Brookfield's Swedish deal also in deals roundup
Stikeman Elliott and Borden Ladner Gervais are serving as legal counsel in Desjardins Group’s $750-million acquisition of three Guardian Capital Group businesses. Also in this deals roundup is Brookfield’s $1.21-billion acquisition of interest in a Swedish developer.
Desjardins to acquire three Guardian businesses for $750 million
Quebec-based Desjardins Group and Ontario-based Guardian Capital Group entered into definitive agreements for Desjardins to acquire Guardian's life insurance, mutual fund, and investment distribution networks in a deal valued at $750 million.
The three networks included in the deal are IDC Worldsource Insurance Network Inc., one of Canada’s largest life-insurance managing general agencies, mutual fund dealer Worldsource Financial Management Inc. (WFM), and full-service investment dealer Worldsource Securities Inc. (WSI).
IDC, WFM and WSI cater to more than 5,000 independent advisors in the Canadian financial sector.
Stikeman Elliott LLP is serving as legal counsel and Desjardins Capital Markets as financial advisor to Desjardins.
Borden Ladner Gervais LLP is serving as legal counsel and BMO Capital Markets as financial advisor to Guardian.
“This acquisition strengthens Desjardins in the important life insurance and wealth management sectors across Canada,” said Guy Cormier, Desjardins Group president and CEO. “On the insurance side, it extends our market reach and positions us as a leader in life insurance independent distribution in Canada. On the financial advisory side, the mutual fund and securities dealers will enhance and strengthen our distribution of retail investment products. With this added bench strength, Desjardins will be able to serve more Canadians and achieve critical mass to generate the financial flexibility to innovate and invest to better meet the needs of our members, clients and advisors.”
Guardian president and CEO George Mavroudis said, “This transaction unlocks meaningful value for Guardian's shareholders, while simultaneously streamlining its operations to focus on its core investment management business. We look forward to continuing to build best in class investment solutions for investors and growing our diverse investment management business across all client segments, including institutional, retail, and private wealth.”
The deal is anticipated to be completed in the first quarter of 2023 and is subject to customary closing conditions, including regulatory approvals.
Brookfield to buy 49-percent stake in SBB for $1.21 billion
Brookfield Super-Core Infrastructure Partners agreed to acquire a 49-percent interest in EduCo, the social infrastructure portfolio for public education of Swedish developer SBB, in a deal valued at $1.21 billion (SEK 9.2 billion).
Linklaters LLP is serving as legal counsel to Brookfield.
Advokatfirman Vinge is serving as legal counsel and J.P. Morgan Securities PLC as sole financial advisor to SBB.
EduCo plans to invest in 585 social infrastructure assets within the public-backed education sector in Sweden, Denmark, Norway and Finland.
EduCo operations will be led by Jenny Asmundsson, SBB Group’s executive management team member.
Eduardo Salgado, a Managing Partner in Brookfield’s Infrastructure Group and Head of Brookfield Super-Core Infrastructure Partners, said, “By partnering with SBB, we achieve a best-in-class operational set-up with an organisation that has a strong local market presence, deep expertise and an exceptional track record in executing social infrastructure transactions in the Nordics. This is a unique opportunity to invest in the leading social infrastructure educational portfolio in the Nordic region.”
SBB CEO and founder Ilija Batljan said, “We are delighted to join forces with Brookfield, a world-class, highly reputable infrastructure asset investor. Establishing EduCo will make us even better placed to continue delivering important infrastructure to the Nordic welfare states. There will be an increasing need for schools, preschools and university buildings in the Nordics, a market in which we already have a strong foothold.”
The deal is expected to be completed in two steps: the first closing on December 30, 2022 or latest in the beginning of 2023 and the second closing in the first or second quarter of 2023.
Novacap to acquire US-based All West Communications
Novacap agreed to acquire All West Communications, a provider of internet, TV streaming and phone services to residential, commercial and carrier customers in Utah and Wyoming.
Paul Hastings LLP is serving as legal counsel and Bank Street Group LLC as the exclusive financial advisor to Novacap.
Blackburn & Stoll, LC is serving as legal counsel and Stifel as exclusive financial advisor to All West.
“The continued transformation of All West into a leading broadband provider will benefit from the Novacap digital infrastructure playbook, and the prior successes of Fibrenoire, Oxford, FirstLight, Horizon and Stratus Networks,” said Novacap senior partner Ted Mocarski. “This partnership will enable All West to continue its mission of providing fast, reliable, fiber-based local Internet services to its customers, including those located in underserved communities. We look forward to accelerating the momentum of All West by expanding its footprint, enhancing its capabilities, and ensuring rapid network deployment.”
All West president Matt Weller said, “The demand for faster speeds, a wider range of services and pricing options is growing every day. This is an exciting partnership that will help us pursue significant growth opportunities. We are very excited about entering several new markets in the near future with the collaboration of Novacap and its team.”
The deal is expected to close in the first half of 2023, subject to customary closing conditions.
