Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.
Issue link: https://digital.carswellmedia.com/i/945258
38 LEXPERT MAGAZINE | MARCH/APRIL 2018 owed for Trayport in cash. ICE, which owns the New York Stock Exchange, announced it would sell Traypo- rt this past summer aer losing an appeal to overturn a decision by Britain's compe- tition watchdog requiring its divestiture in order to maintain competition in the UK's energy markets. TMX Group said the transaction was expected to have a positive impact on its adjusted earnings per share, and be accretive in 2018. INFRASTRUCTURE & UTILITIES DEAL OF THE YEAR Alectra Inc. acquires Hydro One Brampton When Alectra Inc. completed the US$460- million acquisition of Hydro One Bramp- ton from the Province of Ontario in Feb- ruary, it created the largest municipally owned electricity utility in Canada based on the number of customers served. Alectra itself was formed on Jan. 31, 2017, through the merger of Enersource, Horizon Utilities and PowerStream. e Hydro One Brampton acquisition com- pletes the transaction, which was first an- nounced in 2015. Alectra, through its subsidiary Alec- tra Utilities Corp., serves about a mil- lion homes and businesses in the Greater Golden Horseshoe Area — 1,800 square kilometres that includes 15 Ontario com- munities and cities, such as Mississauga, Hamilton, St. Catharine's, Barrie, Bramp- ton, Greater Waterloo and Niagara. e company said it expects that, over time, ef- ficiencies from the deal will reduce pressure on customer distribution rates, improve customer service and system reliability, and add more robust emergency-response capa- bilities for inclement weather. "We are committed to providing best-in- class service to the residents and businesses … across the entire Alectra service territory, and growing the value of the company to provide optimal returns for our sharehold- ers," Alectra President and CEO Brian Bentz said when the deal was announced. Alectra said it will also increase invest- ments in innovation and technologies, pro- viding better energy choices for customers in its service territory and beyond. MID-MARKET DEAL OF THE YEAR Rogers Sugar's Lantic subsidiary buys L.B. Maple Treat Corp. Rogers Sugar Inc. spent $160.3 million (subject to post-closing adjustments) to buy L.B. Maple Treat Corp., known as LBMT, for one sector of its market: consumers who want unrefined natural sweetener options. Rogers did the deal through its wholly owned subsidiary Lantic Inc. John Holliday, the parent company's President and Chief Executive Officer, said Lantic is acquiring LBMT "to build a new natural sweetener growth platform that joins our 125-plus year heritage busi- ness operated and headquartered in Mon- treal, Québec." He called the transaction "significant for Rogers Sugar," saying it fits perfectly with the company's long-term strategy to continue to build and invest in natural sweetener businesses and products. Lantic has been in the sugar business for over 100 years and is the leading re- finer, processor, distributor and marketer of sugar products in Canada. As the sole sugar processor in Western Canada, it supplies over 90 per cent of the region's demand for refined sugar, and is one of only two major sugar refiners in Eastern Canada. LBMT is one of the world's larg- est branded and private-label maple syrup bottling and distribution companies. It has two bottling plants in Québec and one in Vermont. e business has distri- bution centres in Eastern and Western Canada, the US and Australia. Holliday said that, while company sees opportunities for various synergies be- tween Lantic and LBMT, LBMT will be operated as a separate entity from its head- quarters in Granby, Québec. MINING DEAL OF THE YEAR PotashCorp merges with Agrium to form Nutrien A friendly US$18.33-billion all-share merger combining Potash Corp. of Sas- katchewan Inc.'s huge fertilizer mining op- erations with Calgary-based Agrium Inc.'s extensive direct-to-farmer global retail net- work is seen as a transformational transac- tion that creates a Canadian agricultural giant. e new company, Nutrien Ltd., has an enterprise value of roughly US$36 billion, making it the largest crop-nutrient company in the world, with 20,000 em- ployees, annual revenue of $20.6 billion, and operations in 18 countries. e move comes as prices for potash and other fertilizers have been sliding for years, and represents an attempt to create value in a fiercely competitive market. e com- panies expect to save up to $500 million a year through cost-cutting, sharing storage and shipping networks, and using mines and factories more efficiently. e proposed transaction, approved by Canada's Competition Bureau, had condi- tions imposed by several international reg- ulators. e merger received clearance in Brazil, Russia and India, which demanded some asset sales. China's ministry of com- merce also required PotashCorp to sell its minority holdings in Arab Potash Co. and Sociedad Quimica y Minera de Chile S.A. within 18 months of closing, and in Israel Chemicals Ltd. within nine months. e Chinese approval also requires Pot- ashCorp to convert its equity interest in Sinofert Holdings Ltd. to a passive invest- | CANADIAN DEALMAKERS AWARDS |