On July 6, 2007, companies formed and indirectly owned by Nautic Partners VI, LP completed the acquisition of the 67 per cent interest in CCD Limited Partnership held by Canada Cartage Diversified Income Fund (the Fund).
CCD, based in Mississauga, Ont., is a national provider of transportation services, specializing in outsourced, customer-located, dedicated trucking services. CCD also offers warehousing and distribution, general cartage, logistics and moving services and has operations in 12 cities across Canada. In addition to the 67 per cent of CCD held by the Fund, 33 per cent was held privately and by management and a portion of these interests were also acquired.
Pursuant to the acquisition, the publicly traded units of the Fund were redeemed for $11.30 in cash. The interests acquired from the other partners of CCD were also acquired for $11.30 per unit. The total acquisition cost for the transaction was approximately $140 million. Concurrently with the acquisition, new credit facilities were established with a syndicate of Canadian banks led by the Canadian Imperial Bank of Commerce.
Nautic is a private equity firm based in Rhode Island that focuses on investments in areas including business services, manufacturing, healthcare and communications.
Borden Ladner Gervais LLP's team included Paul Mingay, Frank Allen, Adam Segal, Terence Lui, Stefan Guttensohn and Alexandra Fraser (corporate/securities); Bruce Sinclair (tax); Bruce Fowler and Dan McNamara (banking); Evelyn Goldfarb, Alan Sless and Leonard Lee (real estate); Mike Fitzgibbon and Michelle Henry (labour); Sonia Mak and Amanda Darrach (pensions); Rick Coburn and Jason Aurini (environmental); Colleen Spring Zimmerman (intellectual property); Michael Smith (regulatory); and Maryann Besharat (privacy) as Canadian counsel for Nautic.
Kirkland & Ellis LLP acted as US counsel to Nautic on the transaction, with a team that included Gerald Nowak, Travis Nelson, Jared Jensen and Chad Keetch (corporate); Paul Patrow (tax) and Jim Anderson (banking). Torys LLP was counsel to CCD and the Fund, with a team that included James Scarlett, Aaron Emes, Andrew Prodanyk and Melissa Ewert (corporate); Corrado Cardarelli and Richard Johnson (tax); David Dell, Kim Kowalik and Renée Laliberté (real estate); Dennis Mahony and Michael Fortier (environmental); Christina Medland and Mitch Frazer (pensions and employment); Amanda Balasubramanian and Nadine Rockman (lending); Jay Holsten (competition); and Phil Mohtadi (Investment Canada).
Blake, Cassels & Graydon LLP acted as counsel to CIBC, with a team that included Michael Harquail, Aimee Yee, Corinne Lemire and Chris Marshall (financial services), Paul Tamaki (tax), and John Hutmacher (real estate). Thompson Dorfman Sweatman LLP acted as Manitoba counsel to CCD, with a team led by Michael Choiselat.