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Canadian M&A Market Recap: Week Ended April 28

  • Posted By: Karen Fisman, Yingxi Liao, Louis Goldberg, Clear Li, Miranda Li

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Market Update

Thirty-three Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 12.0% higher than the comparable period in 2016. The Canadian dollar depreciated by 0.85 cents, ending the week at 73 cents. The TSX was down 1.3% and underperformed the S&P 500 by 2.8% in U.S. dollar terms.
 

The new issue environment for U.S. middle market loans became more favourable as average total leverage rose to 5.0x EBITDA from 4.8x last week while yields fell by 27 bps to 6.43%, a level that is 58 bps lower than a year ago. Term loan primary market yields have increased this April from Q1 2017 levels. The average yield for first-lien institutional tranches of three-year debt has increased to 5.03% in April. This represents a 42 bps increase compared to the average yield in Q1 2017.


 

 

 


 

Valitas Insights:  The Uncertainty of the Deal:  US Trade Policy and Canadian M&A

In the opening pages of Trump: The Art of the Deal, Donald Trump describes his work style:

“I play it very loose…I prefer to come to work each day and just see what develops.”

This approach was recently highlighted in President Donald Trump’s rumblings about trade policy with Canada. In this week’s article, we discuss the uncertainty of U.S. trade policy and its impact on Canadian deal activity.  Read our full article here.

 

Canadian M&A Transactions

Energy (Closed)

Enagás Internacional and Carmen Acquires Compañía Operadora de Gas del Amazonas

Enagás Internacional, S.L.U., a Spanish gas transportation services provider, and Carmen Corporation, a Canada Pension Plan Investment Board backed Canadian company, have acquired Compañía Operadora de Gas del Amazonas S.A.C., a Peruvian pipeline company. Total transaction value is estimated to be $29 million.

 

Materials (Announced)

Greenbank Capital to Acquire Ubique Minerals

Greenbank Capital Inc (OTCPK:GRNB.F), a Canadian investment company, has agreed to acquire Ubique Minerals Limited, a Canadian mining company. No transaction terms were released.

 

Tarku Resources to Acquire Eureka Exploration

Tarku Resources Ltd. (TSXV:TKU), an exploration company focusing on mineral resource properties in Saskatchewan and Québec, has agreed to acquire Eureka Exploration Inc., a mineral exploration company focused on generating sustainable projects for precious and base metals in Québec. No transaction terms were released.

 

mCLOUD to Acquire Universal Ventures

mCLOUD Corporation, an American mobile technology company that provides solutions to improve equipment health and performance, has agreed to acquire Universal Ventures Inc., a Canadian mineral exploration company. No transaction terms were released.

 

Materials (Closed)

Newell Brands Acquires Sistema Plastics

Newell Brands Inc. (NYSE:NWL), a leading global consumer goods company, has acquired Sistema Plastics Limited, a New Zealand based manufacturer that sells a range of plastic storage containers. Total transaction value is estimated to be $623 million, implying a 3.12x revenue multiple.

 

Industrials (Announced)

Allianz Capital, Dutch Infrastructure Fund, EDF Invest, and The Silk Road Fund to Acquire Autostrade per l'Italia

Allianz Capital Partners GmbH, the investment arm of the German insurer Allianz; Dutch Infrastructure Fund B.V., a diversified principal investment firm; EDF Invest, the asset management arm of Electricite de France SA; The Silk Road Fund Co Ltd., a Chinese state-owned investment fund specializing in infrastructure, resource development, energy, and industrial and financial cooperation, have agreed to acquire Autostrade per l'Italia S.p.A., an Italian company that constructs and operates toll paying highways worldwide. Autostrade was a subsidiary of Atlantia S.p.A. (BIT:ATL). Total transaction value is estimated to be $2.2 billion, implying a 11.0x EBITDA multiple and a 7.06x revenue multiple.

 

Gurit Holding to Acquire PH Windsolutions

Gurit Holding AG (SWX:GUR), a Swiss developer and manufacturer of advanced composite materials and related technologies, has agreed to acquire PH Windsolutions Inc., a Canadian company that provides heating, mould closing, and blade molding systems for the wind energy industry. No transaction terms were released.

 

Industrials (Closed)

Dialog Acquires Newstudio architecture

Dialog Inc., a Canadian multi-disciplinary design firm, has acquired newstudio architecture inc., a Canadian architectural services company. No transaction terms were released.

 

General Electric Acquires LM Wind Power

General Electric Company (NYSE:GE), the world’s leading infrastructure and technology company, has acquired LM Wind Power Holding A/S, an Athenum capital backed Denmark-based technology developer and manufacturer of rotor blades to the wind industry. Total transaction value is estimated to be $2.2 billion.

 

Consumer Discretionary (Closed)

Rubbish Boys Disposal Service Acquires Delete

Rubbish Boys Disposal Service Inc., a Vancity Capital Corporation backed, Canadian full-service junk removal company, has acquired Delete, an American cleaning and removal of household products provider. No transaction terms were released.

 

Inovva Acquires The Oyster Group

Inovva, a Canadian customized software solutions provider, has acquired The Oyster Group, a Canadian company that offers circulation management and fulfillment services to regional and specialty magazines in Canada and the United States. No transaction terms were released.

 

Consumer Staples (Announced)

Pickseed Canada to Acquire Moore Seed Processors

Pickseed Canada, Inc., a Canadian developer of forage crops for livestock producers, has agreed to acquire Moore Seed Processors Inc., a Canadian turfgrass and forage crop seeds producer. No transaction terms were released.

