Canam closes $875M privatization by AIP, Dutil family, CDPQ, Fonds de solidarité

Canam Group Inc. (TSX: CAM) has closed previously announced going private transaction by American Industrial Partners (AIP), valuing the company at an enterprise value of approximately $875 million including the assumption of existing indebtedness.

Canaveral Acquisition Inc., a company incorporated and organized by American Industrial Partner Capital Fund VI, L.P., has acquired all of the issued and outstanding shares of Canam Group at a price of $12.30 in cash per share, except for the rollover shares held by Placements CMI Inc., Marcel Dutil, 9085-6063 Québec Inc., Hélène Dutil, Idmed Inc., Marc Dutil, Charles Dutil, Sophie Dutil Jones, and Anne-Marie Dutil Blatchford and any holding corporation controlled by such persons, Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ.

The rollover shareholders owned 29.32% of Canam outstanding shares.

CDPQ has agreed to make a cash contribution to the purchaser and the rollover shareholders have agreed to make an equity contribution to the purchaser through the transfer and assignment to the purchaser of majority of their Canam shares. Upon closing, the rollover shareholders might own as much as 40% of equity in the purchaser.

Norton Rose Fulbright Canada LLP acted as independent legal counsel to the Special Committee and Fasken Martineau DuMoulin LLP as legal counsel to Canam. BMO Capital Markets acted as financial advisor to the Special Committee and Deloitte LLP provided fairness opinion.

Morgan Stanley served as the financial advisor to AIP. Stikeman Elliott LLP and Ropes & Gray LLP acted as legal counsel to AIP, Stein Monast LLP acted as legal counsel to Dutil family group, and McCarthy Tetrault LLP acted as legal counsel to CDPQ and Fonds de solidarité.

Canam Group specializes in designing integrated solutions and fabricating customized products for the North American construction industry. The company operates 23 plants across North America and employs over 4,650 people in Canada, the United States, Romania and India.

photo credit: Canam Group

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal and CanadaMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, the most sophisticated and advanced all private capital and public market financing database.