OMERS to invest US$400 Million for an indirect 5% stake in Maple Leaf Sports & Entertainment (MLSE)
Larry Tanenbaum selling OMERS a 20% stake in Kilmer Sports Inc.
Toronto, [November 6, 2023] – OMERS, one of Canada’s largest defined benefit pension plans, is acquiring a 5% indirect stake in Maple Leaf Sports & Entertainment (“MLSE”) for US$400 million (~C$546.8 million) through a 20% direct stake in Kilmer Sports Inc. (“KSI”), owned by MLSE Chair Larry Tanenbaum.
“As an owner of MLSE, I’ve always seen myself as a steward of a public trust, working in service to the fans and the public to build Canada’s most iconic sports teams and win championships,” said Larry Tanenbaum, Chair of MLSE. “Now with this investment by OMERS, I’m thrilled to be sharing this public trust with over 600,000 hard-working Ontarians. Today is a good day for the future of MLSE.”
KSI currently owns 25% of MLSE. KSI is owned by Larry Tanenbaum who is also Chairman and CEO of Kilmer Group. In 1998, Tanenbaum was instrumental in the formation of MLSE, the pre-eminent leader in delivering top quality sports and entertainment experiences. It is the parent company of sports teams including the National Hockey League’s Toronto Maple Leafs, the National Basketball Association’s Toronto Raptors, Major League Soccer’s Toronto FC, and the Canadian Football League’s Toronto Argonauts and a number of development teams.
Blake Hutcheson, President and CEO of OMERS, said “This is an exciting and unique opportunity for OMERS members in Ontario communities to be connected to these iconic sports teams in their own backyard. As an investor on their behalf, we actively seek out investment opportunities of the highest quality, that are fortified by trusted partnerships and that offer the potential of significant long-term upside. This one happens to be here in Canada and Ontario which is also really important, and meaningful to OMERS.”
Upon closing, Tanenbaum will retain an 80% stake in KSI and KSI maintains its 25% stake in MLSE. Tanenbaum will remain Chair of MLSE, Governor and member of the Executive Committee of the National Hockey League and Major League Soccer, and Chairman of the Board of the National Basketball Association. OMERS will be a financial investor and will not participate in operational decisions of MLSE or any of its teams.
About Kilmer Group
Kilmer Group is a multi-generational platform with a long history in business development and investment focused on three verticals: Infrastructure & Real Estate, Sports & Media, and Private Equity, which includes a majority ownership in Coca-Cola Canada Bottling Limited.
About OMERS
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with C$127.4 billion in net assets as at June 30, 2023. OMERS is a jointly-sponsored pension plan, with 1,000 participating employers ranging from large cities to local agencies, and 600,000 active, deferred, and retired members. OMERS members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. Contributions to the Plan are funded equally by members and employers. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers and originating and managing a diversified portfolio of high-quality investments in public markets, private equity, infrastructure, and real estate.
Contact:
Courtney Glen, Kilmer Group
cglen@kilmergroup.com
Lori McLeod, OMERS
lmcleod@omers.com