Osisko Gold Royalties Ltd said it would buy royalty company Virginia Mines Inc for about $479 million to create a company valued at $1.3 billion, Reuters reported. The Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ have agreed to contribute to the deal with private placements totaling $70 million. Under the agreement, the Caisse and Fonds will share in all future royalty or stream transactions entered into by Osisko and Virginia.
Canadian buyout firm Onex Corp is leading the bidding for Swiss packaging group SIG Combibloc Group, sources told Reuters. Onex is this week expected to pay roughly 3.6 billion euros (US$4.5 billion) for the world's second largest maker of drink cartons. The Toronto-based investor had been neck-on-neck with Swiss-based rival Partners Group, after BC Partners dropped out of the running, the sources said.
Two months ago, the Business Development Bank of Canada (BDC) created BDC Capital, a new division that brings its private capital teams together under a single roof. As part of this initiative, BDC’s long-standing subordinate financing group was renamed Growth and Transition Capital (GTC). BDC's Robert Duffy told peHUB Canada that GTC’s investment activity has grown sharply of late, with its portfolio value at cost rising 49 percent since 2011 to more than $600 million today.
Brazil, China and India still offer long-term investment value but a lot of global assets are fully priced and competing with huge sovereign wealth funds is getting harder, CPPIB chief executive Mark Wiseman told Reuters. Wiseman said market conditions remain difficult because assets are fairly priced, which means deal activity will be below average and CPPIB will have to "pick its spots" to find good investments.
Pinnacle Foods Inc said it would buy Canadian plant-based protein food maker Garden Protein International Inc for $175 million from founder Yves Potvin and U.S. private equity firm TSG Consumer Partners LLC, Reuters reported. Vancouver-based Garden sells its products under the 'Gardein' brand, founded by Potvin in 2009. The brand is expected to generate net sales of about $65 million in 2014, Pinnacle said. The deal, including a manufacturing plant and nearly 250 employees, is expected to close this week.
KIK Custom Products Inc, one of North America's largest manufacturers of household cleaning and personal care products, is exploring a sale that could value it at more than US$1.5 billion including debt, sources told Reuters. The Concord, Ontario, company, owned by U.S. private equity firm CI Capital Partners LLC since 2007, is working with Morgan Stanley on a sale process that is expected to kick off early next year.
Dutch electronics group Philips has attracted bids from several private equity groups for the majority of its lighting components business, up for sale as it focuses on higher-margin activities, several sources told Reuters. Buyout groups including Bain, CVC, CD&R, KKR and Canada's Onex Corp handed in offers earlier this week valuing the business at between 2.5 billion euros (US$3.1 billion) and 3 billion, the sources said.
U.S. telecommunications provider ShoreTel Inc rejected Canadian peer Mitel Networks Corp's higher bid, saying it "significantly undervalued" the company, Reuters reported. Mitel on Monday raised its offer to $8.50 per share in cash and stock, from $8.10 per share in cash. The revised offer valued ShoreTel at about $574 million.
Kevin McDowell has left Alberta Investment Management Corp (AIMCo) after nearly 14 years with the institutional investor. McDowell joined the Alberta Teachers’ Retirement Fund Board’s private equity program as a senior principal in June.
Extendicare has agreed to sell substantially all of its U.S. business operations to an investor group led by U.S. private equity firm Formation Capital and Safanad for US$870 million. The deal is expected to be closed in early 2015. Based in Markham, Ontario, Extendicare is a North American provider of post-acute and long-term senior care services.