Montreal-based CAI Capital Partners & Co. II, L.P. last month led a group of investors in purchasing 12.35 million shares in MacDonald, Dettwiler and Associates Ltd., a provider of information and developer of information services, for $14 per share from a wholly-owned subsidiary of Orbital Sciences Corp. Other investors in the company include Ontario Teachers’ Pension Plan Board and British Columbia Investment Management Corp.
Terms of the transaction permit CAI Capital an exclusive option to purchase Orbital’s remaining holdings of 5.65 million shares in the company by May 31. Total shares of the company represent approximately 52% of the outstanding shares of the company.
Manfred Yu, a principal at CAI’s New York office, said CAI was interested in purchasing MDA back in 1994, but Orbital acquired it a year later. “Back in 1994, MDA’s primary business was being the world leader in building ground stations for satellites, but the business has expanded through internal growth and acquisitions since then,” Yu said.
In a statement Peter Restler, a partner at CAI, said, “…through the option, we have paved the way for a broadening of the shareholder base. We believe that there is significant long-term value yet to be created in MDA as supported by our additional investment, and we look forward to enhancing shareholder value with our new partners.”
Richmond, British Columbia-based MDA operates its business through two international networks of offices, subsidiaries and distributors.
The company operates its business through two principal groups. The information products group delivers land information products and services that encompass legal, asset and geographical information. The information systems group provides mission-critical information systems for monitoring activities on the planet, managing mobile assets and enabling mobile workforces.
CAI, with offices in Montreal and New York, generally invests in management buyouts, recapitalizations, restructurings and growth equity transactions in Canada.
Some companies in the firm’s portfolio include Los Angeles-based SafeGuard Health Enterprises Inc., provider of dental benefits; Toronto-based Livingston, a customs brokerage and trade services company in Canada that focuses on bilateral trade between Canada and the U.S.; and Ontario-based Country Style, one of Canada’s food franchisers, with food service operations in the donut and coffee segment.