.
TriWest Capital Partners recently completed the debut investments of its fifth private equity fund, closed at $500 million earlier this year. They included a small Canadian service company, Prostar Energy Holdings LP, which is looking to fill a very big need: helping hard-pressed energy producers reduce costs through innovation.
TorQuest Partners scored a 5x return on total invested capital in the sale of its interest in Array Marketing to Carlyle Group, representing a 61 percent internal rate of return, TorQuest said. Carlyle earlier this week took a majority stake for an undisclosed amount in Array, a Canadian provider of in-store merchandising systems to high-end cosmetic brands.
Expectations of a takeover frenzy in global mining have been dashed by falling commodity prices, leaving the field open for private equity funds looking to deploy billions of dollars, Reuters reported. Funds are tight-lipped about their investment plans, but typically operate in mature markets like Australia and Canada.
Twinkies maker Hostess Brands LLC is in talks to acquire Give and Go Prepared Foods Corp, a Canadian maker of thaw-and-serve sweet baked goods such as Two-Bite Brownies, sources told Reuters. The Toronto based-company's owner, OMERS Private Equity, hopes a deal could value Give and Go at as much as US$800 million, one of the sources said.
The Ontario government has extended its commitment to nuclear energy in a supply deal with Bruce Power under which the nuclear generator will spend $13 billion to refurbish six reactors, Reuters reported. Bruce Power's majority owners, the Ontario Municipal Employees Retirement System Fund and TransCanada Corp will also invest in the refurbishment projects.
The Delaware Supreme Court has upheld a US$76 million damage award against RBC Capital Markets for its role in the 2011 sale of ambulance company Rural/Metro but described its closely watched decision as a narrow one, Reuters reported. The court found RBC was liable for convincing the company's board to rush into a US$438 million buyout led by private equity firm Warburg Pincus.
Canadian Oil Sands Ltd, which is trying to attract a white knight following a hostile bid from Suncor Energy Inc, needs more time to review options as more than two dozen parties have expressed an interest. The potential bidders include Blackstone Group, KKR & Co LP, Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan, sources told Reuters.
A debt financing of about US$3 billion backing CVC Capital Partners and Canada Pension Plan Investment Board's US$4.6 billion buy of Petco is joining a US$14 billion pipeline of U.S. leveraged buyout loans that are waiting to be sold after another deal was pulled last week, Reuters reported.
U.S. private equity firm CVC Capital Partners and Canada Pension Plan Investment Board are nearing a deal to acquire Petco Holdings Inc, valuing it at around US$4.7 billion, including debt, sources told Reuters. The consortium outbid other buyout firms in an auction for Petco and is now finalizing terms with the U.S. pet retailer's owners, TPG Capital and Leonard Green & Partners.