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Canadian M&A Market Recap: Week Ended April 6th

  • Posted By: Daniel Borg, Ty Wilson, Ali Saleh, Joseph Scarfone, and Paris Aden

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Market Update

Sixty-Eight Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 12.5% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.76 cents, ending the week at 78 cents. The TSX outperformed the S&P 500 by 1.4% in U.S. dollar terms. WTI Crude oil fell by 4.3%, ending the week at $62.10 per barrel.

According to The Lead Left, global loan volume fell 15% year over year in 1Q18, totalling less than US$924bn. Japan, APAC (ex. Japan), EMEA, and the Americas all saw a decrease in deal count, with the Americas observing an 11% drop in regional issuance.

 

Canadian M&A Transactions[i]

Materials (Announced)

Fortytwo Metals to be Acquired

An undisclosed buyer has agreed to acquire Fortytwo Metals Inc., a Canadian company that was acquired by MX Gold Corp. (TSXV:MXL) in 2016. Fortytwo Metals Inc. owns and operates a molybdenum mining operation in Trout Lake, British Columbia. Total transaction value is estimated to be $3.0 million

Clairvest Group to Acquire Discovery Mining Services

Clairvest Group Inc. (TSX:CVG), a Canadian private equity firm, has agreed to acquire Discovery Mining Services Ltd., a Canadian mining service and expediting company. Total transaction value is estimated to be $5.0 million.

Materials (Closed)

Mueller Industries has Acquired Die-Mold Tool

Mueller Industries, Inc. (NYSE:MLI), a U.S.-based company that manufactures and sells copper, brass, aluminum, and plastic products worldwide, has acquired Die-Mold Tool Ltd., a Canadian company that designs and manufactures plastic injection molds. No transaction terms were released.

Industrials (Announced)

GMS to Acquire WSB Titan

GMS Inc. (NYSE:GMS), a U.S.-based company that distributes wallboards, suspended ceilings systems, and complementary interior construction products in North America, has agreed to acquire WSB Titan Inc., a TorQuest Partners, Inc. backed Canadian company that distributes building supplies. Total transaction value is estimated to be $802 million, implying a 9.2x EBITDA multiple and a 1.37x revenue multiple.

Clairvest Group to Acquire Great Slave Helicopters

Clairvest Group Inc. (TSX:CVG) has agreed to acquire Great Slave Helicopters Ltd., a Canadian company that operates a fleet of helicopters and offers transportation services. Total transaction value is estimated to be $12.3 million.

Industrials (Closed)

Timber Automation has Acquired VAB Solutions

Timber Automation LLC, a U.S.-based forestry equipment company, has acquired VAB Solutions Inc., a Canadian company that designs, manufactures, and sells vision instruments for the forest industry. No transaction terms were released.

Blue Wolf Capital Partners has Acquired The State Group

Blue Wolf Capital Partners LLC, a U.S.-based private equity firm, has acquired The State Group, Inc., a Canadian multi-trade contracting company that provides electrical and mechanical services in North America. No transaction terms were released.

HUB International has Acquired The Benefits Company

HUB International Ltd., an AlpInvest Partners B.V. and Hellman & Friedman LLC backed U.S.-based company that provides insurance brokerage services, has acquired The Benefits Company, Inc., a Canadian company that provides employee benefit consulting services. No transaction terms were released.

Granite Construction has Acquired Liqui-Force Services

Granite Construction Inc. (NYSE:GVA), a U.S.-based company that operates as a heavy civil contractor and a construction materials producer, has acquired Liqui-Force Services (Ontario) Inc., a company that provides mainline and lateral sewer rehabilitation services for municipalities in Canada and the United States. No transaction terms were released.

AXYZ International has Acquired WARDJet

AXYZ International Inc., a Canadian company that manufactures industrial CNC router systems and CNC knife systems, has acquired WARDJet Inc., a U.S.-based company that manufactures and supplies waterjet cutting machines and custom waterjet solutions to a variety of industries. No transaction terms were released.

BRC Trading has Acquired Allergen Control Group

BRC Trading Ltd., a U.K.-based company that does business as BRC Global Standards, provides safety and quality certification programs for manufacturing practices of food, packaging, storage and distribution of consumer products has acquired Allergen Control Group Inc., a Canadian company that provides gluten-free certification programs (GFCP) for gluten-free and allergen food safety compliance and marketing. No transaction terms were released.

