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Canadian Market Recap: Week Ended June 2

  • Posted By: Karen Fisman, Brianna Aden, JT Paliwal, Clear Li, Michael Mazza, Chris Angelatos and Paris Aden

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  • Comments: 1

Market Update

Thirty-five Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 8.8% higher than the comparable period in 2016. The Canadian dollar depreciated by 0.30 cents, ending the week at 74 cents. The TSX was up 0.2% and underperformed the S&P 500 by 1.2% in U.S. dollar terms.

The new issue environment for U.S. middle market loans became slightly less favourable. Average total leverage stayed constant at 5.5x EBITDA compared to last week while yields rose by 7 bps to 6.45%, which is 29 bps lower than a year ago. After expanding in April, average yields contracted but stayed above their March levels. The average yield on first-lien institutional loans was 4.87%, according to The Lead Left, down from 5.03% in April.

Valitas Insights: Canadian M&A Diverges from the Trend

Are you wondering where M&A is heading this quarter?  We took a dive into April deal activity, and while our findings might not be predictive of the full quarter, they looked interesting enough to share.  What caught our interest? We noticed that Canadian deal activity diverged from the global trend.  Are you curious about how?  Keep reading…

Canadian M&A Transactions[i]

Energy (Closed)

Outrider Energy has Acquired Pinedale Energy

Outrider Energy Corp., a Canadian resource exploration company, has acquired Pinedale Energy Limited, a Canadian company that owns oil and gas producing properties, in a reverse merger transaction. No transaction terms were released.

Materials (Closed)

SK Capital Partners has Acquired Tri-Tex Co

SK Capital Partners LP, a U.S.-based private investment firm focusing on the specialty materials, chemicals and pharmaceutical sectors, has acquired a majority stake in Tri-Tex Co Inc, a Canadian specialty chemicals manufacturer. No transaction terms were released.

Industrials (Closed)

Speyside Equity has Acquired Shanahan’s Holdings

Speyside Equity LLC, a U.S.-based private equity firm, has acquired Shanahan’s Holdings Ltd., a Banyan Capital Partners and Yellow Point Equity Partners backed Canadian manufacturer and distributor of hardware, hollow-metal doors and construction specialty products. No transaction terms were released.

Public Sector Pension Investment Board and Grupo Aeroportuario del Sureste have Acquired Aerostar Airport Holdings

Public Sector Pension Investment Board, a Canadian government owned pension fund management firm, and Grupo Aeroportuario del Sureste, S.A.B. de C.V. (BMV: ASUR B), a Mexico-based operator of Mexican airports, have collectively acquired Aerostar Airport Holdings LLC, a U.S.-based company that operates and manages the Luis Muñoz Marín Airport in Puerto Rico. Total combined transaction value is estimated to be $430 million.

Ritchie Bros. Auctioneers has Acquired IronPlanet

Ritchie Bros. Auctioneers Incorporated (NYSE:RBA), a Canadian auctioneer and distributor of used and unused industrial equipment, has acquired IronPlanet Inc., a MAC Investment Business Unit backed U.S.-based company that provides online auction services. Total transaction value is estimated to be $988 million, reflecting a 13.0x EBITDA multiple.

Consumer Discretionary (Announced)

Uni-Select to Acquire The Parts Alliance

Uni-Select Inc. (TSX:UNS), a Canadian distributor of automotive refinish and industrial paint and related products, has agreed to acquire The Parts Alliance Ltd., an Hg Pooled Management Ltd backed U.K.-based supplier of automotive parts. Total transaction value is estimated to be $356 million, reflecting a 11.5x EBITDA multiple.

Boyd Group Income Fund to Acquire Assured Automotive

Boyd Group Income Fund (TSX:BYD.UN), a Canadian open-ended mutual fund trust, has agreed to acquire Assured Automotive Inc., a Canadian operator of auto body shops and collision facilities in Southern Ontario. Total transaction value is estimated to be $194 million, reflecting a 10.7x EBITDA multiple.

Consumer Discretionary (Closed)

Delta Hotels Sault Ste. Marie Waterfront Acquired

Delta Hotels Sault Ste. Marie Waterfront, a Canadian hotel real estate property, has been acquired. Delta Hotels Sault Ste. Marie Waterfront was a holding of Algoma Central Corporation. No buyer details were released. Total transaction value is estimated to be $10 million.

