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Canadian M&A Market Recap: Week Ended May 18th

  • Posted By: Jennifer Wang, Simone Aria, Parsa Pouyan, Chris Angelatos, Paris Aden

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Market Update

Forty-seven Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 6.2% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.50 cents, ending the week at 78 cents. The TSX outperformed the S&P 500 by 1% in U.S. dollar terms. WTI Crude oil rose by 0.9%, ending the week at $71.37 per barrel.

According to The Lead Left, BDC’s share prices are back on the mend this earnings season. The average share price to net asset value per share saw an increase to 0.902 times, up from 0.86-0.87 times last month. As a result, the Wells Fargo BDC Index is back in positive territory with a 1.5% return year to date. The index is up 2.46% in the current month and 4.24% in the current quarter respectively.

Valitas Insights: Recession?… Someday - A Primer on Market Cycles

This is Part 1 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]

Energy (Announced)

Canuc Resources to Acquire Full Circle Energy

Canuc Resources Corporation (TSXV:CDA), a Canadian company that engages in the acquisition, exploration, and development of precious base metal projects in the Americas, has agreed to acquire Full Circle Energy Ltd., a Canadian company that owns and operates undeveloped oil prospective. No transaction terms were released.

Materials (Announced)

Timberlands International to Acquire PowerWood

Timberlands International Ltd, a U.K.-based company that invests in, manages, and develops forestry projects internationally, has agreed to acquire PowerWood Corporation, a Canadian company that operates sawmills. No transaction terms were released.

Cameo Resources to Acquire Labrador Cobalt

Cameo Resources Corp. (TSXV:CRU), a Canadian company that engages in the exploration of mineral properties, has agreed to acquire Labrador Cobalt Corp., a Canadian company that engages in the mining of cobalt and nickel. Total transaction value is estimated to be $555 thousand.

Materials (Closed)

Coronet Metals has Acquired Meguma Gold Belt

Coronet Metals Inc. (CNSX:CRF), a Canadian company that acquires, explores for, and develops natural resource properties in North America, has acquired Meguma Gold Belt Ltd., a Canadian company that owns the Cariboo Gold, Lac la Hache and Pinto gold projects. Total transaction value is estimated to be $3.61 million.

Industrials (Announced)                                                          

PF Growth Partners to Acquire Labstat International

PF Growth Partners LLC., a U.S. - based company that operates fitness clubs in the United States, has agreed to acquire Labstat International ULC, an Alaris Royalty Corporation backed Canadian company that provides tobacco testing, research and development, and analysis services for regulatory reporting and labeling. No transaction terms were released.

Decisive Dividend to Acquire Slimline Manufacturing

Decisive Dividend Corporation (TSXV:DE), a Canadian company with an acquisition orientation focused in the manufacturing sector, has agreed to acquire Slimline Manufacturing Ltd., a Canadian company that manufactures and sells wind and water machineries. Total transaction value is estimated to be $8.5 million.

Decisive Dividend to Acquire Hawk Machine Works

Decisive Dividend Corporation (TSXV:DE), a Canadian company with an acquisition orientation focused in the manufacturing sector, has agreed to acquire Hawk Machine Works Ltd., a Canadian company that provides metal fabrications, machine works, and precision metal products for different industries. Total transaction value is estimated to be $13.5 million.

Industrials (Closed)

Weichert Workforce Mobility has Acquired TheMIGroup

Weichert Workforce Mobility Inc., a U.S. – based company that provides workforce mobility management services, has acquired TheMIGroup Ltd., a Canadian company that provides mobility solutions internationally. No transaction terms were released.

HAWE Hydraulik SE has Acquired Hydra-Fab Fluid Power

HAWE Hydraulik SE, a BayBG backed German company that manufactures hydraulic components and systems to customers internationally, has acquired Hydra-Fab Fluid Power Inc., a Canadian company that designs, manufactures, and installs hydraulic, machine tool clamping and industrial filtration systems for the manufacturing and automotive testing industries. No transaction terms were released.

Consumer Discretionary (Announced)

Good Life Networks to Acquire Impression X

Good Life Networks Inc. (TSXV:GOOD), a Canadian company that operates in digital advertising technology, has agreed to acquire Impression X Inc., a Canadian company that operates as a connected television (CTV) advertising technology company. Total transaction value is estimated to be $7.68 million.

Quebecor to Acquire Quebecor Media

Quebecor Inc. (TSX:QBR.B), a Canadian company that operates in the telecommunications, media, and sports and entertainment businesses, has agreed to acquire remaining stake in Quebecor Media Inc., a Caisse de dépôt et placement du Québec and Capital d'Amérique CDPQ backed  Canadian company that operates in telecommunications and media. Total transaction value is estimated to be $1.69 billion.

Consumer Discretionary (Closed)

Ontario Teachers' Pension Plan Board has Acquired Ole Media Management

Ontario Teachers' Pension Plan Board, a Canadian company that is a privately-owned pension fund, has acquired the CEO’s remaining stake in Ole Media Management L.P., a Ontario Teachers' Pension Plan Board backed Canadian company that provides music publishing services. No transaction terms were released.

