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Canadian Market Recap: Week Ended March 2nd

  • Posted By: Chris Angelatos, Miranda Li, Steven McMaster, Parsa Pouyan, Melissa Shang

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Market Update

Forty-five Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 15.8% lower than the comparable period in 2017. The Canadian dollar depreciated by 1.38 cents, ending the week at 78 cents. The TSX underperformed the S&P 500 by 1.4% in U.S. dollar terms. WTI Crude oil fell by 3.7%, ending the week at $60.78 per barrel.

According to the Lead Left, white-hot debt markets have propped up valuations across the middle market and provided significant tailwinds for private equity-backed acquisitions. High leverage multiples of EBITDA of over 6x, however, are catching the attention of regulators and some investors have had to cap their debt commitments. 

 

Canadian M&A Transactions[i]

Materials (Announced)

Berkwood Resources to Acquire 1137794 B.C.

Berkwood Resources Ltd. (TSXV:BKR), a Canadian company that engages in the acquisition, exploration, and development of natural resource properties, has agreed to acquire 1137794 B.C. Ltd., a Canadian company that owns and operates graphite reserves. Total transaction value is estimated to be $460 thousand.

Max Resource to Acquire Copperbelt Minerals

Max Resource Corp. (TSXV:MXR), a Canadian company that engages in the acquisition and exploration of mineral properties in North America, has agreed to acquire Copperbelt Minerals Corp., a Canadian company that engages in the mining of copper. Total transaction value is estimated to be $2.96 million.

Industrials (Announced)

Héroux-Devtek to Acquire Beaver Aerospace & Defense

Héroux-Devtek Inc. (TSX:HRX), a Canadian company that is a leading international manufacturer of aerospace products, has agreed to acquire Beaver Aerospace & Defense, Inc., a U.S. company that manufactures actuation solutions for commercial and military aerospace and defense industries. The target was a subsidiary of Phillips Service Industries, Inc. Total transaction value is estimated to be $23.5 million, reflecting a 0.78x revenue multiple.

Calmont Equipment to Acquire Construction Dealership Group of Cervus Equipment

Calmont Equipment Ltd., a Canadian vehicle leasing company that offers services across North America, has agreed to acquire the Construction Dealership Group of Cervus Equipment Corporation, a Canadian company that comprises of construction equipment dealerships. No transaction terms were released.

CEMATRIX to Acquire MixOnSite USA

CEMATRIX Corporation (TSXV:CVX), a Canadian company that manufactures and supplies cellular concrete products in North America, has agreed to acquire MixOnSite USA, Inc., a U.S. company that supplies low density foam concrete and provides technical mix design. Total transaction value is estimated to be $5 million.

Industrials (Closed)

Logistec has Acquired Gulf Stream Marine

Logistec Corporation (TSX:LGT.B), a Canadian company that provides cargo handling and other services to marine, and industrial customers in North America, has acquired Gulf Stream Marine, Inc., a CapStreet Group backed U.S. company that provides cargo handling, stevedoring, and terminal operations services in the Gulf Coast region. Total transaction value is estimated to be $65.7 million, reflecting an 8.0x EBITDA multiple and a 0.96x revenue multiple.

Consumer Discretionary (Closed)

Exchange Income has Acquired CANLink Global

Exchange Income Corporation (TSX:EIF), a Canadian company that engages in the manufacturing of aerospace and aviation services and equipment worldwide, has acquired CANLink Global Inc., a Canadian company that offers a pilot training program. Total transaction value is estimated to be $43.4 million, reflecting a 7.2x EBITDA multiple.

Consumer Staples (Announced)

Valens Groworks to Acquire R Gold Venture

Valens Groworks Corp. (CNSX:VGW), a Canadian biotechnology company that engages in the scientific research of phytopharmaceutical material and produces cannabis related products, has agreed to acquire R Gold Venture Inc., a Canadian company that operates medical cannabis, lifestyle consumables, and hard goods retail stores. Total transaction value is estimated to be $1.47 million.

