A Bombardier CS300 airplane is seen on a static display two days before the opening of the 51st Paris Air Show at Le Bourget airport near Paris in this June 13, 2015 file photo.PASCAL ROSSIGNOL
DEAL OF THE DAY
Quebec government invests $1-billion into Bombardier
Bombardier Inc. is getting a $1-billion bailout that will see the Quebec government invest in the company's C Series jet program in exchange for a 49.5-per-cent equity stake in the project. Bombardier is also issuing the province class B warrants that will give it an 8-per-cent stake in the company. The move did not inspire confidence from investors. The stock closed the Thursday session down 17 per cent. Story
MERGERS AND ACQUISITIONS
GFL Environmental buying TransForce division for $800-million
GFL Environmental Inc. announced it is buying TransForce Inc.'s Matrec solid waste division for $800-million. The acquisition will expand Toronto-based GFL's footprint considerably, beefing up its presence in eastern Ontario and Quebec.
GFL expects the Matrec division to generate $82-million of EBITDA (earnings before interest, taxes, depreciation and amortization) in 2016. GFL will fund the acquisition through a combination of stock and debt. Press Release
Canadian Oil Sands says it's reviewing its options ...
Canadian Oil Sands is looking at a range of alternatives to Suncor's bid, including mergers, partnerships and sales.
"I can tell you that there is interest there. The process is just starting and is being run with our financial advisers, the Royal Bank [of Canada] and with our board," chief executive officer Ryan Kubik told The Globe and Mail's Jeffrey Jones. "That process is going to take time to play out – we did put our shareholder rights plan in place to protect our shareholders and really give ourselves the time required to assess the full range of alternatives."
Its efforts have the support of numerous shareholders, who have told Mr. Kubik in private meetings that the offer is too low, he said.
... and Suncor's CEO maintains the bid is fair
Steve Williams, CEO of Suncor Energy Inc., told Canadian Oil Sands Ltd. shareholders not to expect a higher offer. He says the bid valued at $4.3-billion is good enough, particularly in light of the distressed market in crude oil. Story
Monster pharma M&A deal possible
Earlier this week, Mark Thompson, CEO of Canadian pharmaceuticals company Concordia Healthcare, told The Globe and Mail that the "M&A market is not dead" and to expect more consolidation in the global pharma industry. He may be onto something.
On Thursday, Allergan PLC and Pfizer Inc. confirmed they are in preliminary talks on a potential merger. If the pair tie the knot, they would create the world's largest drug maker. Shares in Dublin-based Allergan, which is expected to be the acquiree, shot up on the announcement.
Talk of a monster deal in pharma added juice to a sector that has been hit hard over the past six weeks, particularly in North America after the drug-pricing issue blew up. Then doubts emerged over Valeant Pharmaceuticals International Inc.'s (one of the most acquisitive companies in pharma) accounting. Some have speculated that Valeant's best deal-making days could be behind it, due to its beaten-down stock price and the rising price of debt.
Interestingly, Valeant spent a good chunk of 2014 trying to buy Allergan with the assistance of hedge fund manager Bill Ackman. Mr. Ackman ultimately made a big profit on the outcome, which saw Allergan sold to rival suitor Actavis. He eventually sold his Allergan shares and put the money into Valeant instead – which has turned out to be a disatrous investment decision so far. Story
INITIAL PUBLIC OFFERINGS
Freshii Considering IPO
According to Bloomberg, Canadian restaurant chain Freshii is talking to investment bankers about a possible initial public offering.
Bloomberg reported that any offering would not happen until 2016 at the earliest.
Freshii, which markets itself as a healthy fast-food option with offerings such as salads, wraps and smoothies, was founded in 2005 by Winnipeg-born Matthew Corrin. The company opened its first store in Toronto and now has locations in the U.S. and internationally.
While Mr. Corrin is evidently a bit of a health nut, he is not holier-than-thou. When asked earlier this year, by The Globe and Mail's Susan Krashinsky what his biggest vice was, Mr. Corrin replied. "I probably drink too much scotch." Story
Hydro One sale to hurt, not help, Ontario's bottom line ...
Ontario's planned privatization of Hydro One will cost the government up to $500-million every year in lost revenue and drive up the province's debt, according to a report from the province's Financial Accountability Officer Stephen LeClair. This explosive assertion undermines Premier Kathleen Wynne's argument that the unpopular sale of Hydro One must proceed in order to raise new funds to pay for transit. Story
... but the IPO is going well
After months of ardent speculation, Hydro One is officially going public. Few people can be happier about it than Ed Clark.
Despite furious opposition to the deal – from other provincial parties as well as a powerful union – the Ontario utility successfully priced its IPO at $20.50 a share on Thursday. That's near the high end of their marketing range, proving there was substantial investor demand for the deal. In total, the province is expected to raise $1.83-billion from the sale. Story
VENTURE CAPITAL
Qvella Raises $20-million in venture capital
Qvella, a Richmond Hill, Ont.-based biotechnology company, has raised $20-million (U.S.) in a Series A financing round.
RA Capital Management, Whitecap Venture Partners, Hatteras Venture Partners and Sands Capital Ventures were the main investors.
Qvella plans to use some of the funds for product development. The company is working on various technologies that aim to speed up the diagnosis of bacterial infections. Press release
RANDOM RANT
Enough with the 'offering solutions' terminology
Among the worst terminology I see all the time in press releases is: Company XYZ "offers solutions."
Companies sell products. They do not "offer" "solutions."
"Offer" could be interpreted as giving something away for free and "solution" implies solving a problem. For-profit companies are not in the business of solving your problems for free.
Whenever you see the term "solution" in a press release, simply replace it with the world "product," and whatever you are reading will make a lot more sense.
The term "solution" is astonishingly common in press releases. Try doing a search with this super-annoying word in Marketwired, a popular North American newswire service, and you'll see what I mean.
Marketwired itself has a whole section called "solutions." As far as I can tell, it's simply a description of various products Marketwired sells.
If you have any story suggestions for Daily Deals, e-mail us at deals@globeandmail.com or nmcgee@globeandmail.com.