Deals this week also include Brookfield's $6.5-billion U.K. addition to home-improvement portfolio
Torys LLP and Watson, Farley and Williams LLP acted as legal advisers to Tenaz Energy Corp. in its recently announced $34.3-million acquisition of SDX Energy PLC, a UK-based MENA-focused exploration and production company that was advised by Blake, Cassels & Graydon LLP and Bryan Cave Leighton Paisner LLP (BCLP) in the transaction. Other cross-border deals this week include Brookfield’s $6.5 billion acquisition of U.K.’s HomeServe.
Tenaz Energy to acquire UK-based SDX Energy for $34.3 million
On May 25, 2022, Tenaz Energy Corp. announced its agreement to acquire UK-based SDX Energy PLC, a MENA-focused exploration and production company, for $34.3 million. The acquisition is in line with Tenaz’s focus on sustainable development of international oil and gas assets, including regions such as Egypt and Morocco, where SDX has assets.
Torys LLP served as Canadian and US counsel to Tenaz, with Watson, Farley and Williams LLP as UK legal counsel and finnCap Ltd. as sole financial advisor.
Blake, Cassels & Graydon LLP acted as North American advisor to SDX, with Bryan Cave Leighton Paisner LLP (BCLP) as UK legal counsel and N.M. Rothschild, Sons and Co. as financial advisor.
"This Transaction is an important step in the execution of our strategy for international growth. The Egyptian and Moroccan operations are within our primary regions for long-term focus, and we believe that these are high quality assets with numerous desirable organic investment opportunities,” said Tenaz CEO and Director Anthony Marino. “In addition, we believe that these areas offer opportunities for continued consolidation and resulting growth. Finally, we expect that the combination of our technical teams will enhance the operating, HSE and sustainability performance of these assets and future assets that we may acquire as we pursue our corporate strategy."
The shareholder meeting for transaction approval is expected to be in late June or early July for Tenaz and in July for SDX.
Brookfield adds UK-based HomeServe to cross-border portfolio for $6.5 billion
Brookfield Asset Management agreed to acquire British firm HomeServe for $6.5 billion, in a move to add a major residential-service company to its home-improvement portfolio, through Hestia Bidco Ltd., an indirect subsidiary of Brookfield Infrastructure Partners.
Operating in North America, Europe and Asia, HomeServe provides a variety of heating, cooling, electrical, and plumbing services.
Brookfield Infrastructure managing partner Sikander Rashid said, “We look forward to supporting HomeServe’s continued growth globally as critical residential infrastructure is upgraded in the coming years to drive decarbonization and improve energy efficiency.”
The deal is expected to close in the fourth quarter of 2022.
French firm Bonduelle in talks with FTQ, CDPQ to sell 65 percent of assets for $850 million
On May 24, French food group Bonduelle announced its exclusive negotiations with investors Fonds de solidarité FTQ and Caisse de dépôt et placement du Québec (CDPQ) to sell Bonduelle Americas Long Life (BALL) for $850 million.
BALL works with well-known brands such as Arctic Gardens and Del Monte in the processing and marketing of canned and frozen vegetables in American and Canadian retail supermarket and food service industries.
Bonduelle Group CEO Guillaume Debrosse said, “The transaction with the Fonds de solidarité FTQ and CDPQ would allow BALL to pursue its development in a North American market that is constantly consolidating and to finance its growth and profitability investments, without any new allocation of capital by the Bonduelle Group. As a minority shareholder, Bonduelle will ultimately benefit from 35% of the value created by this business.”
“The Fonds de solidarité FTQ is proud to build this partnership to accomplish this structuring transaction for the Quebec agri-food sector,” said Dany Pelletier, Executive Vice-President, Investments at the Fonds de solidarité FTQ. “The transaction involving Bonduelle Americas Long Life, the Fonds and its partners will become one of the most significant in the Quebec food industry. It will allow the company to continue its North American expansion, while maintaining a crucial headquarters here. The Fonds participation in this transaction is in addition to its historical investments of nearly CDN$1.3 billion in the agri-food industry.”
“CDPQ is especially proud to become a shareholder of one of the principal players in the North American food industry whose headquarters will be based here, in Brossard,” said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. “Alongside our partners, we look forward to pursuing Bonduelle Americas Long Life’s ambitions expansion plan to consolidate its position as a Canadian leader and further develop the US market.”
Peloton Capital Partners joins US and UK investors in $154-million funding of Friday Health Plans
Friday Health Plans Management Services Company, Inc., a US-based health insurance holding company, signed an agreement for $154-million in funding led by British investor Leadenhall Capital Partners and joined by Vestar Capital Partners, Peloton Capital Partners, and other partners.
The investment will be used to fund Friday’s expansion project into new Affordable Care Act marketplaces.
"More people are finding value in our simple, practical health plans designed for people who don't get insurance through their employer," said Friday Health Plans CEO Sal Gentile. "We are built specifically to give them great health benefits and superior service – all at an affordable price. And we're able to do this because we focus solely on serving this growing consumer segment."
Converge Technology Solutions to buy US-based PC Specialists for $95 million
Converge Technology Solutions, a based software-enabled IT and cloud solutions provider, agreed to buy US-based PC Specialists, provider of optimized performance solutions and critical business support, for $95 million.
Operating under the name Technology Integration Group (TIG), PC Specialists has 20 offices across North America.
“TIG is elated to be joining forces with Converge,” said Tom Janecek, CEO and CFO of Technology Integration Group. “We are extremely proud of our 40+ year history and have no doubt that our track record of success as a multi-national service and solutions integrator will continue as part of Converge. We are excited for the strategic direction and vision of the Company and look forward to a bright future for our employees, clients, and business partners.”
“Converge is excited to continue our strategy of growth and global expansion through the announced addition of Technology Integration Group to our portfolio of companies,” said Shaun Maine, CEO of Converge. “TIG brings strong industry expertise across State, Local, and Education that we can leverage across North America and gives us additional presence in Canada, adding to our strength of offerings with the Canadian government. The combined strength of Converge and TIG’s ability to serve our clients in markets around the world will present an exciting opportunity for us to continue reaching our clients and solving their solution needs wherever they may be.”
Karora Resources to acquire Lakewood Mill gold processing plant for $73 million
On May 24, Karora Resources, an Ontario-based multi-asset mineral resource company, announced an agreement to acquire the operating and fully permitted Lakewood Mill gold processing plant located near Kalgoorlie, Western Australia, for $73 million.
Karora Resources Chairman and CEO Paul Andre Huet said, “Closing the acquisition of the Lakewood Mill would be a transformational step forward for Karora, similar to the Higginsville mill acquisition in June 2019. Not only is the Lakewood mill closer to Beta Hunt than Higginsville, but the acquisition would provide several immediate strategic and operating benefits to Karora.”
