Torkin Manes advising Ontario's StenTech in its sale to Align Capital Partners among this week’s deals
Stikeman Elliott acted as lead counsel to Montreal tech firm Alithya Group in the $59 million acquisition of American software development and consulting company Datum Consulting Group while Torkin Manes and Cailfee, Halter & Griswold served, respectively, as advisors in the sale of Ontario’s StenTech to Align Capital Partners.
Montreal tech firm Alithya to acquire U.S. software company for $59 million
Montreal-based digital strategy and technology firm Alithya signed an agreement to acquire American software development and consulting company Datum Consulting Group for approximately $59 million.
Datum serves clients from clients from the United States, Europe, India and Australia.
Stikeman Elliott acted as lead counsel to Alithya Group Inc. with a team that included David Massé, Antoine Champagne, Stefan Vrinceanu, Audrey Foisy, Alexandre Di Pisa, Stéphanie Beaudoin, Anna Arapovic, (M&A and Securities), Farlene Barthelemy, Maria Sollazzo (Paralegals).
Alithya’s sole financial advisor was Scotiabank while Consilium Partners served as financial advisor for Datum Consulting Group, LLC.
"In Datum, we found a culture and vision in strong alignment with Alithya's values and corporate objectives along with a global team of experts who service the world's leading insurance companies,” Alithya President and CEO Paul Raymond said. “Datum's highly skilled team as well as its suite of 14 proprietary products and cloud-based software as a service (SaaS) offering will help us add scale in these areas as we continue our growth and transformation initiatives. The Company serves the foremost American and European insurers, including 6 of US' top 10 health insurers. Datum has invested to productize institutional knowledge into software products which can scale rapidly in other industries as well."
Datum President and Founder Amar Bukkasagaram said, "I am thrilled for Datum to be joining Alithya, a growing world-class organization. Our new business unit will contribute to the strategic global expansion by Alithya currently under way, and the synergies will allow our clients to benefit from years of R&D and co-development with insurers of our suite of 14 proprietary products, now implemented throughout our customer base.”
The transaction closed on July 1, 2022.
Align Capital Partners to acquire Ontario’s StenTech
Align Capital Partners (ACP) announced the acquisition of Ontario-based StenTech, provider of surface mount technology (SMT) stencils, pallets, tooling, and related components to more than 2,000 customers across North America.
Torkin Manes acted as legal advisor to StenTech. Calfee, Halter & Griswold served as legal counsel to ACP.
“We were looking for an investment partner who understood our market and was committed to maintaining the high levels of customer service we are known for within the SMT community,” said StenTech founder Sibthain “Sip” Akbar. “Align Capital Partners’ relevant specialty manufacturing experience, track record of partnering with management teams through successful leadership transitions and overall growth resources, fit our needs perfectly.”
As part of the transaction, Akbar will step down as President of StenTech and will be succeeded by current Vice President and long-time industry leader Brent Nolan.
“ACP is thrilled to partner with Brent and the StenTech team to build upon the Company’s leadership position,” said ACP Managing Partner Chris Jones. “As a growth investor, we’re excited about the opportunity to invest in StenTech’s commercial and operational capabilities in support of the Company’s already strong position as a supply chain partner of choice to Tier 1 contract manufacturers and OEMs across North America.”
WSP Global to buy Built Environment Consulting from U.K.-based John Wood for $2.4 billion
John Wood Group, a U.K.-based energy services company, agreed to sell its Built Environment consulting business to WSP Global for gross proceeds of approximately $2.4 billion.
Cash proceeds will be allocated to reduce John Wood Group’s net debt.
John Wood CEO Robin Watson said, "We are very pleased to have agreed this sale with WSP. This transaction will deliver significant value for our shareholders and marks a new chapter for Wood. It enables us to move onto our next strategic phase with the financial flexibility to accelerate our strategy to capture the growth opportunities ahead across both energy security and sustainability.”
WSP President and CEO Alexandre L'Heureux said, "The addition of the Built Environment Consulting business will allow us to expand our Earth and Environment leadership across our key markets and geographies. We share a common purpose of making the world a better place and our united forces will only further our expertise to create a more sustainable and resilient world".
The transaction is expected to close in the second half of 2022.
Kaycan to sell to French construction materials company for $1.2 billion
Kaycan, a Canadian family-owned manufacturer and distributor of exterior building materials in Canada and in the U.S., agreed to sell to French construction materials company Saint-Gobain for approximately $1.2 billion in cash.
With nine out of 12 manufacturing plants located in Canada, Kaycan’s Canadian assets account for more than half of the company’s revenue, with the remaining revenue generated in the U.S.
“The acquisition of Kaycan is an excellent step for Saint-Gobain and I am very enthusiastic to warmly welcome the Kaycan teams into the Group.” Saint-Gobain CEO Benoit Bazin said. “Not only does this acquisition allow us to strengthen our presence in siding both in Canada and in the United States, but it also allows us to broaden our offering into the exciting growth areas of aluminum and engineered wood siding, largely made with recycled materials and thus helping to drive the circular economy ecosystem in construction. It is perfectly aligned with the “Grow & Impact” strategy announced at our Capital Markets Day and reinforces our position in North America and as the worldwide leader in light and sustainable construction.”
“Ever since my family founded Kaycan in 1974, our team has been laser-focused on providing the best customer service possible throughout Canada and the United States, all while pushing the boundaries of imagination and innovation to expand our product portfolio over the past decades,” Kaycan President Lionel Dubrofsky said. “Now we have the opportunity to join Saint-Gobain, a renowned leader in light and sustainable construction. We are filled with gratitude for our team’s hard work over the past 48 years, and we’re thrilled to see what comes next for our combined companies.”
The transaction is expected to close by the end of 2022.