Healthcare (Announced)

Abattis Bioceuticals to Acquire Gabriola Green Farms

Abattis Bioceuticals Corp. (OTCPK:ATTB.F), a Canadian biotechnology company that aggregates, integrates, and invests in cannabis technologies and biotechnology services in Canada, has agreed to acquire Gabriola Green Farms Inc, a Canadian company that produces cannabis for medical use purposes. Total transaction value is estimated to be $24.4 million.

Extendicare to Acquire Lynde Creek Retirement Community

Extendicare Inc. (TSX:EXE), a Canadian company that provides senior care services in Canada, has agreed to acquire Lynde Creek Retirement Community, a Canadian company that owns and operates retirement and assisted living homes. Total transaction value is estimated to be $27.2 million.

Healthcare (Closed)

Nuuvera has Acquired ASG Pharma

Nuuvera Inc. (TSXV:NUU), a Canadian company that produces medicinal marijuana products, has acquired ASG Pharma Ltd, a Maltese company that produces and distributes oil-based medical cannabis products. No transaction terms were released.

Financials (Closed)

Colliers International Group has Acquired IREA Corporate Finance

Colliers International Group Inc. (TSX:CIGI), a Canadian company that provides commercial real estate services, has acquired IREA Corporate Finance, S.L., a leading Spanish financial and strategic advisory firm. No transaction terms were released.

Information Technology (Announced)

AcuityAds Holdings to Acquire ADman Interactive

AcuityAds Holdings Inc. (TSXV:AT), a Canadian company that provides digital media solutions, has agreed to acquire ADman Interactive S.L., an Inveready Technology Investment Group backed Spanish company that develops and provides video SSP solutions for desktops and mobiles. Total transaction value is estimated to be $16.7 million.

Information Technology (Closed)

RESAAS Services has Acquired Real-Block

RESAAS Services Inc. (OTCPK:RSAS.F), a Canadian company that develops cloud-based social business platforms for the real estate services industry, has acquired Real-Block Inc., a Canadian company that owns and operates a real estate blockchain application. Total transaction value is estimated to be $1.19 million.

Lucara Diamond has Acquired Clara Diamond Solutions

Lucara Diamond Corp. (TSX:LUC), a Canadian mining company with diamond properties in Africa, has acquired Clara Diamond Solutions Corporation, a Canadian company that offers a digital platform that uses analytics along with cloud and blockchain technologies to transform the sale process of rough diamonds. Total transaction value is estimated to be $44.6 million.

Other (Announced)

CryptoGlobal to Acquire Blockchain Dynamics

CryptoGlobal Corp. (TSXV:CPTO), a Canadian company that operates in the blockchain and financial technology industry, has agreed to acquire Blockchain Dynamics Inc., a Canadian company with a full service platform offering security, trading, and staking across a diversified base of cryptocurrencies. Total transaction value is estimated to be $14.8 million.

Point Loma Resources and Salt Bush Energy to Acquire Oil and Gas Assets In The West Central Area Of Alberta

Point Loma Resources Ltd. (TSXV:PLX), and Salt Bush Energy Ltd., Canadian oil and gas exploration companies, have agreed to acquire oil and gas assets in the west central area of Alberta. No transaction terms were released.

Park Lawn to Acquire CMS Mid-Atlantic

Park Lawn Corporation (TSX:PLC), a Canadian company that provides goods and services associated with the disposition and memorialization of remains in North America, has agreed to acquire CMS Mid-Atlantic, Inc., a U.S. company that operates, manages, and provides financial services for cemeteries. Total transaction value is estimated to be $50 million.

Global Excel Management to Acquire Active Claims Management

Global Excel Management Inc., a Canadian company that provides healthcare risk management solutions, has agreed to acquire Active Claims Management Inc, a Canadian company that provides expertise in the management and administration of health and travel insurance worldwide. No transaction terms were released.

Other (Closed)

InsurEye has Acquired TheDirt.co

InsurEye, Inc., a Canadian company that operates an online insurance review platform for home, auto, and life insurance, has acquired TheDirt.co, a Canadian company that serves as a condo review platform.  No transaction terms were released.

Benevity has Acquired Trust CSR

Benevity, Inc., a General Atlantic, JMI Equity and Zinc Ventures backed Canadian company that provides employee engagement software, has acquired Trust CSR Limited, a U.K. company that provides social responsibility consultancy. 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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