Stikeman Elliot, Torys, Fasken, Prévost Fortin D'Aoust also legal counsel this week
McCarthy Tétrault and Davies Ward Phillips & Vineberg assisted Corus Entertainment in the sale of its animation software business valued at $147.5 million. Also included in this deals roundup are Stikeman Elliot, Torys, Fasken, and Prévost Fortin D'Aoust as legal counsel.
Corus Entertainment to sell Toon Boom Animation to IMC for $147.5 million
Corus Entertainment Inc., through its subsidiary Nelvana Limited, signed an agreement to sell its Montreal-based animation software business Toon Boom Animation Inc. to Integrated Media Company (IMC) in a deal valued at approximately $147.5 million.
McCarthy Tétrault LLP is serving as legal counsel and LionTree Advisors as exclusive financial advisor to Corus on this transaction.
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Davies Ward Phillips & Vineberg LLP and Weil, Gotshal & Manges LLP are serving as Canadian and US counsel, respectively, to IMC on this transaction.
The software from Toon Boom is the industry standard for pipeline management, storyboarding, and 2D animation. In 2004, Corus acquired a 50 percent stake in Toon Boom, then in 2012, it acquired the remaining 50 percent.
“Corus is building a powerful multiplatform business aggregating premium video content,” said Corus EVP of Content and Corporate Strategy Colin Bohm. “After an enterprise-wide review of our operating model and asset base, we have decided to exit the animation software business. This move will free up capital, increase Corus' financial flexibility, and sharpen our focus as we advance our strategic plan and priorities.”
“Toon Boom empowers creators of all types to bring their stories to life through a versatile platform that offers powerful storyboarding, extensive animation capabilities, and tools for streamlining the production process,” said IMC Vice President Yuning Zhang. “With a best-in-class product, Toon Boom has established itself as an innovative market leader with a best-in-class product suite. Its exceptional tools are trusted by both large and small creative teams, as well as educational institutions shaping the next generation of talent. We are excited to collaborate with the team at Toon Boom to expand their platform into new markets and to introduce ground-breaking products.”
The deal is expected to close by the end of 2023, subject to customary adjustments and closing conditions.
Structured Alpha LP to acquire Liminal BioSciences
Liminal BioSciences Inc.,a development stage biopharmaceutical firm, and Structured Alpha LP (SALP), a fund managed by Thomvest Asset Management Ltd., entered into an agreement under which SALP will acquire all of the issued and outstanding common shares of Liminal BioSciences that it does not already own.
Torys LLP is serving as legal counsel and Langstaff & Co. as financial advisor to SALP.
Stikeman Elliot LLP and Cooley LLP are serving as Canadian and US legal counsel, respectively, to Liminal BioSciences, and BMO Capital Markets is acting as independent financial advisor to the Special Committee.
“After an extensive process led by a special committee comprised of disinterested and independent directors, we are pleased to have agreed terms on a transaction with SALP that has the full support of the Liminal BioSciences board,” said Liminal BioSciences CEO Bruce Pritchard. “The transaction will deliver immediate value and liquidity to our minority shareholders at a substantial premium. Reaching this point is a testament to everything that the entire Liminal BioSciences team has accomplished. We look forward to partnering with SALP to continue to pursue our goal of developing and delivering cutting edge treatment to patients.”
The deal is anticipated to be completed by September 30, 2023, subject to customary closing conditions.
Groupe Touchette acquires Quebec-based Fastco Canada
Groupe Touchette Inc., the largest Canadian-owned tire distributors, has acquired Fastco Canada, a Quebec-based alloy wheel producer.
Prévost Fortin D'Aoust LLP served as legal counsel to Groupe Touchette, with Ernst and Young as financial advisor, KPMG as tax advisors and Fasken Martineau DuMoulin LLP for the legal financing.
Tony Fratianni, Founder and President, GC Plus Advisory Services served as Fastco's legal counsel, Sam Spatari CPA and partner at PSB Boisjoli LLP served as financial advisor, Kevin Perkins at PSB Boisjoli LLP served as tax advisor, and Michael Pesner of Hermitage Finance Canada Inc. and Glen Brown at i3Legal Inc. served as M&A advisors on the transaction.
Groupe Touchette co-owner and CEO Nicolas Touchette said, “Our collaboration opens new avenues for both companies and allows us to expand our product offering as part of our strategic plan. While remaining independent, both companies will continue to operate with common objectives to provide our customers with the best experience in the tire and wheel categories.”
Groupe Touchette co-owner and COO Frédéric Bouthillier said, “Fastco Canada has not only been at the forefront of forward-looking sectors such as electric vehicles (EVs) but has created unique resources such as FastFinderTM that enable us to offer exclusive data and precise fitment solutions to our customers.”
Fastco Canada President Glenn Chaplin said, “This announcement opens new opportunities and further expands our position as Canada's leader in the design, production and distribution of alloy and steel wheels. It will also increase the strength of our brands and open new opportunities for us in the future.”
Under the agreement, both companies and their respective teams will remain independent. Fastco Canada will maintain its brands and management team and its operations in Vaudreuil-Dorion, QC and Airdrie, AB will continue as usual.