Ontario Teachers’ acquires majority stake in GreenCollar from KKR
Ontario Teachers’ Pension Plan (“Ontario Teachers'”) and KKR, a global investment firm, announced a definitive agreement to transfer KKR and other shareholders’ stakes in GreenCollar to Ontario Teachers’. The financial terms of the transaction remain undisclosed. The deal, expected to close in the fourth quarter of 2023, will result in Ontario Teachers’ holding a significant majority stake in GreenCollar. James Schultz, the CEO and Co-Founder of GreenCollar, will continue leading the business while retaining a notable ownership share.
History and Significance of the Investment
Ontario Teachers’ first invested in GreenCollar in March 2022. This latest investment intensifies the relationship between the two organizations. The Ontario Teachers’ Natural Resources group, a subdivision of the Infrastructure and Natural Resources department, has significant experience in sectors like agriculture, aquaculture, and natural climate solutions. This makes them a suitable majority shareholder for GreenCollar, which is an Australian environmental markets platform.
Stakeholder Quotes on the Investment
Christopher Metrakos, Senior Managing Director, Natural Resources at Ontario Teachers’, mentioned, “We are pleased to increase our investment in GreenCollar and to continue supporting James and his team in their mission to restore and enhance natural capital in areas like biodiversity and water quality.” James Schultz, GreenCollar CEO, added, “We look forward to our deepening relationship and collaboration with Ontario Teachers’ and tapping into their knowledge and expertise in the natural resources sector.”
KKR’s Global Impact Strategy and Employee Ownership Plan
GreenCollar was initially a part of KKR’s Global Impact strategy, focusing on companies contributing to the United Nations Sustainable Development Goals. GreenCollar is a certified B corporation, specializing in environmental initiatives that support climate action. It is also the first Global Impact Fund investment to implement an employee ownership plan, benefiting all GreenCollar employees once the transaction is completed.
Transaction Advisors and Closing Details
The transaction remains subject to customary regulatory approvals. KKR was advised by Gilbert & Tobin and UBS, while Ontario Teachers’ received advisory services from Baker & Mackenzie and EY.