Great-West Lifeco’s $1.8-billion asset sale to US investment giant also in deals roundup
Stikeman Elliott is serving as legal counsel in the $294 million (US$218.6 million) sale of Thunder Bay paper mill to a US private equity firm. Also in this deals roundup is the $2.42 billion (US$1.8 billion) sale of Great-West Lifeco’s wealth management asset to a US-based investment giant.
Montreal-based Resolute Forest Products Inc. and US private equity firm Atlas Holdings signed an agreement for an affiliate of Atlas to acquire Resolute’s pulp, newsprint and directory paper mill operations in Thunder Bay, Ontario, in a deal valued at $294 million (US$218.6 million).
Stikeman Elliott is serving as legal counsel and BMO Capital Markets as exclusive financial advisor to Resolute.
Upon deal completion, the Thunder Bay mill will operate as a standalone company and a member of Atlas’ global family of manufacturing and distribution businesses. The transaction agreement also includes Resolute continuing to supply woodchips and biomass to the mill.
Resolute president and CEO Remi G Lalonde said, “The mill is an exceptional asset. I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future, and I sincerely wish them all the best.”
Atlas partner Neil Mahajan said, “We understand Thunder Bay’s importance as a pillar of the local economy, and we look forward to bringing our deep experience in pulp and paper as we convert the mill into a stable, independent enterprise.”
The deal is expected to close by the end of 2023, subject to regulatory approvals.
Great-West Lifeco Inc. has agreed to sell wealth manager Putnam Investments to US-based Franklin Templeton, one of the world’s largest independent and diversified asset managers, in a deal valued at $2.42 billion (US$1.8 billion).
Sullivan & Cromwell LLP is serving as legal counsel and Morgan Stanley & Co. LLC and Rockefeller Capital Management as financial advisors to Lifeco and Putnam Investments.
Willkie Farr & Gallagher LLP is serving as legal counsel and Ardea Partners LP and Broadhaven Capital Partners LLC as financial advisors to Franklin Templeton.
“As client needs for asset management continue to evolve, Franklin Templeton’s scale and breadth, together with Putnam’s complementary capabilities will drive positive outcomes for our companies, our clients, and our investors,” said Lifeco president and CEO Paul Mahon. “This transaction furthers Lifeco’s strategy of building and extending strategic partnerships with best-in-class asset managers to support our clients’ retirement, group benefits, and personal wealth management needs.”
Franklin Templeton president and CEO Jenny Johnson said, “With outstanding investment performance, Putnam will add complementary capabilities to our existing specialist investment managers to meet the varied needs of our clients and will increase Franklin Templeton’s defined contribution AUM.”
Putnam Investments CEO Robert Reynolds said, “Critical to this transaction is the strong alignment between our organizations. We share a client-centric culture, a core belief in active management, a collaborative and research-based investment approach, and a long-held commitment to fundamental investment principles.”
The deal is anticipated to close at the end of the fourth quarter, subject to customary closing conditions. Lifeco has agreed to retain shares representing approximately 4.9 percent of outstanding Franklin Templeton stock for a minimum 5-year period.
Greek industrial group Mytilineos SA has agreed to acquire and develop five Alberta-based solar projects from energy storage developer Westbridge Renewable Energy Corporation, in a deal valued at $1.7 billion.
The largest of its kind in Canada, the solar energy sites are expected to be fully operational by the end of 2026 and are anticipated to generate enough power for 200,000 homes.
Mytilineos chairman and CEO Evangelos Mytilineos said, “True to its policy of expanding its Renewables business internationally, MYTILINEOS has taken early advantage of the motives that the Canadian government is granting to new renewable developments and decided to proceed with the investment, the biggest so far of the Energy Business Unit in the history of MYTILINEOS.”
Westbridge Renewable director and CEO Stefano Romanin said, “I would like to thank our team for their hard work and dedication, resulting in our status as one of the largest solar PV developers in Canada within two years of our RTO, and attracting a multinational investor like MYTILINEOS to acquire, construct, and operate the projects.”
