M&A Deal Summary

CAI Capital Partners and Banyan Capital Partners Acquire The Corix Group

On May 22, 2006, private equity firms CAI Capital Partners and Banyan Capital Partners acquired utilities company The Corix Group from Kinder Morgan for 125M CAD

Acquisition Highlights
  • This is CAI Capital Partners’ 1st and Banyan Capital Partners’ 1st transaction in the Utilities sector.
  • This is CAI Capital Partners’ and Banyan Capital Partners’ 0th largest (disclosed) transaction.
  • This is CAI Capital Partners’ 8th and Banyan Capital Partners’ 3rd transaction in Canada.
  • This is CAI Capital Partners’ 1st and Banyan Capital Partners’ 2nd transaction in British Columbia.
Investment Fate
  • The Corix Group was sold to a consortium of financial buyers in 2012.

M&A Deal Summary

Date 2006-05-22
Target The Corix Group
Sector Utilities
Buyer(s) CAI Capital Partners
Banyan Capital Partners
Sellers(s) Kinder Morgan
Deal Type Divestiture
Deal Value 125M CAD

Target

The Corix Group

Richmond, British Columbia, Canada
website
The Corix Group (formerly Terasen Water and Utility Services) is a leading utility infrastructure provider of products and services in Canada and the United States, active in the water, wastewater and energy sectors. Headquartered in Vancouver, British Columbia, Corix designs, builds, supplies and manages community utility infrastructure, including the pipes, valves, fittings, and systems that treat and transport water and wastewater. With over 900 employees and more than 65 years of experience, Corix has a successful track record of providing cost-effective, safe and efficient utility infrastructure solutions.

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Buyer(S) 2

Buyer
DESCRIPTION

CAI Capital Partners is a private equity firm that generally targets lower middle-market, profitable companies with $3 million or more of EBITDA. CAI Capital Partners invests in Business services or specialty manufacturing. CAI has partnered with companies across North America focused on Canada. CAI Capital Partners was formed in 1989 and has offices in Vancouver and New York City.


DEAL STATS #
Overall 15 of 31
Sector (Utilities) 1 of 2
Type (Divestiture) 1 of 1
State (British Columbia) 1 of 8
Country (Canada) 8 of 19
Year (2006) 2 of 3
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-08 Douglas Machine & Tool

Cincinnati, Ohio, United States

Douglas Machine, based in Cincinnati, Ohio, was a leading manufacturer of industrial and aerospace gas turbine engine components. Widely considered to be the leading provider of drilling services to the turbine industry, Douglas Machine was named GE Power Systems' "Supplier of the Year" in 2002-2004. Its unique EDM process technology enables it to produce the lowest cost and highest quality precision components in the industry. An additional facility in Budapest, Hungary serves European customers.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-23 GLM Industries

Nisku, Alberta, Canada

GLM, founded in 1977 and headquartered in Edmonton, Alberta, is engaged in the mechanical design and custom fabrication of steel tanks, vessels and process equipment. GLM derives a large part of its revenues by fabricating storage tanks or vessels for crude oil and refined petroleum products. It also designs and fabricates silos for solids handling systems in the coal, sand, and cement industries. With over 300 employees, GLM has production facilities in Edmonton and Grande Prairie, Alberta, and in Battleford, Saskatchewan.

Buy -
DESCRIPTION

Banyan Capital Partners is a generalist private equity firm that invests in middle-market companies located primarily in US and Canada. Banyan looks to invest in companies with $10 - $200 million in annual revenue and will consider both majority and minority situations. Banyan's target investment size is $3 to $20 million. Transaction situations can include succession, recapitalizations, public to private, spin-offs, buyouts, and growth financings. Banyan will not invest in biotech, real estate, or mining opportunities. Banyan Capital was formed in 1999 and is based in Vancouver.


DEAL STATS #
Overall 6 of 14
Sector (Utilities) 1 of 1
Type (Divestiture) 1 of 2
State (British Columbia) 2 of 4
Country (Canada) 3 of 9
Year (2006) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 Tartan Canada

Edmonton, Alberta, Canada

Founded in 1953, Tartan's principle services are plant and facility construction, pipeline construction, oilfield maintenance, fabrication and plant maintenance. Headquartered in Edmonton, Tartan also has an office in Redwater, Alberta and a development site in Gibbons, Alberta.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-21 DTI Dental Technologies

Dublin, California, United States

DTI provides cosmetic dentistry designing and manufacturing custom dental prosthetics including crowns, bridges and orthodontic appliances.

Sell -

Seller(S) 1

SELLER

Kinder Morgan

Houston, Texas, United States

website


Category Company
Founded 1936
Sector Energy Services and Equipment
Employees10,529
Revenue 16.6B USD (2021)
DESCRIPTION
Kinder Morgan's corporate headquarters in downtown Houston, Texas.
Kinder Morgan's corporate headquarters in downtown Houston, Texas.

Kinder Morgan is an energy infrastructure company. Kinder Morgan owns an interest in or operates pipelines and terminals. The Company's pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and its terminals transload and store petroleum products, ethanol and chemicals, and handle such products as coal, petroleum coke and steel. Kinder Morgan also produces and transports CO2, which is utilized for enhanced oil recovery projects in North America. Kinder Morgan was formed in 1936 and is based in Houston, Texas.


DEAL STATS #
Overall 1 of 5
Sector (Utilities) 1 of 1
Type (Divestiture) 1 of 4
State (British Columbia) 1 of 2
Country (Canada) 1 of 3
Year (2006) 1 of 1
Size (of disclosed) 2 of 3
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-17 Terasen International

Vancouver, British Columbia, Canada

Terasen Gas serves approximately 900,000 customers or 95% of gas users in British Columbia. The Company owns and operates 44,100 kilometres of natural gas distribution pipelines and 4,300 kilometres of natural gas transmission pipelines.

Sell $3.7B