Dentons assists in two M&A deals in energy, IT sectors

Fasken, Blakes, Miller Thomson also legal counsel this week

Dentons assists in two M&A deals in energy, IT sectors

Dentons Canada LLP advised two M&A deals this week, including Enbridge’s $400 million acquisition of the largest and only underground natural gas storage facility in British Columbia and the $100 million merger of two leading IT service providers. Also included in this deals roundup are Fasken, Blakes, and Miller Thomson as legal counsel.

Enbridge to acquire Aitken Creek Storage for $400 million

Enbridge Inc. and FortisBC Holdings Inc. have entered into a legally binding agreement for Enbridge Inc. to purchase FortisBC Midstream Inc. for $400 million, subject to customary closing adjustments. FortisBC Midstream Inc. owns a 93.8 percent interest in the Aitken Creek Gas Storage facility and a 100 percent interest in the Aitken Creek North Gas Storage facility (together, Aitken Creek Storage).

Dentons Canada LLP is serving as exclusive legal counsel and BMO Capital Markets as exclusive financial advisor to Enbridge.

The largest and only underground natural gas storage facility in British Columbia, Aitken Creek Storage has a working gas capacity of 77 billion cubic feet and is located 120 kilometers northeast of Fort St. John.

Aitken Creek Storage is the only storage facility that connects to all three of Western Canada's main long-haul natural gas transportation lines, including Enbridge's Westcoast Pipeline and Alliance Pipeline.

"Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports," said Cynthia Hansen, Enbridge Executive Vice President and President, Gas Transmission and Midstream. "Natural gas plays an increasingly important role in the energy transition, and this investment further aligns with Enbridge's focus on providing the affordable, sustainable and reliable energy that is needed now and into the future."

The deal is expected to be completed by the end of 2023, subject to customary regulatory approvals and closing conditions.

MSP Corp, Groupe Access merge in $100 million deal

MSP Corp, a well-known Canadian managed service provider organization, was successfully acquired by Alfar Capital and Walter Capital Partners in a deal valued over $100M. Following the acquisition, Groupe Access, a top managed service provider of technology and cybersecurity solutions, will merge with MSP Corp. The united company, known as MSP Corp, establishes a national Canadian managed services platform with more than 400 IT experts available to provide cybersecurity, cloud computing, and digital transformation solutions.

Dentons Canada LLP acted as legal counsel, and CIBC Capital Markets and Focus Investment Banking as financial advisors, to MSP Corp.

Fasken Martineau DuMoulin LLP served as legal counsel for Alfar Capital and Walter Capital Partners, while Desjardins provided financing for the transaction.

Blakes, Cassels & Graydon LLP served as legal counsel to BDC Growth Equity Partners, a minority shareholder in MSP Corp.

MSP Corp will serve as the consolidated operating company formed through the integration of 15 companies, namely, Groupe Access, MyCloud, HLB System Solutions Inc., MBC Computer Systems Ltd., Netex Managed Services Inc., Onserve Inc., Stronghold Services Corporation, Tenet Computer Group Inc., Broadview Networks Inc., Virtual Data Corp., Catalyst Network Solutions Inc., Microtek Corporation, RJ Systems Ltd., Softlanding Solutions Inc., and Tangerine Technology.

The new MSP Corp will be led by former Groupe Access CEO, Habib Malik. Ravi Ramharak, CEO & Co-Founder of MSP Corp, will remain with the company as Chief Mergers & Acquisitions Officer.

“The merger of Groupe Access and MSP Corp is a significant milestone in the technology industry,” said Habib Malik. “This union will enable us to provide unparalleled value to our customers and drive innovation in the digital landscape. Our combined expertise and resources, along with the support of our new MSP group of companies, will allow us to deliver cutting-edge solutions and address the most pressing technology challenges businesses face today.”

Ravi Ramharak said, “After helping to build MSP Corp for over 18 years, I am amazed at the evolution and depth of which all our companies have performed. Under the new stewardship of Habib, I can only imagine the heights our teams will reach in this new partnership that benefits all stakeholders.”

MSP Corp will serve as the consolidated operating company formed through the integration of an impressive group of 15 companies:

Arbec Forest Products acquires Forex OSB mill

Arbec Forest Products Inc., a significant OSB panel manufacturer in Quebec, acquired Forex OSB mill, located in Amos. Arbec is strengthening its position in the Canadian forest sector as a result, and it now produces around 5 percent of the OSB produced in North America.

Miller Thomson LLP served as legal counsel and KPMG Corporate Finance Inc. as financial advisor to Arbec Forest Products in connection with the transaction.

Arbec President Joey Saputo said, “We are very proud to welcome the employees of the Forex plant in Amos to the great Arbec family. Forex is an innovative and efficient family business that, like us, pays special attention to raw materials and the environment. We are convinced that this acquisition will reinforce our commitment to excellence in manufacturing, innovation and sustainable development.”

Arbec CPA, Vice President Finance and Business Development Serge Mercier said, “The Amos Forex mill, an important part of the Abitibi regional forest ecosystem, fits perfectly into our development plan based on acquisitions and regional and national partnerships. We want to support local teams in continuing to innovate and optimize the mill while securing the direct and indirect jobs it generates. This acquisition will also allow us to increase the products offered to our customers.”

Forex Inc. Executive Vice President Yolaine Rousseau said, “We are pleased that Arbec will continue to operate the Amos plant and maintain jobs and economic benefits in the region. I would like to thank the employees, customers and suppliers who have supported the Cossette family over the past 8 years in this project. Their commitment and dedication have been invaluable to the success of the company, and we are confident that this transition will also be successful.”

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