Value Unleashed

Market Update

Fifty-Nine Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 10.7% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.78 cents, ending the week at 79 cents. The TSX underperformed the S&P 500 by 0.1% in U.S. dollar terms. WTI Crude oil rose by 1.6%, ending the week at $68.40 per barrel.

According to The Lead Left, U.S. LBO loan issuance totaled a modest US$19bn in 1Q18. This is below the US$23bn and US$25bn issued in 4Q17 and 1Q17, respectively. However, the large amount of LBO announcements made in 1Q18 may lead to a higher 2Q18 figure.

Canadian M&A Transactions[i]

Materials (Closed)

Inocucor Technologies has Acquired ATP Nutrition

Inocucor Technologies, Inc., a Desjardins Business Capital régional et coopératif, TPG Capital, Cycle Capital Management, Red Metal Capital, Closed Loop Capital, Cairn Investment Group, and Pontifax Agtech Management backed Canadian developer and producer of biological crop inputs for high-value produce and row crops, has acquired ATP Nutrition Ltd., a Canadian producer of science-based plant nutrients. No transaction terms were released.

Industrials (Announced)

Eurovia to Acquire TNT2

Eurovia SAS, a French transport infrastructure construction company, has agreed to acquire TNT2 Inc., a Canadian provider of road and building construction services. No transaction terms were released.

Industrials (Closed)

D.F. Barnes has Acquired Burntisland Fabrications

D.F. Barnes Services Limited, a Canadian provider of fabrication, industrial construction, rigging and vessel maintenance services, has acquired Burntisland Fabrications Limited, an SSE Venture Capital backed British provider of fabrication solutions for oil and gas, renewable, and infrastructure industries. No transaction terms were released.

Power Factors has Acquired Arista Renewable Energies

Power Factors, LLC, a U.S.-based renewable energy performance management software developer, has acquired Arista Renewable Energies, Inc., a Canadian renewable energy consulting company. No transaction terms were released.

Consumer Discretionary (Closed)

Ogilvy Montréal has Acquired Brad

Ogilvy Montréal Inc., a full-service advertising agency, has acquired Brad, Inc., a Canadian advertising agency. No transaction terms were released.

Regal Ware has Acquired Espro

Regal Ware, Inc., a U.S.-based cookware manufacturer, has acquired Espro, Inc., a Canadian manufacturer of coffee and tea presses and accessories. No transaction terms were released.

Equicapita has Acquired Smitty's Canada

Equicapita Income GP Ltd., a Canadian private equity firm, has acquired Smitty's Canada Inc., a family restaurant chains operator. No transaction terms were released.

Consumer Staples (Closed)

KIK Custom Products has Acquired James Austin Company

KIK Custom Products Inc., a Canadian manufacturer of consumer packaged goods, has acquired James Austin Company, a U.S.-based manufacturer of cleaning products. No transaction terms were released.

Healthcare (Announced)

EVIO to Acquire Keystone Labs

EVIO, Inc. (OTCPK:EVIO), a U.S.-based leading provider of cannabis testing and scientific research services, has agreed to acquire Keystone Labs Inc., a Heath Canada accredited testing facility. Total transaction value is estimated to be $2 million.

Abattis Bioceuticals to Acquire Gabriola Green Farms

Abattis Bioceuticals Corp. (OTCPK:ATTB.F), a Canadian biotechnology company that researches, develops, licenses, and markets ingredients and formulas for use in the biopharma, nutraceutical, cosmetic, and animal nutrition markets, has agreed to acquire Gabriola Green Farms Inc., a Canadian producer of cannabis for medicinal purposes. Total transaction value is estimated to be $2.50 million.

MPX Bioceutical to Acquire Canveda

MPX Bioceutical Corporation (CNSX:MPX), a Canadian company that together with its subsidiaries, operates in the natural health products industry in North America, has agreed to acquire Canveda Inc., a Canadian producer of medical marijuana for patients. Total transaction value is estimated to be $22.7 million.

Financials (Closed)

Easy Legal Finance has Acquired Rhino Legal Finance

Easy Legal Finance Inc., a Canadian legal financing company, has acquired Rhino Legal Finance Inc., a Canadian provider of cash advances and claim settlement for people hurt in car accidents. No transaction terms were released.

Information Technology (Closed)

Tukazza! has Acquired Echangedemaison.com

Tukazza! SAS, a Maif Avenir backed French operator of a website that allows users to exchange homes or apartments during vacation, has acquired Echangedemaison.com, a Canadian operator of a home exchange website. No transaction terms were released.

eStruxture Data Centers has Acquired Backbone Data Vault

eStruxture Data Centers Inc., a Caisse de dépôt et placement du Québec and Fengate Capital Management backed Canadian provider of network and cloud-neutral data center solutions, has acquired Backbone Data Vault Inc., a Canadian co-location and data center services provider. No transaction terms were released.

SHEA Solutions has Acquired Ardent Solutions

SHEA Solutions Inc., a Canadian business optimization software developer, has acquired Ardent Solutions Limited, a UK-based provider of enterprise resource planning (ERP) and customer relationship management (CRM) software solutions and applications. No transaction terms were released.

Subscribe Technologies has Acquired GIGX

Subscribe Technologies Inc. (CNSX:SAAS), a Canadian company that develops, acquires, operates, and manages software as a service (SaaS) business, has acquired GIGX, a Canadian crypto-powered tokenized freelancer platform. Total transaction value is estimated to be $15 thousand.

Genatec Ottawa has Acquired BMD Gestion Informatisee

Genatec Ottawa Inc., an IT and business solutions consultancy services provider, has acquired BMD Gestion Informatisee Inc, a Canadian provider of IT support and consultancy services. No transaction terms were released.

Other (Closed)

KNGS Exploration and Development has Acquired Asia Resources Oil

KNGS Exploration and Development Limited, a subsidiary of Hong Kong-based investment holding company United Energy Group Limited, has acquired Asia Resources Oil Limited, a Canadian oil company. No transaction terms were released.