Investors Acquire Huntingdon Mills (Canada) Shares

A group of investors, led by Champlain Capital Partners, acquired all issued and outstanding shares of Quebec-based Huntingdon Mills (Canada) Ltd. from Schroders Venture Managers (Canada) Ltd., Schroders Ventures Holdings Ltd. and personal holding companies of Joey Schwebel and David Turner. The transaction closed on September 23, 2002, and the value is undisclosed.

In addition to the equity contributions of the investment group, the transaction was financed by a senior term credit facility with CIBC as administrative agent, a senior subordinated credit facility with CCFL Subordinated Debt Fund (III) LP, as administrative agent and a subordinated convertible loan from RoyNat Capital. CCFL and RoyNat also form part of the investor group.

The investor group was represented by Stikeman Elliott, with a team that included Christine Desaulniers, Howard Rosenoff, Natalie Gosselin, Nicolas Vanasse and Sophie Lamonde. The vendors were represented by Richard Cherney, Angelo Nikolakakis, Justin Vineberg and Philippe Johnson of Davies Ward Phillips & Vineberg LLP. Janice Naymark and Joel Goldman of Spiegel Sohmer acted as special counsel to Joey Schwebel and David Turner.

Michel Deschamps, Jean-François Boisvenu and Martine Boucher of McCarthy Tétrault LLP represented CIBC. CCFL was represented by Michael Slan and Karen Rosen of Fogler, Rubinoff LLP. Eric Boulva of Robinson Sheppard Shapiro acted as Quebec counsel to CCFL. RoyNat was represented by Norm Saibil and Marc-Antoine La Rochelle of Blake, Cassels & Graydon LLP.