A Bay Street sign seen in 2013.Mark Blinch/Reuters
DEAL OF THE DAY
Element Financial to split into two
Canada's Element Financial Corp. said it will split its fleet management business and its vendor and commercial financing business, creating two publicly traded companies.
The move, which comes after a strategic review, will result in Element Fleet Management operating the company's $19.5-billion fleet management operations, Element Financial said on Tuesday. Story
Element decision to split swayed by major investors
Element Financial Corp. says its plans to shake up its business were influenced by long-time investors that didn't want a chunk of the company to be sold.
The Toronto-based fleet management and equipment financing business said Tuesday that it will soon become two publicly traded companies. Element Fleet Management will be a $19.5-billion international business with a fast-growing presence in North America. Element Commercial Asset Management will have $7-billion in owned and managed assets and will invest alongside institutional partners.
The move follows a big year for Element that included the $8.6-billion acquisition of General Electric's fleet business and a subsequent strategic review. Element thinks investors will better appreciate the larger fleet management side of Element's business without the distraction of the commercial financing side. Story
INVESTMENT BANKING
Raymond James hires banker for Bay Street's hottest sector
To snag deal flow in Bay Street's hottest sector, Raymond James Financial has hired a veteran investment banker to cover power and utilities.
The dealer, which targets the mid-market, hired Jim Tower to run its new power and infrastructure investment banking team. Until 2013, Mr. Tower ran a similar group at BMO Nesbitt Burns.
Raymond James has quietly kept hiring despite the downturn for many rival independent dealers. In November, the firm hired Glenn Gatcliffe to cover the consumer, agriculture and manufacturing sectors. He also used to work for BMO. Additional hires have included Craig McDougall as head of mergers and acquisitions and Sean Martin as head of financial institutions. Story
IN CASE YOU MISSED IT
'Supercoach' out to build startup brands
After Bell Canada bought out Virgin Group's share of Virgin Mobile in 2009, the telecom upstart's chief executive officer Andrew Black turned to Virgin's billionaire founder Richard Branson for career advice. "He said, 'You're really good at starting companies,'" recalls Mr. Black, who had previously led Lego's Americas business and held senior roles at Nike and Dr Pepper/Seven Up. "'But don't do one, do three or four a year. That's what I used to do.'"
Mr. Black, 53, has parlayed that advice into a growth capital firm with a different bent than typical tech-focused venture capital outfits. His Toronto-based BrandProject, which raised $12-million from investors in 2013, has financed several consumer brand startups in Canada and the United States, some with no tech angle at all. He's backed a firm that home-delivers gourmet, ready-to-prepare meals (Chef's Plate) and an online fashion content company (the Coveteur). One makes power drinks (Rumble), another caffeinated chocolate (Awake Chocolate), and Owlet produces "smart" baby booties that measure an infant's heart rate. Story
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Niall McGee