 

Healthcare (Announced)

Medwise Pharmaceuticals to Acquire Tricel

Medwise Pharmaceuticals Limited, a Vancouver-based pharmaceutical company, has agreed to acquire Tricel S.A., a Luxemburg holding company. Total transaction value is estimated to be $4.8 million.

 

Healthcare (Closed)

Aurora Cannabis Acquires Peloton Pharmaceuticals

Aurora Cannabis Inc. (TSXV:ACB), a Canadian producer and distributer of medical marijuana and cannabis oil products, has acquired Peloton Pharmaceuticals Inc., a Canadian pharmaceutical grade cannabis producer. Total transaction value is estimated to be $7 million.

 

Teleflex Medical Canada Acquires Pyng Medical

Teleflex Medical Canada Inc., a Canadian medical device manufacturer, has acquired Pyng Medical Corp. (TSXV:PYT), a Canadian company that commercializes trauma and resuscitation products for front-line critical care and emergency medical personnel worldwide. Total transaction value is estimated to be $22 million, implying a 3.5x revenue multiple.

 

Maricann Group Acquires Danbel Ventures

Maricann Group Inc. (CNSX:MARI), a Canadian producer and distributer of marijuana for medical purposes, has acquired Danbel Ventures Inc., a Canadian investment company, in a reverse takeover transaction. No transaction terms were released.

 

Harvest One Cannabis Acquires United Greeneries Holdings and Satipharm

Harvest One Cannabis Inc., a Canadian investment company, has acquired United Greeneries Holdings and Satipharm AG., two producers and distributors of marijuana for medical purposes in Canada and Switzerland respectively. No transaction terms were released.

 

Financials (Closed)

           The Carlyle Group Acquires Global Credit Rating

The Carlyle Group LP (NasdaqGS:CG), an American investment company, has acquired Global Credit Rating Co (Pty) Ltd., a PROPARCO and Deutsche Investitions- und Entwicklungsgesellschaft backed South Africa-based securities rating agency. No transaction terms were released.

 

PartnerRe Acquires Aurigen Capital

PartnerRe Ltd., a global reinsurer, has acquired Aurigen Capital Limited, a Bermuda-based company that provides reinsurance services for life insurance policies in North America. Total transaction value is estimated to be $377 million.

 

Pool Safe Acquires Pounder Venture Capital

Pool Safe Inc. (TSXV:POOL), a BG Capital Group Investment Arm backed, Canadian company that produces and distributes Pool Safe units, a multi-purpose personal poolside attendant, to hotels, resorts, or cruise ships in the United States, has acquired Pounder Venture Capital Corp., a Canadian capital pool company. No transaction terms were released.

 

Information Technology (Announced)

CGI Group to Acquire ECommerce Systems

CGI Group Inc. (TSX:GIB.A), a Canadian information technology and business process services provider, has agreed to acquire ECommerce Systems, Inc., an American technology and strategic services provider. No transaction terms were released.

 

Sunwave Communications to Acquire Star Solutions International

Sunwave Communications (Hong Kong) Ltd. has agreed to increase its stake in Star Solutions International Inc., a GrowthWorks backed, Canadian company that designs, manufactures, deploys, and manages internet protocol (IP)-based network infrastructure products for CDMA and GSM wireless operators globally. Total transaction value is estimated to be $648 thousand.

 

Information Technology (Closed)

Exige Acquires Outside Intelligence

Exiger LLC, an American company that offers governance, risk, and compliance (GRC) services, has acquired Outside Intelligence, Inc., a Canadian search-based application solutions provider for enterprises. No transaction terms were released.

 

            Scholastic Acquires Ooka Island

Scholastic Corporation (NasdaqGS:SCHL), a global children’s book publisher, has acquired Ooka Island Inc., a Canadian game-based learn to read program developer and distributer. No transaction terms were released.

 

Deluxe Acquires RDM

Deluxe Corporation, a Canadian growth engine for small businesses and financial institutions, has acquired RDM Corporation (TSX:RC), a Canadian provider of specialized software and hardware products for electronic payment processing. Total transaction value is estimated to be $129 million, implying a 12.2x EBITDA multiple and a 3.17x revenue multiple.

 

Accenture Acquires Arismore

Accenture plc (NYSE:ACN), a global consulting, technology, and outsourcing services provider, has acquired Arismore SAS, an Ardian backed, provider of enterprise architecture and information systems security solutions to companies and government in France. No transaction terms were released.

 

Real Estate (Announced)

CWN Mining Acquisition to Acquire 2018334 Alberta

CWN Mining Acquisition Corporation (TSXV:CWN), a Canadian mineral exploration company, has agreed to acquire 2018334 Alberta Ltd., a Canadian company that owns real estate property. Total transaction value is estimated to be $176 thousand.

 

Other (Announced)

The North West Company to Acquire North Star Air

The North West Company Inc. (TSX:NWC), a Canadian retailer of food and everyday products and services to rural communities and urban neighbourhoods internationally, has agreed to acquire North Star Air Ltd., a Canadian privately-held airline company. Total transaction value is estimated to be $42 million.

 

African Gold Group to Acquire 2516232 Ontario

African Gold Group, Inc. (TSXV:AGG), a Canadian junior mineral exploration company, has agreed to acquire 2516232 Ontario Inc., a Canadian private company. Total transaction value is estimated to be $3 million.

 


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

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