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Canadian Market Recap: Week Ended November 24

  • Posted By: Ted Pispidikis, Steven McMaster, Peter Yuan, Michael Mazza

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Market Update

Fifty-one Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 6.0% higher than the comparable period in 2016. The Canadian dollar appreciated by 0.59 cents, ending the week at 79 cents. The TSX outperformed the S&P 500 by 0.5% in U.S. dollar terms. WTI Crude oil rose by 3.9%, ending the week at $58.95 per barrel.

According to The Lead Left, PE sellers are preferring outright sales over IPOs in recent times. 2017 has shown PE-backed IPOs are hitting the lower end of the filing price range more frequently than in the past, and many PE sellers are choosing outright sales in the private markets when acquisitions can consistently bring in high multiples.


Valitas Insights: Part 2: Getting Bang for Your Buck in Today’s Pricey M&A Market

This week’s article is Part 2 of a 2-part series on driving growth in new acquisitions against the backdrop of today’s challenging M&A landscape. Part 1 of this series considered the steps buyers can take during the due-diligence stage to establish realistic growth objectives, whereas this edition explores post-acquisition integration considerations for buyers aiming to meet their growth objectives.

Read our full article here.

And on other topics…

Check out this interesting take from Divestopedia on how private equity buyers are starting to recognize strategic value in tech company acquisitions.

 

Canadian M&A Transactions[i]

Energy (Closed)

Predator Drilling has Acquired J. B. Hunt Gas and Oil Drilling

Predator Drilling LLC, a Canadian company that provides oil and gas well drilling services, has acquired J. B. Hunt Gas and Oil Drilling, a U.S.-based company that operates in the drilling oil and gas wells business. No transaction terms were released.

Materials (Announced)

GoldTrain Resources to Acquire Idaho Champion Gold Mines

GoldTrain Resources Inc. (CNSX:GT), a MineralFields Group-backed Canadian junior exploration company, which acquires and explores mineral deposits in the Northern Ontario region, has agreed to acquire Idaho Champion Gold Mines Ltd., a Canadian company that offers acquisition, exploration, and development of precious metal projects, including Gold, in Idaho. No transaction terms were released.

Industrials (Announced)

Aurora Cannabis to Acquire Larssen

Aurora Cannabis Inc. (TSX:ACB), a Canadian company that together with its subsidiaries, produces and distributes medical marijuana products in Canada, has agreed to acquire Larssen Ltd, a Canadian company that engages in the design, engineering, and construction of greenhouses across Canada. No transaction terms were released.

Industrials (Closed)

Distinct Infrastructure Group has Acquired Crown Utilities

Distinct Infrastructure Group Inc. (TSXV:DUG), a SeaFort Capital-backed Canadian company that through its subsidiaries, operates as a design, engineering, construction, services, and maintenance company in Canada, has acquired Crown Utilities Ltd., a Canadian company that provides installation of utility services through directional drilling, hydrovac excavation, ploughing, transmission lines/regulator stations, engineering, and designing/building. Total transaction value is estimated to be $16.8 million.

Consumer Discretionary (Closed)

Talk Shop Media has Acquired Brix Media

Talk Shop Media Ltd, a Canadian company that offers public relations agency services in Vancouver, has acquired Brix Media Co., a Canadian company that provides public relations and marketing services. No transaction terms were released.

Evolution Technology Resources has Acquired Midacor Company

Evolution Technology Resources Inc. (OTCPK:ETKR), an Eliseo Partners-backed Canadian company that operates in the online gambling and social gaming industry, has acquired Midacor Company, a Canadian company that owns and operates casinos online. No transaction terms were released.

YO! Sushi Group has Acquired Bento

YO! Sushi Group Ltd., a Mayfair Equity Partners-backed U.K.-based company that owns, operates, and franchises restaurants in the United Kingdom, has acquired Bento Inc., a Canadian company that owns and operates quick service restaurants in North America. Total transaction value is estimated to be $127 million, implying a 12.2x EBITDA multiple and a 1.61x revenue multiple.

Consumer Staples (Closed)

L.B. Maple Treat has Acquired 9020 2292 Québec

L.B. Maple Treat Corporation, a Canadian company that produces and distributes maple syrup in range of grades and containers, has acquired 9020 2292 Québec Inc., a Canadian company that engages in the production of maple flakes and processing and bottling of maple syrup. Total transaction value is estimated to be $40 million, implying a 7.8x EBITDA multiple.

Healthcare (Announced)

Aurora Cannabis to Acquire H2 Biopharma

Aurora Cannabis Inc. (TSX:ACB), a Canadian company that together with its subsidiaries, produces, and distributes medical marijuana products, has agreed to acquire H2 Biopharma Inc., a Canadian company that engages in the production and distribution of medical marijuana. Total transaction value is estimated to be $25.0 million.

Information Technology (Announced)

OV2 Investment 1 to Acquire The Ledger Group

OV2 Investment 1 Inc. (TSXV:OVO.P), a Laurentian Bank of Canada-backed Canadian company that intends to identify, evaluate, and acquire assets, properties, or businesses with a view to complete a qualifying transaction, has agreed to acquire The Ledger Group Inc., a Canadian company that engages in building and managing a balanced portfolio of blockchain enabled companies, tokens, and cryptocurrencies. No transaction terms were released.

Siemens Product Lifecycle Management Software to Acquire Solido Design Automation

Siemens Product Lifecycle Management Software Inc., a U.S.-based company that develops and provides product lifecycle management and manufacturing operations management software solutions, has agreed to acquire Solido Design Automation Inc., a BDC Venture Capital, Westcap Management, CIC Asset Management,  and Western Innovation Initiative-backed Canadian company that provides accurate variation analysis and design software solutions for custom ICs (IP and systems-on-a-chip). No transaction terms were released.

Other (Closed)

CARDONE Industries has Acquired ADP Distributors

CARDONE Industries, Inc., a U.S.-based company that remanufacturers automotive parts, has acquired ADP Distributors Inc., a Canadian company that distributes auto components and parts. 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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