CDPQ's $2 billion alliance with world's second-largest aircraft leasing firm also in deals roundup
Stikeman Elliott and Blakes are serving as legal counsel in the $402 million (US$300 million) merger of Exro Technologies Inc. and US-based SEA Electric Inc. Also in this week’s deals roundup is CDPQ’s approximately $2 billion (US$1.5 billion) joint venture with the world’s second-largest aircraft leasing company.
Exro merges with US-based SEA Electric in $402 million deal
Exro Technologies Inc., a Calgary-based electric vehicle technology firm, and SEA Electric Inc., a US-based e-mobility drivetrain maker, have agreed to merge in a deal valued at approximately $402 million (US$300 million).
The combined company will continue to operate under the name Exro Technologies Inc.
Stikeman Elliott LLP and Dorsey and Whitney LLP are serving as Canadian and US legal counsel, respectively, to Exro, while National Bank Financial Inc. is acting as the exclusive financial advisor.
Blake, Cassels, and Graydon LLP and Gibson, Dunn, and Crutcher LLP are serving as Canadian and US legal counsel, respectively, to SEA Electric, while Canaccord Genuity Corp. and Eight Capital are acting as financial advisors.
“We are pleased to announce the merger between Exro and SEA Electric, which unites our complementary EV technology platforms and unlocks substantial opportunities for growth and path to profitability,” said Exro CEO Sue Ozdemir. “Having come to know SEA and its management team from doing business with them over the past several years, I have great confidence that this acquisition will bolster our competitive positioning in the EV technology space while providing significant value potential for our shareholders.”
“Today marks the beginning of a significant new chapter in Exro's journey as we proactively and strategically lead the consolidation of the e-mobility sector,” said Exro Board Chairman Rod Copes. “The transaction secures first-mover advantage and the path to revenue is robust, backed by a strong leadership team committed to delivering to shareholders on the market opportunity.”
“With OEM contracts in-hand and industrialization underway, SEA Electric will benefit greatly from this business combination,” said SEA Electric Founder and CEO Tony Fairweather. “Exro provides the resources, capabilities and automotive systems that will ensure the successful execution of these important contracts, as well as offering complementary and differentiating technology in the form of its Coil Driver and Cell Driver.”
Upon deal completion, Sue Ozdemir will remain as Chief Executive Officer, Tony Fairweather will join Exro as the Chief Product Officer, and Darrell Bishop will become Chief Financial Officer.
The deal is expected to be completed by the end of the first quarter of 2024, subject to customary closing conditions.
CDPQ partners with Ireland’s SMBC Aviation Capital to create $2 billion financing platform
The Caisse de dépôt et placement du Québec (CDPQ) has partnered with Ireland-based SMBC Aviation Capital, the world’s second-largest aircraft leasing company, to create a $2 billion (US$1.5 billion) platform for financing and leasing airplanes. The platform will operate under the name Maple Aircraft Company Holdings Ltd.
The two companies plan to deploy US$500 million annually over the next three years. The CDPQ will provide most of the capital to help SMBC build up its fleet of the newest, more fuel-efficient aircraft models. SMBC will handle transaction sourcing and platform maintenance, and also invest in opportunities alongside Maple Aircraft Co.
“Building on CDPQ's experience in the aircraft financing industry, through this new platform, we will continue to provide flexible financing solutions for airlines to meet their future fleet requirements,” said CDPQ Executive Vice-President and Head of Fixed Income Marc Cormier. “We're delighted to partner with SMBC Aviation Capital, an industry leader with a successful track record, who has demonstrated their commitment to sustainable aviation, to find the best opportunities in the commercial aircraft industry and to achieve attractive risk-adjusted returns over the long term.”
“We are pleased to partner with CDPQ on this new platform to benefit our airline customers worldwide,” said SMBC CEO Peter Barrett. "CDPQ is an experienced, well respected, global investment group, which is aligned with our own views on capital allocation and a sustainable aviation industry. We look forward to working with our new partners over the coming years on this collaboration.”
C2C Metals acquires first US uranium project
C2C Metals Corp. has acquired the Melinda Uranium Project, C2C’s first United States uranium project.
Located in the San Rafeal Uranium District in Utah, the Melinda Project includes 240 claims covering eight square miles. The project was one of the later areas explored in the late 1970's prior to the slowdown in uranium exploration and production in the United States.
“Staking the Melinda Uranium Project, with hundreds of holes completed, provides C2C with a launching point into the United States uranium exploration sector,” said C2C Metals CEO Chris Huggins. “Our focus will be on conventional uranium assets, identified from historical data reports, in jurisdictions with established conventional uranium mining and progressive permitting regimes. We also continue our on-going evaluation of additional projects in the southwest United States with identified uranium mineralization.”
Landscape Effects Property Management merges with Case FMS
Landscape Effects Property Management (LFX), an Ontario-based provider of landscaping, snow and ice, and other exterior services to commercial customers across the country, has merged with Case Facilities Management Solutions (Case FMS), a US-based snow and landscaping services provider.
No financial terms were disclosed.
The combined company is backed by The Halifax Group, which previously invested in Case FMS in December 2021.
Case FMS founder and CEO Jason Case will remain the combined company's CEO and will hold a sizeable ownership position. LFX founder and CEO Paul St. Pierre has joined the board of directors and is now a shareholder in the combined company. The operational leadership teams for Case and LFX will still be in charge of managing daily operations in the United States and Canada, respectively.
Jason Case said, “We're excited to integrate Case FMS's proprietary technology with LFX's platform and service model in Canada. That combination promises substantial benefits for our existing and future customers on both sides of the border.”
G2S2 Capital increases investment in Knight Therapeutics
G2S2 Capital Inc. has acquired 147,000 common shares of Knight Therapeutics Inc., an Ontario-based specialty pharmaceutical company, through G2S2’s subsidiary Armco Alberta Inc., for $5.35 per share, in addition to the 12,118,600 common shares of Knight that G2S2 already owns before this transaction.
Through market transactions, private agreements, or other means, G2S2 may from time to time, contingent upon market and other factors, enhance or decrease its beneficial ownership, control, or direction over common shares of Knight.
US private equity firm Arsenal Capital Partners invests in Polycorp
Arsenal Capital Partners, a US private equity firm that specializes in investments in industrial and healthcare companies, has completed a majority investment in Polycorp Ltd., an Ontario-based manufacturer of engineered elastomer solutions.
No financial terms were disclosed.
William Blair & Company, L.L.C. acted as the exclusive financial advisor to Polycorp. Harris Williams served as a financial advisor to Arsenal.
“The transaction with Arsenal will accelerate Polycorp's strategic growth initiatives and enable additional investment in our manufacturing and R&D capabilities, human capital, and strategic acquisitions,” said Polycorp founder Peter Snucins. “I am especially excited to partner with Arsenal given the firm's established track record of building leading materials technology businesses in the elastomers sector.”
Arsenal Operating Partner Brett Schneider said, “The company's portfolio of capabilities is a natural fit for Arsenal, given our previous successful experiences investing in elastomeric and polymeric technologies, such as rubber and polyurethanes.”
Upon deal closing, Peter Snucins will remain as an investor and Board member of Polycorp.
