American Capital, Ltd.

American Capital Ltd. and its Canadian Portfolio Company in its Sale of Service Experts

Client

American Capital, Ltd.

Value

US$340 million

Service

Mergers and Acquisitions

Date Closed

May 2016

Lead Office

Toronto

 

On May 11, 2016, American Capital, Ltd. (“American Capital”) announced that its portfolio company SEHAC Holdings Corporation and subsidiaries (“Service Experts” or the “Company”) merged with a subsidiary of Enercare Solutions Inc., a wholly-owned subsidiary of Enercare Inc., one of Canada’s largest home and commercial services companies. The total purchase price for the transaction was US$340.75 million, subject to customary working capital and other post-closing adjustments. Over the life of the investment, American Capital realized 18 times its investment in the Company and generated a compounded annual rate of return of 184%, including interest, dividends, fees and realized gains.

American Capital is a publicly traded private equity firm and global asset manager that acquired Service Experts in March 2013.

Osler acted as Canadian counsel for American Capital on the transaction (and also on the 2013 Acquisition) with a team led by Geoff Taber that included Brian Gray and Michelle Qu (M&A), Richard Borins (Banking and Finance), Peter Glossop and Kaeleigh Kuzma (Competition) and Dov Begun (Tax).