Value Unleashed

Market Update

Forty-two Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 35.8% lower than the comparable period in 2018. The Canadian dollar appreciated by 0.02 cents, ending the week at 75 cents. The TSX underperformed the S&P 500 by 1.1% in U.S. dollar terms. WTI Crude oil rose by 6.2%, ending the week at $55.98 per barrel.

According to the LeadLeft, the private debt industry has emerged as a vital part of the private investment market in recent years and due to strong fundraising, fund managers have had significant amounts of capital available to deploy: private debt dry powder reached a record $307bn as at June.

Canadian M&A Transactions[i]

Energy (Closed)

Aureus Energy Services has Acquired Amperage Energy

Aureus Energy Services Inc., a PFM Capital backed company that offers oil heating, fluid heating and transfer services in the Western Canadian Sedimentary Basin, has acquired Amperage Energy Inc., a Canadian company that provides water treatment services for the oil and gas industry. No transaction terms were released.

Materials (Announced)

Regency Gold to Acquire Vanadium North Resources

Regency Gold Corp. (TSXV:RAU.H), a Canadian company that engages in the identification, acquisition, exploration, and development of mineral resource projects, has agreed to acquire Vanadium North Resources Inc., a Canadian company that specializes in the mining of Vanadium. Total transaction value is estimated to be $2.73 million.

Industrials (Announced)

Affiliated Distributors to Acquire IDI Independent Distributors

Affiliated Distributors, Inc., a U.S. company that operates a community of distributors and manufacturers of construction and industrial products, has agreed to acquire IDI Independent Distributors Inc., a Canadian company that supports independent industrial Canadian distributors. No transaction terms were released.

The GTI Group to Acquire Precision Specialized Division

The GTI Group, a Novacap Investments backed Canadian company that offers integrated transport services including land transportation, specialty storage and handling, international logistics, and freight forwarding services, has agreed to acquire Precision Specialized Division Inc., a Canadian company that provides open-deck and heavy haul transportation services. Precision Specialized Division was a subsidiary of Precision Truck Lines. No transaction terms were released.

FPS Food Process Solutions to Acquire Charlottetown Metal Products

FPS Food Process Solutions Corporation, a Canadian company that designs and manufactures freezing and cooling equipment, has agreed to acquire Charlottetown Metal Products Ltd., a Canadian company that designs and manufactures custom stainless-steel food-processing equipment. No transaction terms were released.

Robert's Farm Equipment Sales to Acquire McGavin Farm Equipment

Robert's Farm Equipment Sales Inc., a Canadian company that distributes new and used farm machinery and equipment, has agreed to acquire McGavin Farm Equipment Ltd, a Canadian company that operates as a dealer of new and used agriculture equipment. No transaction terms were released.

Industrials (Closed)

Lynx Equity has Acquired Alpine Shredders

Lynx Equity Limited, a Fengate Capital Management, Windsor Private Capital and Labourers' Pension Fund of Central and Eastern Canada backed Canadian private equity firm has acquired Alpine Shredders Limited, a Canadian company that designs, manufactures, and markets mobile shredding trucks. No transaction terms were released.

GEI Consultants has Acquired Savanta

GEI Consultants, Inc., a U.S. company that provides geotechnical, environmental, water resources, and ecological science and engineering solutions to customers internationally, has acquired Savanta Inc., a Canadian company that provides environmental consulting services. No transaction terms were released.

Consumer Discretionary (Announced)

Geyser Brands to Acquire Solace Management Group

Geyser Brands Inc. (TSXV:GYSR), a Canadian company that focuses on the production of medical marijuana and recreational marijuana in the form of dried marijuana, marijuana oils, live marijuana plants, and marijuana-related products, has agreed to acquire Solace Management Group Inc, a Canadian company that. offers licensing distribution and production arrangements. Total transaction value is estimated to be $4.48 million.

