20 | RETAIL Lexpert Special Edition
Huot, Jean Marc
Stikeman Elliott LLP
(514) 397-3276
jmhuot@stikeman.com
Mr. Huot is Co-chair
of the fi rm's securities
practice. Focuses on
securities, M&A and
governance. Acts for
issuers, under writers,
governments, investment
funds, acquirors and
targets. Experienced
in international tender
off ers and privatizations.
Jewett, Peter E.S.
Tor ys LLP
(416) 865-7364
pjewett@torys.com
Mr. Jewett chairs Tor ys'
corporate and capital
markets department.
Expertise in national and
international corporate
fi nance and M&A.
Acts on privatizations
of major federal and
provincial enterprises
and many of Canada's
largest M&A deals.
Johnson, Glen R.
Tor ys LLP
(416) 865-8146
grjohnson@tor ys.com
Mr. Johnson focuses on
domestic & cross-border
securities off erings &
regulation, and corporate
fi nance and M&A matters.
He advises Canadian
issuers, registrants
and other securities
industr y participants
on a range of securities
regulator y matters.
Jenkins, William K.
Dentons Canada LLP
(403) 268-6835
bill.jenkins@dentons.com
Mr. Jenkins's transactional
practice focuses on M&A;
equity, debt and other
corporate fi nancings;
and joint ventures.
His clients include
corporations, investment
dealers and banks. He
presents frequently on
corporate fi nance topics.
Johnson, Elizabeth J.
Wilson & Partners LLP
(416) 869-2414
elizabeth.j.johnson@
ca.pwc.com
Managing partner of
PwC Canada's affi liated
tax law fi rm. Ms. Johnson
focuses on M&A
transactions, corporate
reorganizations and cross-
border structuring. She
has written extensively on
partnership taxation and
anti- avoidance rules.
Kalbfl eisch, Peter C.
Blake, Cassels &
Graydon LLP
(604) 631-3377
peter.kalbfl eisch@
blakes.com
Mr. Kalbfl eisch practises
corporate and securities
law, with an emphasis on
M&A and corporate
fi nance. He advises
purchasers, targets, vendors
and fi nancial advisors on
M&A transactions and
issuers and under writers
on securities off erings.
LEXPERT
®
RANKED LAWYERS
words, retail is a good sector to invest in if
you're bullish on the US economy."
Canada
But will this be mirrored in Canada?
Not necessarily. In contrast, says Merci-
er, the Canadian economic outlook for
2014 is a little more uncertain. " ere's
a booming housing
market, but consumer
debt levels in Canada
are very high. In addi-
tion, there's not been
much job growth and
there is uncertainty
as to whether interest
rates are going to rise."
So the question, says
Mercier, "is whether
or not the economic
uncertainty here will
impact retail M&A
north of the border,
particularly for private
equity-buyers."
Canada certainly isn't
the largest player in the
global retail space, but
we've got brands that
resonate with consum-
ers. Should the Cana-
dian economy brighten
and private equity
become more active in retail M&A, it's
likely that at least some deals will involve
retailers with high-end and niche brands.
"Private equity really likes deals where
they feel they can grow the brand glob-
ally by investing capital and applying
their operating expertise," says Mercier.
"Good examples of these in Canada are
Bain's investment in Canada Goose and
Bombardier recreational products, and
Highland Capital Partners' investment
in Lululemon, and globally you have the
recent example of Blackstone investing
in Versace."
Numbers
e reality is that "Canadian retailing is a
tough place to be," says Douglas Bryce, a
partner with Osler, Hoskin & Harcourt
LLP. " e margins are skinny, the com-
petition is fi erce, then there's the currency
volatility and Canadian consumers seem
to be more careful with their wallets than
US consumers."
Still, it's a numbers game when it comes
to large retail M&A transactions, as to
just how many take-out candidates there
truly are in Canada. In hindsight, suggests
Bryce, "2013 may well have been an out-
lier year. If you combine the Sobeys/Safe-
way, Loblaw/Shoppers and the Hudson's
Bay/Saks deals, those three buckets to-
gether accounted for signifi cant volume
of the M&A activity in the retail sector in
2013. Looking forward, there's a shrink-
ing pool of large Canadian-owned retail-
ers le and that fact alone is going to put
a ceiling on deal volumes."
For companies looking to grow their
revenue "in the ridiculously competitive
retail environment in North America, the
"[IN THE US,] RIGHT NOW
THERE'S A LOT OF INTEREST
IN THE RETAIL SECTOR FROM
PRIVATE EQUITY BECAUSE
RETAIL IS IN EFFECT A PLAY ON
THE US ECONOMY AND THE US
CONSUMER. AS THE HOUSING
MARKET AND THE ECONOMY IN
THE US IMPROVES, CONSUMERS
SHOULD SPEND MORE, WHICH
SHOULD SHOW UP IN RETAILERS'
BOTTOM LINES. IN OTHER
WORDS, RETAIL IS A GOOD
SECTOR TO INVEST IN IF YOU'RE
BULLISH ON THE US ECONOMY."
– Vince Mercier, Davies Ward Phillips & Vineberg LLP
