Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Toronto, agreed to purchase Doane Pet Care Co., Brentwood, Tenn., for C$1 billion (US$835.1 million) in cash, said Lee Fullerton, spokeswoman for the C$88 billion pension fund. The deal is expected to close in mid-November, subject to regulatory approval.
Teachers' Private Capital, which handles C$7.3 billion in assets, all for the pension fund, and Doane Pet Care are planning a recapitalization of the company, but details are still "being sorted out," Ms. Fullerton said. Proceeds from the deal will allow the company to retire outstanding preferred stock and reduce the amount of funded debt on its balance sheet.
JPMorgan Partners is the lead investor in parent company Doane Pet Care Enterprises Inc. JPMorgan Partners and one of its unnamed affiliates held 200,000 shares of Doane Pet Care Enterprises' 1.2 million senior preferred stock as of March 15, according to Doane's annual report. Brooke Harlow, spokeswoman for JPMorgan Partners, did not return a call by press time seeking comment.
JPMorgan Chase advised Doane Pet Care in the deal; Lehman Brothers assisted Teachers' Private Capital and is providing financing for the transaction.