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Canadian M&A Market Recap: Week Ended June 1st

  • Posted By: Nicholas Ahwai-Chang, Oriel Cohen, Andrew Schmidt, Shelby Canvin, and Paris Aden

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Market Update

Fifty-eight Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 6.9% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.17 cents, ending the week at 77 cents. The TSX underperformed the S&P 500 by 0.5% in U.S. dollar terms. WTI Crude oil fell by 3.0%, ending the week at $65.81 per barrel.

According to The Lead Left, approximately $360 Billion USD worth of M&A loans have worked their way through the global retail market this year, representing a 5% increase compared to last year. The Americas have raised over $273 billion USD in new M&A loan assets through the first five months of 2018, representing a 43% increase compared to last year and 76% of the current deal flow.

Valitas Insights: A Primer on Market Cycles Part 2 – Where are we at in 2018?

This is Part 2 of a 2 part series. The series provides an in-depth explanation of the market cycle in the economy, how it works and where we are today. We will also provide some practical advice about what happens to businesses in a market correction and what you can do to board up the windows and prepare. Read our full article here to find out more. 

Canadian M&A Transactions[i]
 

Consumer Discretionary (Announced)
 

Alliance Growers to Acquire Spyder Vapes

Alliance Growers Corp. (CNSX:ACG), a Canadian company that develops and operates multiple cannabis botany centers in Canada, has agreed to acquire Spyder Vapes Inc., a Canadian company that distributes and retails e-cigarettes, vaporizers, e-juice, e-liquid, and smoking cessation accessories. Total transaction value is estimated to be $2.5 million.
 

Healthcare (Closed)
 

10673242 Canada has Acquired Enderlein Nurseries

10673242 Canada Inc., a Canadian company that produces medical cannabis, has acquired Enderlein Nurseries Ltd., a Canadian company that produces medical cannabis. Total transaction value is estimated to be $2.5 million.
 

Healthcare (Announced)
 

Relentless Resources to Acquire Grunewahl Organics

Relentless Resources Ltd. (TSXV:RRL), an oil and natural gas company that engages in the exploration, development, acquisition, and production of natural gas and medium to light gravity crude oil reserves in Alberta, has agreed to acquire Grunewahl Organics Inc., a Canadian company that focuses on the production and sale of medical marijuana products in Canada. Total transaction value is estimated to be $3.66 million.
 

Information Technology (Announced)
 

Mooncor Oil & Gas to Acquire Fox-Tek Canada

Mooncor Oil & Gas Corp. (TSXV:MOO), a Canadian company that engages in the acquisition, exploration, and evaluation of oil and gas properties in Canada and the United States, has agreed to acquire Fox-Tek Canada Inc., a Canadian company that engages in development, design, manufacture, and supply of systems using fiber optic sensors, related monitoring instruments, and software. Total transaction value is estimated to be $21.5 million.
 

LottoGopher Holdings to Acquire SMS-ENGINE

LottoGopher Holdings Inc. (CNSX:LOTO), a Canadian company that provides lottery messenger services in California, has agreed to acquire SMS-ENGINE, a Canadian company that provides a text-based gaming engine used in lottery, sports betting and sweepstakes. No transaction terms were released.
 

Information Technology (Closed)
 

SHEA Solutions has Acquired TGO Consulting

SHEA Solutions Inc., a Canadian company that develops business and consulting software which assists businesses to improve their performance, has acquired TGO Consulting Inc., a Canadian company that provides IT consulting and workflow management support services. No transaction terms were released.
 

ESW Capital has Acquired ResponseTek Networks

ESW Capital, LLC, a U.S. private equity and venture capital company that specializes in later stage, mature, turnaround, low growth, restructure, divestiture, Chapter 11, pre-ABC, and special situations investments, has acquired ResponseTek Networks Corp., a Canadian company that designs, develops, and deploys customer experience management software. No transaction terms were released.
 

Other (Announced)
 

North Montney LNG to Acquire LNG Canada

North Montney LNG Limited Partnership, a Canadian company that offers oil and gas exploration services, has agreed to acquire LNG Canada, a Canadian company that is proposing to design, build and operate an LNG export terminal in British Columbia. LNG Canada is a subsidiary of PetroChina, Shell Canada Energy, KOGAS Canada, and Diamond LNG Canada. No transaction terms were released.
 

Other (Closed)
 

Armstrong World Industries has Acquired Plasterform

Armstrong World Industries Inc. (NYSE:AWI), an American company that designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings worldwide, has acquired Plasterform Inc., a Canadian company that does architectural casting manufacturing. No transaction terms were released.
 

Coronet Metals has Acquired 1156222 B.C.

Coronet Metals Inc. (CNSX:CRF), a Canadian exploration stage company that acquires, explores for, and develops natural resources properties in the United States and Canada, has acquired 1156222 B.C. Ltd, a Canadian company. Total transaction value is estimated to be $3.8 million.
 

Global Hemp Group has Acquired Cash Crop Today Media

Global Hemp Group Inc. (CNSX:GHG), a Canadian company that engages in acquiring and/or joint venturing with industrial hemp industries, has acquired Cash Crop Today Media LLC, a Canadian global media company that focuses on the industrial hemp and cannabis sectors. Total transaction value is estimated to be $194 thousand.
 

Petal Solutions has Acquired Zone3W

Petal Solutions Inc., a Canadian company that offers PetalMD, a cloud-based application that enables scheduling, shift transfer, and secure messaging for healthcare professionals, has acquired Zone3W Inc., a Canadian company that provides web and mobile solutions for billing to physicians, commercial billing agencies, and integration partners. No transaction terms were released.
 

Iris Technologies has Acquired I-Mobileca

Iris Technologies Inc., a Canadian company that provides voice over Internet protocol services for residential and commercial customers, incumbent local exchange carriers, and competitive local exchange carriers in Canada and internationally, has acquired I-Mobileca Inc., a Canadian company. 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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