Consumer Discretionary (Closed)

Blue Point Capital Partners has Acquired Spector & Co. 

Blue Point Capital Partners, a U.S.-based private equity firm, has acquired Spector & Co. Inc., a Canadian company that supplies writing instruments, journals and other business gifts in North America. No transaction terms were released.

InstarAGF Asset Management has Acquired AMPORTS

InstarAGF Asset Management Inc., a Canadian investment firm specializing in infrastructure investments, has acquired AMPORTS, Inc. a U.S.-based company that provides automotive processing services in North America. No transaction terms were released.

Owen & Company has Acquired Kingsdown

Owen & Company Ltd., a Canadian company that produces and markets mattresses and bedding products, has acquired Kingsdown, Inc., a U.S.-based company that designs and manufactures luxury mattresses. No transaction terms were released.

Virgin Hotels Limited, Fengate Capital Management, and Juniper Capital Partners have Acquired Hard Rock Hotel Holdings

Virgin Hotels Ltd., Fengate Capital Management Ltd, and Juniper Capital Partners, have acquired Hard Rock Hotel Holdings, LLC, a U.S.-based company that does business as Hard Rock Hotel & Casino in Las Vegas. No transaction terms were released.

Healthcare (Announced)

Cannabis Wheaton Income to Acquire Dosecann

Cannabis Wheaton Income Corp. (TSXV:CBW), a Canadian cannabis streaming company, has agreed to acquire Dosecann Inc., a Canadian company that provides pharmaceutical research and development for medical cannabis products. Total transaction value is estimated to be $38.0 million.

Open Source Health to Acquire Weekend Unlimited

Open Source Health Inc. (CNSX:OSH), a Canadian company that offers a cloud-based integrated framework and tools that enable women to pro-actively manage their health, has agreed to acquire Weekend Unlimited Inc., a Canadian company that cultivates and produces medical marijuana. No transaction terms were released.

Ravenquest Biomed to Acquire Western AgriPharma

Ravenquest Biomed Inc. (CNSX:RQB), a Canadian cannabis company that focuses on cannabis production, management services and consulting, and specialized research has agreed to acquire Western AgriPharma Ltd. Western AgriPharma Ltd. is a Canadian company focuses on cannabis-related management and consulting services, and specialized research and development activities. No transaction terms were released.

Namaste Technologies to Acquire 2624078 Ontario

Namaste Technologies Inc. (CNSX:N), a Canadian company that develops, manufactures, and distributes vaporizers, pipes, papers, and other accessories for aromatherapy purposes, has agreed to acquire 2624078 Ontario Inc., a company that focuses on research and development of medical cannabis extracts. No transaction terms were released.

Healthcare (Closed)

Rubicon Pharmacies Canada has Acquired Amenity Health Care

Rubicon Pharmacies Canada Inc., a company that owns and operates 67 pharmacies across Alberta, Manitoba, an Saskatchewan, has acquired Amenity Health Care LP, a Canadian company that owns and operates 34 pharmacies across Alberta, Manitoba, Saskatchewan, and British Columbia. No transaction terms were released.

Tropichem Research Labs has Acquired TetraGenx

Tropichem Research Labs, Inc., a Northstar Capital, LLC and Thompson Street Capital Partners backed U.S.-based company that provides contract manufacturing services for auto care, household, industrial, and pet care, has acquired TetraGenx, Inc., a Canadian company that provides development and consulting services to the pharmaceutical industry in the North and Central American markets. No transaction terms were released.

Financials (Announced)

McFarlan Rowlands Insurance Brokers to Acquire D.A. Kurt Insurance Brokers & Financial Services

McFarlan Rowlands Insurance Brokers Inc., a Canadian company that provides insurance brokerage services, has agreed to acquire D.A. Kurt Insurance Brokers Ltd & Financial Services, a Canadian insurance company. No transaction terms were released.

Financials (Closed)

HUB International has Acquired ES3 Insurance Services

HUB International Ltd. has acquired ES3 Insurance Services Ltd., a Canadian insurance and benefits company that also provides employee benefits and pension consulting. No transaction terms were released.