Consumer Staples (Closed)

Old Tomorrow has Acquired Double Trouble Brewing

Old Tomorrow Ltd., a Canadian company that produces craft beers, has acquired Double Trouble Brewing Co., a Canadian company that produces craft beers. No transaction terms were released.

Healthcare (Announced)

Canopy Growth to Acquire Canopy Health Innovations

Canopy Growth Corporation (TSX:WEED), a Canadian company that produces and sells medical marijuana in Canada, has agreed to acquire the outstanding shares in Canopy Health Innovations Inc., a Canadian company that develops and researches clinically ready whole plant cannabis drug formulations and dose delivery systems. Total transaction value is estimated to be $108 million.

Canopy Growth to Acquire BC Tweed Joint Venture

Canopy Growth Corporation (TSX:WEED), has agreed to acquire BC Tweed Joint Venture Inc., a Canadian company that engages in the production of cannabis. Total transaction value is estimated to be $375 million.

Eli Lilly and Company to Acquire AurKa Pharma

Eli Lilly and Company (NYSE:LLY), a U.S. – based company that discovers, develops, manufactures, and markets pharmaceutical products internationally, has agreed to acquire AurKa Pharma Inc., a TVM Capital backed Canadian company that develops medication for cancer treatments. Total transaction value is estimated to be $734 million.

Financials (Closed)

The Canadian Broker Network has Acquired South Western Insurance Group

The Canadian Broker Network, a provider of insurance brokerage services for property and casualty insurance in Canada, has acquired South Western Insurance Group Limited, a Canadian company that operates as a wholesale insurance intermediary offering insurance solutions for specialty, niche, program, and hard-to-place businesses internationally. No transaction terms were released.

Information Technology (Announced)

Internet of Things to Acquire Weather Telematics

Internet of Things Inc. (TSXV:ITT), a Canadian company that operates as an Internet of Things (IoT) technology accelerator and industry acquirer, has agreed to acquire Weather Telematics Inc., a Canadian company that develops road safety data platform and customized solutions for industrial, government, and consumer markets. Total transaction value is estimated to be $2.53 million.

Information Technology (Closed)

CGI Group has Acquired Facilite Informatique Canada

CGI Group Inc. (TSX:GIB.A), a Canadian company that provides information technology and business process services internationally, has acquired Facilite Informatique Canada Inc., a provider of information technology consulting services. No transaction terms were released.

Ecrime Management Strategies has Acquired BDProtect

Ecrime Management Strategies Inc., a LLR Partners, Fulcrum Equity Partners and Alerion Ventures backed U.S. – based company that provides cybercrime protection and intelligence services to organizations, has acquired BDProtect Inc., a Canadian company that provides online threat protection, domain monitoring and channel compliance services. No transaction terms were released.

HumanaCare has Acquired TranQool

HumanaCare, a Canadian company that provides mental and physical wellness services, has acquired TranQool Inc., a Canadian company that provides e-mental health platforms for personalized therapy solutions to every day people. No transaction terms were released.

Utilities (Closed)

Innergex Renewable Energy has Acquired Creek Power

Innergex Renewable Energy Inc. (TSX:INE), a Canadian company that operates as an independent renewable power producer, has acquired Creek Power Inc., a Canadian company that engages in the generation of electricity. No transaction terms were released.

Real Estate (Closed)

DELMA Real Estate has Acquired Lupa Investments

DELMA Real Estate Corporation, a Canadian company that develops real estate, has acquired Lupa Investments Inc., a Canadian company that provides real estate development and management. No transaction terms were released.

Other (Closed)

Access Information Management of Canada has Acquired Innovative Records Systems

Access Information Management of Canada ULC, a Canadian company that manages digital and physical records and information, has acquired Innovative Records Systems Corporation, a Canadian company that operates in the records management business. No transaction terms were released.

Lynx Equity has Acquired Day 2 Interiors

Lynx Equity Limited., a Canadian private equity firm has acquired Day 2 Interiors Limited, a U.K. - based company that provides furniture consulting services for offices, universities, restaurants and private residences.No transaction terms were released.

Spring Advertising has Acquired Watershed Communications Group

Spring Advertising, a Canadian company that operates as an advertising agency and design firm with expertise in creative design and brand marketing consulting, has acquired Watershed Communications Group, a Canadian company operates as a full-service advertising and communications firm. No transaction terms were released.

Western Stevedoring Company has Acquired Squamish Terminals

Western Stevedoring Company Limited, a Canadian company that provides professional stevedoring services to shippers and carriers internationally, has acquired Squamish Terminals Ltd., a Canadian company that imports and exports cargo to major international markets. No transaction terms were released.

Biome Grow has Acquired The Back Home Medical Cannabis

Biome Grow Inc., a Canadian company that provides medical marijuana, has acquired The Back Home Medical Cannabis Corporation, a Canadian company provides medical marijuana. No transaction terms were released.

Premium Brands Holdings has Acquired Penguin Meat Supply

Premium Brands Holdings Corporation (TSX:PBH), a Canadian company that manufactures and distributes food products primarily in North America, has acquired Penguin Meat Supply Ltd., a Canadian company that operates in the wholesale and retail meat distribution business. Total transaction value is estimated to be $5.0 million.

 

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

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