Private equity firm eyes Canadian manufacturer for $45 million

By Catherine Kavanaugh
Staff Reporter

Published: November 20, 2013 6:34 pm ET
Updated: November 20, 2013 6:35 pm ET

Related to this story

Topics Construction, Mergers & Acquisitions, Pipe/Profile/Tubing, Extrusion

Private investment firm Clearview Capital LLC is getting close to acquiring Novik Inc., a Quebec City-based manufacturer of polymer exterior siding, roof coverings and accessories, for about $45 million.

Novik officials announced Nov. 18 that they signed a non-binding letter of intent with the Connecticut-based firm, which has a track record of investing in and developing mid-sized North American companies through partnerships with management.

Novik sells building products to the residential and commercial construction industry. Clearview co-managing partner James G. Anderson sees potential for growth in Canada and the United States.

“Our goal is to partner with Novik’s talented management team to invest in continued expansion in Quebec and in further penetration of the United States market,” Anderson said in a statement. “We strongly believe that our access to capital and extensive experience and relationships at all levels of the building products industry will allow us to accelerate the company’s growth for the benefit of all the company’s stakeholders.”

Clearview plans to acquire all of the issued and outstanding shares of Novik. The firm proposed a cash consideration of 85 cents per share and the assumption of certain debt. The parties have 20 business days to negotiate an agreement with an option to extend the period of exclusivity period by 10 days. Before the transaction closes, it will be subject to court and shareholder approvals.

In the meantime, Novik’s Board of Directors can still consider unsolicited “superior” proposals but Clearview has the right to match the offers. If the letter of intent is terminated, Novik must pay Clearview $1.8 million.

Michael Gaudreau, Novik’s CEO and board chairman, also signed an irrevocable lock-up agreement with Clearview and has stated he will vote to approve the transaction and vote against any alternative acquisition proposals.

Gaudreau is a major shareholder who maintains the acquisition by Clearview will benefit all parties, including Novik employees and customers. He pointed out that a special committee comprised of the board’s three independent directors and the company’s financial advisors “considered many potential alternatives” before announcing about the pending acquisition.


Comments

Private equity firm eyes Canadian manufacturer for $45 million

By Catherine Kavanaugh
Staff Reporter

Published: November 20, 2013 6:34 pm ET
Updated: November 20, 2013 6:35 pm ET

Post Your Comments


Back to story


More stories

Image

Plastic products win Best of IBS awards

January 30, 2015 1:36 pm ET

LAS VEGAS — A year ago, inventor Jeremy Smith of Utah took his idea for an electrical outlet cover plate with LED lights on the bottom edge to...    More

Image

French investment firm buys Alabama-based CSP Technologies

January 30, 2015 1:10 pm ET

A French investment firm has finalized a deal to buy CSP Technologies Inc., an Auburn, Ala., company that makes specialty plastics packaging.    More

Image

Lubrizol buys Brazil-based coatings technology manufacturer

January 30, 2015 11:50 am ET

Specialty chemicals company Lubrizol Corp. of Wickliffe, Ohio, said it has acquired a Brazilian company that makes coatings technology for products...    More

Image

LG Hausys pulls out of Russian PVC profile market

January 30, 2015 11:17 am ET

LG Hausys Ltd., the building and decorative materials offshoot of South Korean giant LG Chemical Ltd., is pulling out of PVC window profile...    More

Image

Lund adds to aftermarket auto products portfolio with buy of Bushwacker

January 29, 2015 2:49 pm ET

Lund International Inc. has expanded its portfolio of plastic aftermarket vehicle accessories by acquiring Bushwacker Inc.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events