Other deals this week include investment, M&A deals in marketing, infrastructure sectors
The Quebec mining industry is expected to see developments as a result of the $14.3 billion (US$10.6 billion) merger of two of the world’s largest lithium producers. Also in this week’s deals roundup are investment and M&A deals in the marketing and infrastructure sectors.
Liven, Allkem $14-billion merger to create Quebec lithium powerhouse
US-based Livent and Australia-based Allkem, two of the world’s largest lithium producers, entered a $14.3 billion (US$10.6 billion) merger expected to create an industry powerhouse on Canada, Argentina and Australia.
In Quebec, Livent and Allkem are both building hard rock lithium mines approximately 100 kilometres apart.
Livent owns 50 percent of the Nemaska mine project, which is expected to start producing lithium in 2024. The other half of the project is owned by Investissement Québec. Allkem owns the James Bay mine property, which is expected to have a development cost of approximately $386 million (US$286 million) and should begin production by 2026.
Livent CEO Paul Graves said, “As a combined company, we will have the enhanced scale, product range, geographic coverage and execution capabilities to meet our customers’ rapidly growing demand for lithium chemicals. We look forward to playing an even bigger role in the acceleration of decarbonization policies.”
Graves will take the top job at the new entity, while Allkem CEO Peter Coleman will be chair of the combined companies.
Bond receives investment from US-based Mountaingate
Bond, a Toronto-based customer experience, loyalty, and growth firm, received a strategic investment from Mountaingate Capital, a US-based, growth-focused private equity investment company. The amount of the deal was not disclosed.
Hogan Lovells and Davies Ward Philips & Vineberg served as legal counsel to Mountaingate in the transaction. Houlihan Lokey, DLA Piper and Deloitte were advisors to Bond.
With more than 800 employees working in offices across North America and Europe, Bond has grown to be a truly global company, serving clients in industries as diverse as retail, transportation, healthcare, and financial services.
“Bond's success is a direct result of its ability to generate customer growth for its clients," said Trent Sisson, Managing Director of Mountaingate. "Bond is a unique platform we are committed to expanding organically through great work as well as through acquisitions of like-minded businesses. We're excited to partner with CEO Bob Macdonald, his leadership team, and a deep bench of global talent to grow the ways Bond can continue to deliver innovation and serve clients.”
“Mountaingate is an ideal strategic partner to help Bond drive scale at this important juncture," said Macdonald. "From our 'both sides of the counter' approach to brand experiences to leading edge technology platforms to a people-first culture, our strategy is delivering. We were purpose-built to create impact at every touchpoint of the customer journey and Mountaingate's alignment with that vision is essential in attaining next-level growth for our clients, our people, and all the communities in which we operate.”
Lite Access to acquire Ironman Directional Drilling
Lite Access Technologies Inc., a leading name in fibre optic products and advanced installation methodologies, signed a letter of intent to acquire Ironman Directional Drilling Ltd.
As consideration, Lite Access will pay $6 million in cash to the shareholders of Ironman, which will be payable in equal instalments of $1.2 million commencing twelve months from the closing date and continuing every 12 months thereafter over a period of 60 months.
Upon deal completion, Mike Plotnikoff, current Lite Access CEO, and Alex McAulay, Lite Access director, will resign from their positions. Lite Access will appoint four new directors, being Bob Scott, Richard Hayer, Jason Earl and Calvin Irmen, on closing of the transaction.
Plotnikoff said, “Lite Access's proposed acquisition of Ironman confirms our commitment to fast track the growth of our business in Canada and abroad. Ironman, led by Mike Irmen, has established itself as one of the premier directional drilling service providers in Western Canada. This acquisition will be immediately accretive to our revenue and will add significant new project flow to our company.”
Mike Irmen will replace Plotnikoff as Lite Access CEO upon deal completion.