Information Technology (Announced)

Quorum Business Solutions to Acquire Entero

Quorum Business Solutions, Inc., a U.S.-based company that develops software solutions and provides services to manage operational, administrative, financial, and transactional business processes for oil and gas, renewable energy, pipeline, and utility industries, has agreed to acquire Entero Corporation, a Canadian company that provides software solutions for the energy industry. No transaction terms were released.

Recruit Holdings to Acquire Workopolis.com

Recruit Holdings Co., Ltd. (TSE:6098), an international human resource services company based in Japan and the parent company of Indeed, has agreed to acquire workopolis.com Ltd., a Canadian company that operates an online job site that helps job seekers find jobs, and connects employers with candidates in Canada.  No transaction terms were released.

Campus Labs to Acquire Chalk & Wire Learning Assessment

Campus Labs, LLC, a U.S.-based company that provides software for assessment in higher education, has agreed to acquire Chalk & Wire Learning Assessment Inc., a Canadian company that develops tools and processes to support programs and universities in activities around the assessment of student learning. No transaction terms were released.

Information Technology (Closed)

Converge Technology Partners has Acquired Key Information Systems

Converge Technology Partners Inc., a Canadian company that develops a national platform of regionally focused IT infrastructure firms in the United States and Canada, has acquired Key Information Systems, Inc., a U.S.-based company that provides information technology systems integration, computing, storage, and networking solutions through infrastructure-as-a-service (IaaS) module. No transaction terms were released.

Groupe Atallah has Acquired Polyvore

Groupe Atallah Inc., a Canadian company that runs SSENSE, has acquired Polyvore, Inc., a U.S.-based company that develops and operates an online community that connects brands with influencers. No transaction terms were released.

KPMG has Acquired Egyde

KPMG LLP (Canada) has acquired Egyde, a Canadian cyber security firm. No transaction terms were released.

Utilities (Closed)

ENGIE North America and Axium Infrastructure have Acquired MATEP

ENGIE North America Inc., a U.S.-based energy business management firm and Axium Infrastructure Inc., a Canadian private equity firm have acquired MATEP LLC, a total energy facility and micro-grid, that produces and supplies electricity, steam, and chilled water to clinical, research, and teaching institutions in the Longwood Medical and Academic Area (LMA). No transaction terms were released.

Real Estate (Closed)

Avison Young has Acquired Alcor Commercial Realty

Avison Young Inc., a Canadian company that provides commercial real estate solutions and services to owners and occupiers of office, retail, industrial, and multi-family properties, has acquired Alcor Commercial Realty Inc., a Canadian company that provides commercial real estate management services including property management, acquisition due diligence, acquisition consulting, and construction, and project management. No transaction terms were released.

Other (Announced)

Vision 2000 Travel Group to Acquire Uniglobe One Travel

Vision 2000 Travel Group, Inc., a Canadian company that provides customized travel programs for clients in Canada, has agreed to acquire Uniglobe One Travel Inc., a Canadian company that offers services and products to help manage corporate travel spending. No transaction terms were released.

MNP to Acquire Craig Keen Despatie Markell

MNP LLP, a Canadian accounting and consulting firm, has agreed to acquire Craig Keen Despatie Markell (CKDM) LLP, a Canadian accounting firm. No transaction terms were released.

Other (Closed)

SPI Health and Safety in has Acquired Treen Safe

SPI Health and Safety Inc., a Canadian company that is engaged in the marketing and distribution of occupational health and safety products, has acquired Treen Safety (Worksafe) Inc., a Canadian distributor dedicated to occupational health and safety. No transaction terms were released.

TFI International has Acquired Normandin Transit

TFI International Inc. (TSX:TFII), a Canadian company that through its subsidiaries, provides transportation and logistics services in North America, has acquired Normandin Transit Inc., a Canadian company that operates through Package and Courier, Less-Than-Truckload, Truckload, and Logistics segments. No transaction terms were released.

Bennett Jones to Acquire McCullough O'Connor Irwin

Bennett Jones LLP, a Canadian company that offers legal advisory services, has agreed to acquire McCullough O'Connor Irwin LLP, a Canadian company that provides legal advisory services. No transaction terms were released.

Richardson International has Acquired Eagle Agro Services

Richardson International Limited, a Canadian company that operates in agricultural and food processing businesses, has acquired Eagle Agro Services Ltd., a Canadian full-service, retail crop inputs location. No transaction terms were released.


[i] Includes all M&A transactions in which either the target or buyer is a Canadian private company.

 

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