CanWel Building Materials Group Ltd. (CanWel) completed the acquisition of California Cascade Industries (CCI) and its private placement of 8,050,000 subscription receipts for gross proceeds of $40,250,000 pursuant to a bought deal underwritten by a syndicate of underwriters. The proceeds raised under the private placement are inclusive of an additional $5,250,000 raised in connection with the exercise in full by the Underwriters led by GMP Securities L.P., and including Raymond James Ltd., Canaccord Genuity Corp., Haywood Securities Inc., and Cormark Securities Inc. of their option to arrange for the purchase of an additional 1,050,000 subscription receipts.
CanWel also completed a non-brokered concurrent private placement of 2,385,000 subscription receipts to certain insiders of the company with proceeds of $11,925,000 under the same terms as the private placement. The acquisition was valued at US$56.6 million. In connection with the acquisition, the shareholders of a CCI affiliate elected to receive US$15 million of CanWel common shares as partial consideration under the acquisition and will remain employed with CanWel for two years.
CanWel is one of Canada’s largest national distributors in the building materials and related products sector, operating distribution centres coast to coast in all major cities and strategic locations across Canada.
CanWel was represented in Canada by Goodmans LLP with a team including Michael Partridge (corporate) and Carrie Smit (tax); and in the US by Dorsey & Whitney LLP with a team including Randal Jones, Jonathan Van Horn, Joseph Phelps and Jenn Hu (corporate), John Hollinrake Jr. and Kendall Fisher (tax), Michael Droke and Ieva Aubin (labor and employment), Robert Olson (real estate) and Kieran Dwyer (environmental).
GMP was represented by Wildeboer Dellelce LLP with a team including Troy Pocaluyko, Jeff Hergott and Jamie Bregman (corporate).
The Vendor was represented by Rubin and Rudman LLP with a team including Ralph Rivkind, Thomas McHugh and Thomas Brantley (corporate, business and tax).