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Canadian Market Recap: Week Ended March 9

  • Posted By: Andrew Schmidt, Daniel Borg, Topher Abt, Joseph Scarfone, Hamzah Rizvi, and Paris Aden

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  • Comments: 0

 

Market Update

72 Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 11.7% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.40 cents, ending the week at 78 cents. The TSX underperformed the S&P 500 by 1.7% in U.S. dollar terms. WTI Crude oil rose by 1.5%, ending the week at $61.69 per barrel.

According to The Lead Left, thus far in 2018 the average purchase price and purchase price multiples from large corporate LBO deals have seen an increase compared to last year. In the large corporate market, the average purchase price for an LBO deal is US$3.0 billion compared to US$1.9 billion in 2017.

 

Valitas Insights: Is Canada’s Future Hanging in the Ballads? Four Trends to Watch in 2018

We recently sat down with the Chief Economist of UBS Bank (Canada), Pierre Ouimet, to discuss the various economic challenges facing Canadians. Between NAFTA negotiations, U.S. tax reform, and an uncertain regulatory environment in Canada's oil & gas industry, Canadian business owners have a lot riding on the year ahead.

Read our full article to learn more.

 

Valitas Update

Valitas is excited to be a partner for the Business Transitions Forum, Canada’s largest exit strategy conference for business owners, happening May 1, 2018.

Early Bird Registration Deadline is April 3, 2018.  Use code VALT1825 to get an additional 25% off the posted rate.

Paris Aden, Partner and Co-founder of Valitas Capital Partners is moderating a panel discussion at the Business Transitions Forum Program in Toronto on May 1st, 2018. The panelists include some of Canada’s leading M&A professionals.  Find out more about the panelists and the topic here.

 

Valitas Hiring

We are hiring an Office Manager! If you know of anyone who is a "doer" and is looking for a unique opportunity to join a rapidly growing and entrepreneurial investment banking firm, please direct them to this link.

We are also hiring an Investment Banking Coverage Associate! If the thought of bringing in 100-million-dollar M&A and financing deals makes your heart skip a beat with excitement, this is the role you have been looking for. Welcome to the “big leagues” of sales. If you know of anyone who fits this description please direct them to this link.

Finally, we are hiring for our Analyst Development Program! We are seeking motivated, entrepreneurial, and well-rounded first, second, or third year students in leading university programs to support our ongoing expansion on a part-time basis on-site or remotely for four-month terms starting in May and September. If you know anyone who may be interested, please direct them to this link.

 

And in other news…

This excellent International Women’s Day-inspired article from Firmex looks at the success stories of a few young women working in corporate finance.

 

Canadian M&A Transactions[i]

Industrials (Announced)

Global UAV Technologies to Acquire Aerial Imaging Resources

Global UAV Technologies Ltd. (CNSX: UAV), a Canadian company that provides unmanned aerial vehicle (UAV) surveying services, has agreed to acquire Aerial Imaging Resources Inc., a Canadian company that provides UAV based geophysics surveying services in the mining industry. Total transaction value is estimated to be $2.4 million.

Industrials (Closed)

Newterra has Acquired Aeration Industries International

Newterra Ltd., a XPV Water Partners, Angeleno Group LLC, RobecoSAM Private Equity, Black Coral Capital and Northleaf Capital Partners backed Canadian company that provides decentralized water and wastewater treatment solutions, has acquired Aeration Industries International, LLC. Aeration is a U.S.-based company that manufactures aeration equipment and systems for the water and wastewater industry. No transaction terms were released.

Consumer Discretionary (Closed)

Marketplace Event has Acquired Montréal National Home Show and the Montréal HomeExpo

Marketplace Events LLC, a Sentinel Capital Partners LLC and Five Points Capital backed U.S.-based consumer show producing company, has acquired the Montréal National Home Show and Montréal HomeExpo of ExpoPromotion Inc. No transaction terms were released.

Park Lawn has Acquired Billingsley Funeral Home

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 acquired Billingsley Funeral Home Ltd., a Canadian funeral services company. Total transaction value is estimated to be $1.7 million.

The Boyd Group has Acquired Three Collision Repair Centers in Dallas

The Boyd Group Inc., a Canadian company that owns and operates collision repair centers, has acquired Three Collision Repair Centers a collision repair company based in the U.S.. No transaction terms were released.

Consumer Staples (Closed)

NeutriSci International has Acquired Ambarii Trade

NeutriSci International Inc. (TSXV: NU), a Canadian company that develops, markets, and distributes nutraceutical products in Canada, has acquired Ambarii Trade Corporation, a Canadian company that produces hemp derived cannabidiol (CBD) capsules. No transaction terms were released.

Construction and Engineering (Announced)

EllisDon to Acquire Four Canadian Operations of Carillion Canada

EllisDon Corporation, a Canadian company that provides construction and building services internationally, has agreed to acquire Four Canadian Operations of Carillion Canada Inc., which operates as an infrastructure services company providing comprehensive asset management solutions. No transaction terms were released.

Healthcare (Announced)

Emerald Plants Health Source to Acquire EPHS Holdings

Emerald Plants Health Source Inc., a Canadian cannabis production company, has agreed to acquire EPHS Holdings, Inc., a u.s.-based company that, through its subsidiary, Emerald Plants Health Source, Inc., engages in the cultivation of cannabis products. No transaction terms were released.

Financials (Announced)

Axis Auto Finance to Acquire Trend Financial

Axis Auto Finance Inc. (TSXV: AXIS), a Canadian company that provides non-standard auto financing solutions, has agreed to acquire Trend Financial Corp., a Canadian company that provides similar services. Total transaction value is estimated to be $28.7 million.

Financials (Closed)

CUV Ventures has Acquired Duales

CUV Ventures Corp. (TSXV: CUV), a Canadian company that operates an online travel and digital media marketing business through its subsidiary Travelucion S.L., has acquired Duales Inc, a Canadian electronic fund transfer services company. Total transaction value is estimated to be $130 thousand.

HUB International Ontario has Acquired GMS Insurance

HUB International Ontario Limited, an insurance, wealth management, and employee benefit services company, has acquired GMS Insurance Inc., a Canadian company that provides insurance brokerage services. No transaction terms were released.

Other (Announced)

Roseburg Forest Products Company to Acquire Pembroke MDF

Roseburg Forest Products Company Inc., an U.S.-based company that manufactures and markets various wood products in North America, has agreed to acquire the medium density fiberboard (MDF) and molding production facilities in Ontario of Pembroke MDF Inc., synthetic wood product manufacturing company. No transaction terms were released.

Other (Closed)

HUB International Manitoba has Acquired Desilets Insurance Brokers

HUB International Manitoba Ltd., a company that provides insurance brokerage services, has acquired Desilets Insurance Brokers Ltd., a Canadian company that offers personal insurance and commercial insurance in the farming industry. No transaction terms were released.

Hiku Brands Company has Acquired TS Prairie Retail

Hiku Brands Company Ltd. (CNSX: HIKU), a Canadian company that manufactures and retails coffee, clothing, and cannabis, has acquired TS Prairie Retail Corp, a Canadian company that operated “Tokyo Smoke” branded stores in Alberta, Saskatchewan, and Manitoba. Total transaction value is estimated to be $9.6 million.


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

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