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Cross Border Activity - June 2007

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U.S. PE financings for Canadian companies were light again this month.  Most U.S. activity consisted of the cross-border M&A deals that have typified the private equity landscape in the last few months.  

 

  • Vancouver-based Guardian Mobile Monitoring Systems Inc. announced its first closing of its Series B round of financing with over US$3 million. BC Advantage Funds led the deal, and was joined by Canadian and American angels.
     
  • Lehman Brothers Private Equity acquired a significant equity stake in SkyPower Corp., a Toronto-based renewable energy company with a portfolio of wind and solar projects across Canada. The investment includes an up-front acquisition payment, commitments to future project financing as well as other investment opportunities in the renewable energy sector.  Details of the transaction were not disclosed.
     
  • Aquinox Pharmaceuticals Inc., a Vancouver-based privately-held pharmaceutical company, raised US$14.5 million in Series A venture capital financing.  Ventures West Capital Ltd. led the financing, alongside new investors Johnson & Johnson Development Corporation (JJDC) and Baker Brothers Investments, and existing investor BC Advantage Funds. 

 

Cross-border M&A

 

  • IBM agreed to buy Watchfire Corp., a privately-held security company based in Massachussetts with operations in Ottawa, for an undisclosed sum.  The strategic purchase will deepen IBM’s existing security and compliance product and service offerings.  The acquisition is expected to close in the third quarter of 2007.  Details of the transaction were not disclosed.
          
  • Mason Wells acquired Oliver Products Co., a Michigan-based provider of packaging solutions to the global medical and prepared foods industries for an undisclosed amount.  M&I Bank and US Bank provided senior financing for the transaction, while Canadian BMO Private Equity provided mezzanine and co-investment financing.  Details were not disclosed.
          
  • Toronto-based private equity group OnCap completed its acquisition of pizza chain operation CiCi Enterprises from Levine Leichtman Capital Partners. OnCap provided $50 million in equity for the US$250 million deal.
          
  • GM’s Allison Transmission has been sold to Onex Corp. and the Carlyle Group for a total US$5.6 billion.  A combined US$1.5 billion equity investment will be contributed by both companies. The deal is only the latest in a string of purchases being made by Onex, the Toronto-based buyout group, and is expected to close in the third quarter.  
          
  • Baltimore-based Laureate Education Inc. has accepted an increased buyout offer that values the company at US$3.82 billion, a share price increase of $1.50. The buying consortium includes Laureate chairman and CHO Douglas Becker, Kohlberg Kravis Roberts & Co., Citigroup Private Equity; S.A.C. Capital Management, SPG Partners, Bregal Investments, Caisse de dépôt et placement du Québec, Sterling Capital, Makena Capital, Torreal SA and Southern Cross Capital. 
     
  • Comverge Inc. agreed to acquire Enerwise Global Technologies, a Pennsylvania-based provider of managed energy services to commercial and industrial customers.  The deal is valued at US$75.7 million, including $25.15 million in cash, $17 million in subordinated convertible notes and around $33.6 million worth of Comverge common stock. Enerwise had raised around $20 million in VC funding since 2001, from firms which included Canadian VC Hydro-Quebec CapiTech.