Consumer Discretionary (Closed)

City Capital Ventures; Saxonwold Capital has Acquired Redberry Group

City Capital Ventures, LLC and Saxonwold Capital LLC, two U.S. principal investment firms have acquired Redberry Group, a Canadian company that operates a chain of quick-service restaurants in North America. No transaction terms were released.

Consumer Staples (Closed)

Chrysalis Acquisition Partners has Acquired Phoenix Imports

Chrysalis Acquisition Partners Inc., the private equity arm of Canadian firm Chrysalis Capital Advisors Inc. has acquired Phoenix Imports Inc., a Canadian importer and distributor of single ingredient meat and bone dog products. No transaction terms were released.

Bobcaygeon Brewing Company has Acquired Beard Free Brewing

Bobcaygeon Brewing Company Ltd., a Canadian company that operates a brewery, has acquired Beard Free Brewing, a Canadian company that owns and operates a microbrewery. No transaction terms were released.

Information Technology (Announced)

Drive Media to Acquire Leadbox

Drive Media Ltd, a Canadian digital strategy and marketing agency for automotive dealerships, has agreed to acquire Leadbox Inc., a Canadian company that designs and develops websites for automotive industry. No transaction terms were released.

Information Technology (Closed)

Doxim Solutions has Acquired Market Connections

Doxim Solutions ULC, a Canadian company that designs and develops customer engagement solutions for financial services industry, has acquired Market Connections, Inc., a Canadian company that designs, develops, and executes customized and personalized communication technology solutions. No transaction terms were released.

Nordic Consulting Partners has Acquired Healthtech

Nordic Consulting Partners, Inc., a U.S. consulting company that provides customized end-to-end health IT solutions that help organizations improve the health of their patients and business, has acquired Healthtech Inc., a Canadian company that offers information management consulting services to healthcare organizations. No transaction terms were released.

Volaris Group has Acquired Distillery Solutions

Volaris Group Inc., a Canadian subsidiary of Constellation Software that designs and develops software for different industrial applications, has acquired Distillery Solutions, Inc., a U.S. company that designs and offers software solutions to craft beverage industry. No transaction terms were released.

CDW Canada has Acquired Scalar Decisions

CDW Canada Inc., a Canadian subsidiary of CDW Corporation that provides IT products and services for businesses and the public sector in Canada, has acquired Scalar Decisions Inc., a Canadian information technology solutions integrator, focused on security, infrastructure, and cloud. No transaction terms were released.

Coinsquare has Acquired Diamond

Coinsquare Ltd., a Riot Blockchain backed Canadian company that operates bitcoin, forex, ethereum, and gold trading platforms, has acquired Diamond Ltd., a Bermudian company that manages the StellarX trading platform. No transaction terms were released.

The Chamber of Digital Commerce Canada has Acquired Blockchain Association of Canada

The Chamber of Digital Commerce Canada, a U.S. trade association that represents the digital asset and blockchain industry, has acquired Blockchain Association of Canada, a non-profit organization that promotes education and awareness for blockchain technology. No transaction terms were released.

Financial Services (Closed)

People has Acquired Life Benefit Solutions

People Corporation (TSXV:PEO), a company that provides individual and employee group benefits, group retirement, wellness, and human resource solutions in Canada, has acquired Life Benefit Solutions Inc., a Canadian independent insurance broker. No transaction terms were released.

Crowe BGK has Acquired Robert Leitman CPA

Crowe BGK LLP, a Canadian company that provides auditing and accounting services, has acquired Robert Leitman CPA Inc., a Canadian independent accounting office. No transaction terms were released.

Other (Closed)

Icon Exploration has Acquired Budd Hutt

Icon Exploration Inc., a Canoe Financial and Siguiri Gold Mining backed Canadian company that focuses on the medical marijuana industry, has acquired Budd Hutt Inc., an Ontario-based private company that holds exclusive rights to acquire an Alberta private company that has submitted application for 37 retail cannabis stores. No transaction terms were released.

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