Teachers' Private Capital acquires CFM Corp. for US$230 million

On April 12, 2005, Teachers' Private Capital, the private equity arm of Ontario Teachers' Pension Plan, completed its acquisition of CFM Corp., a leading integrated manufacturer of hearth and space heating products, barbecue and outdoor products in North America and the UK, in a transaction valued at approximately US$230 million.

The transaction was the result of a strategic review process initiated by CFM's board of directors in October 2004 and was carried out by way of amalgamation under the Ontario Business Corporations Act.

Prior to the completion of the transaction, Ontario Teachers' Pension Plan acquired all of CFM's outstanding US$125 million senior secured notes that were in default.

As part of the transaction, Teachers' Private Capital agreed to provide CFM with a US$25 million interim financing facility to assist CFM in meeting its working capital needs until the closing of the transaction.

The special committee of CFM's board of directors was represented by Fasken Martineau with a team that included Gar Emerson, Q.C., and Georges Dubé.