| TORONTO, June 4
TORONTO, June 4 Canadian private equity firm
Fulcrum Capital Partners said on Wednesday it has acquired a
majority interest in privately-held Canadian defence and
infrastructure firm Weatherhaven Global Resources, a maker of
The two parties did not disclose the terms of the deal, but
said Weatherhaven's founding shareholders are stepping back and
will assume an advisory role while its current management team,
led by CEO Ray Castelli, have reinvested and will continue to
lead the firm.
Last year, the Burnaby, British Columbia-based Weatherhaven
engaged an M&A firm in the defence and aerospace industry to
assist in identifying a financing partner. The company said it
received over a dozen competitive bids, but chose Fulcrum due to
its Canadian heritage and track record of growing small and
Fulcrum said its decision to invest in Weatherhaven was tied
to Canada's announcement of a new defence procurement strategy
this year. It said Weatherhaven has enjoyed tremendous growth in
the last six years, and with new shelter designs, the company is
poised to build on this trajectory.
Last month, Fulcrum was one of two winners of the Canada
Venture Capital & Private Equity Association (CVCA) deal of the
year award for 2014 for its investment in A&B Rail Services Ltd,
a rail track construction and maintenance firm.
In 2008, Fulcrum invested C$9.6 million to buy a controlling
interest in A&B Rail. It aggressively grew the business along
with the A&B Rail management team and in 2013, Fulcrum sold A&B
to a private equity investor group led by TorQuest Partners,
realizing total cash proceeds of C$137 million.
Fulcrum's larger rival Brookfield Asset Management
was the other winner of the CVCA award for its bet on Longview
Fibre Paper and Packaging. In 2013, Brookfield sold Longview to
KapStone Paper & Packaging Corp and realized proceeds of
about $1.1 billion.
(Reporting by Euan Rocha; Editing by Sofina Mirza-Reid)