From a relatively small road paving operation in the early 1960's KVN grew internally and through acquisitions to include road
building and paving, ready-mix concrete, commercial aggregate, and heavy construction operations. By the early 1980's Kilmer's
construction operations included Canada's largest national asphalt paving company, one of the country's largest aggregate
producers, Metro Toronto's largest independent ready-mix operator, and KVN was a significant international contractor of
subways, light rail transitways, dams, tunnels and bridges. Kilmer diversified its investment portfolio into non-construction
related activities by entering into the communications, electronics manufacturing, publishing, sport and entertainment, and
charitable gaming sectors as well as private mid-market infrastructure projects.
In December 2000 KVN merged its $600 million (annual revenues) asphalt paving and commercial aggregates operations with
Lafarge Corporation, one of North America's largest producers of cement, ready-mix concrete and aggregates in a transaction
valued at $425 million. Kilmer remained a major shareholder of Lafarge North America Inc. (Lafarge) until Lafarge was taken
private in 2006 by its European parent, Lafarge S.A., a world leader in building materials and the world's largest cement
producer.
In the late 1970's, KVN was an early investor in CUC Broadcasting Limited which, at the time of its sale to Shaw Cable in 1994
for $435 million, was the fifth largest cable television operation in Canada. CUC was a major participant in the United
Kingdom cable television market and maintained other operations including paging, publishing, and satellite and radio
broadcasting.
In the mid 1990's the company expanded its investment activities into the electronics manufacturing sector. Kilmer's principal
electronics investments have included: an international electronics assembly company with operations in Canada, the United
States, Mexico and Europe; a North American manufacturer of circuit boards; a North American manufacturer of electronic
packages specializing in thermal management solutions; and a North American provider of supply chain management software and
the first company to create real-time e-business collaboration among the supplier, manufacturer and customer.
In 1996 Kilmer entered the sports and entertainment sector by acquiring a significant interest in Maple Leaf Sports &
Entertainment Ltd. which owns the Toronto Maple Leafs of the National Hockey League (NHL), the Toronto Raptors of the National
Basketball Association (NBA), the Toronto FC of Major League Soccer (MLS) and the Air Canada Centre. Kilmer also has
investments in sports media and production through its investment in Insight Sports Ltd. Insight is a Canadian company
specializing in the production and distribution of sports programming, as well as being a founding partner of the NHL Network,
a new digital TV channel formed in partnership with the National Hockey League. Insight also launched the World Fishing
Network and GOLTV (soccer) in the fall of 2005 and owns the Canadian franchise for Major League Gaming (video gaming).
To capitalize on its extensive experience in private equity investing and the relationships developed with several of Canada's
major financial institutions and pension funds in 2001 Kilmer formed its first private equity fund (the "Kilmer Capital
Fund"). The objective was to raise $100 million to invest in small and mid-market companies seeking financing for expansion,
acquisitions, management buy-outs, leveraged buyouts, restructurings, recapitalizations and privatizations. The first Fund
(Fund I) raised and invested approximately $115 million. It is run by experienced investors and business operators dedicated
to building preeminent companies in partnership with management. Fund I has completed several investments including Give and
Go Prepared Foods, York Uniforms (now Unisync), Vansco Electronics, McGregor Industries Inc., Tribal Sportswear and Hydropool
Hot Tubs (www.kilmercapital.com).
Kilmer raised over $200 million for Fund II and has invested approximately $70 million in two investments: Algorithme Pharma
Inc. and Coalision Inc.
As well as sponsoring the Kilmer Capital funds, KVN has been a significant co-investor to date in two of the above noted
acquisitions, Give & Go and Vansco.
Fostered by the historical experience it has had building roads, bridges, dams, tunnels, transit guideways, subways, and
manufacturing concrete, aggregates, asphalt and other construction materials Kilmer continues to maintain a focus on the
infrastructure sector. Current activities include the construction and operation of a customs examination facility (CEF),
Quickload CEF Inc., in the new container port of Prince Rupert, British Columbia. CEFs are examination facilities housing
large x-ray systems and other equipment to enable rapid physical examination of selected container consignments. They assist
Customs to detect prohibited goods, including illicit drugs, illegal firearms and other harmful goods as well as assisting in
the verification of compliance with import and export requirements. In 2004 Kilmer partnered with Corpfinance International
Ltd. in an $80 million infrastructure fund, CFI Infrastructure Opportunities Fund, to invest in a diversified portfolio of
private mid-market infrastructure projects including power generation plants, water and waste treatment plants and other
infrastructure projects within the public sector and private industry across Canada.
In 2007/2008 Kilmer completed a fund raising in the amount of $92 million on its Kilmer Brownfield Equity Fund (KBEF) which is
the first private equity fund in Canada dedicated to the redevelopment of "brownfields" in Canada. "Brownfields" are
abandoned, idled, or underused industrial and commercial facilities where expansion or redevelopment is complicated by real or
perceived environmental contamination.
In 2003 Kilmer entered the charitable gaming industry with the acquisition of Penetanguishene-Huronia Bingo (PHB). PHB was
founded in 1994 and has since grown from a single bingo centre located in Penetanguishene, Ontario, to 6 locations across
Ontario. The bingo centres represent an important entertainment and fundraising outlet for each community. PHB has raised tens
of millions of dollars for local municipal charities. In June 2004 PHB joined Bingo Country Holdings Limited in creating
Boardwalk Gaming and Entertainment Inc. (Boardwalk). Boardwalk and its partners are one of the largest owners of charitable
gaming centres in North America with operations throughout Ontario and British Columbia.
KILMER GROUP
Scotia Plaza, Suite 2700, 40 King Street West, Toronto, Ontario M5H 3Y2
Telephone: (416) 635-6100 Fax: (416) 635-7697
Copyright © 2007-2009 The Kilmer Group. All rights reserved. proudly hosted & maintained by montanapublishing.com