Oaktree Capital acquires NAPEC Inc.

Date Closed

February 14, 2018

Lead Office

Toronto

Value

320.00 Million CAD

On February 14, 2018, Oaktree Capital Management LP ("Oaktree") announced that it has completed the acquisition of NAPEC Inc. ("NAPEC") through 9370-0219 Québec Inc. (the "Purchaser"), a company organized by Oaktree. Pursuant to the statutory arrangement under the Canada Business Corporations Act (the "Arrangement"), the Purchaser acquired all of the issued and outstanding common shares of NAPEC for $1.95 in cash per share (the "Consideration") for a total transaction value of approximately C$320 million, including assumption of debt. In addition, each warrantholder of NAPEC will receive a cash payment equal to the amount (if any) by which the Consideration exceeds the exercise price of such warrant.

This transaction will provide Oaktree with the opportunity to combine its experience in the energy sector, its network and its financial resources with NAPEC's management team to continue to drive NAPEC's growth in the North American utility services market.

Oaktree is a leader among global investment managers specializing in alternative investments, with US$100 billion in assets under management as of September 30, 2017. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. 

NAPEC is a company operating in the energy sector. NAPEC is a leading provider of construction and maintenance services to the public utility and heavy industrial markets, mainly in Quebec, Ontario and the eastern United States.

McCarthy Tétrault LLP advised Oaktree with a team led by David Woollcombe that includes Fraser Bourne, Myreille Gilbert and Xin Gao (Corporate), Cindy Vaillancourt (Environment), Richard O’Doherty (Financial Services), Robert Nearing and Angelo Discepola (Tax), Lorraine Allard, Diana Theophilopoulos and Patrick Pengelly (Labour & Employment), and François Giroux (Litigation).

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