Healthcare (Announced)

Standard Graphite to Acquire Marapharm

Standard Graphite Corporation (TSXV:SGH), a Canadian company that engages in the acquisition and exploration of mineral properties, has agreed to acquire Marapharm Inc., a Canadian producer of medical marijuana. Total transaction value is estimated to be $7.0 million.

Financials (Announced)

GreenBank Capital to Acquire Reliable Stock Transfer

GreenBank Capital Inc (OTCPK: GRNB.F), a Canadian investment company, has agreed to acquire Reliable Stock Transfer Inc, a Canadian company that provides stock transfer services. Total transaction value is estimated to be $161 thousand.

Information Technology (Announced)

Turnpike Global Technologies to Acquire Shaw Satellite Services

Turnpike Global Technologies Inc., a Canadian company that develops personal digital assistant based fleet operations software, has agreed to acquire Shaw Satellite Services Inc., a Canadian company that provides fleet management solutions and services. Shaw Satellite Services is a subsidiary of Shaw Communications Inc. No transaction terms were released.

Vector Capital to Acquire Sandvine

Vector Capital, a U.S.-based private equity firm, has agreed to acquire Sandvine Corporation (TSX:SVC), a Canadian company that engages in the innovation, manufacturing and sale of network policy control solutions for communications service providers. Total transaction value is estimated to be $483 million.

Softvision has Acquired Momentus Software

Softvision Paradigms International Group LLC, a U.S.-based developer of digital products for professional brands, has acquired Momentus Software Inc., a Canadian-based technology company that designs and develops next-generation mobile technology solutions. No transaction terms were released.

Information Technology (Closed)

MemberClicks has Acquired ePly Services

MemberClicks Inc., a Five Elms Capital and Level Equity Management LLC backed U.S.-based company that develops membership management software, has acquired ePly Services Inc., a Canadian company that provides online event registration software. No transaction terms were released.

Volaris Group has Acquired Smartrak Holdings

Volaris Group Inc., a venture capital firm in Canada, has acquired Smartrak Holdings Limited, a New Zealand-based company that develops fleet management and safety location-based software solutions. No transaction terms were released.

Utilities (Announced)

Crius Energy Trust to Acquire U.S. Gas & Electric

Crius Energy Trust (TSX:KWH.UN), a Canadian open-ended limited purpose trust, has agreed to acquire U.S. Gas & Electric Inc., a The Tokarz Group Advisers LLC backed U.S.-based company that supplies energy to commercial and residential customers. Total transaction value is estimated to be $232 million.

Other (Announced)

Golden Dawn Minerals to Acquire BGP Resources

Golden Dawn Minerals Inc. (TSXV:GOM), a Canadian company that engages in the acquisition and exploration of mineral resource properties, has agreed to acquire BGP Resources Inc., a U.S.-based company that operates mineral projects in Canada. BGP Resources is a subsidiary of Advanced Mineral Technologies Inc. Total transaction value is estimated to be $400 thousand.

Copper Creek Gold to Acquire Minera Bonanza Peru

Copper Creek Gold Corp. (TSXV:CPV), a Canadian company that engages in the acquisition and exploration of mineral properties in North America, has agreed to acquire Minera Bonanza Peru S.A., a mineral exploration company. Total transaction value is estimated to be $800 thousand.

Other (Closed)

The Descartes Systems Group has Acquired PCSTrac

The Descartes Systems Group Inc (TSX:DSG), a Canadian provider of federated network and logistics technology solutions internationally, has acquired PCSTrac, Inc., a U.S.-based company that provides collaboration solutions for specialty retailers and logistics providers. Total transaction value is estimated to be $15.1 million.

New Flyer Industries has Acquired Carlson Engineered Composites

New Flyer Industries Inc. (TSX:NFI), a Canadian manufacturer and supplier of transit buses and motor coaches in North America, has acquired Carlson Engineered Composites Inc., a Canadian supplier of fibre-glass reinforced plastic to original equipment manufacturers. Total transaction value is estimated to be $17.5 million.

Valtech SE has Acquired Non-Linear Creations

Valtech SE (ENXTPA:LTE), a Luxemburg-based company that provides digital agency services, has acquired Non-Linear Creations Inc., a Canadian provider of digital services. No transaction terms were released.


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

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