Value Unleashed

Market Update

Twenty-eight Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 41.4% lower than the comparable period in 2018. The Canadian dollar depreciated by 0.88 cents, ending the week at 75 cents. The TSX overperformed the S&P 500 by 2.1% in U.S. dollar terms. WTI Crude oil rose by 7.5%, ending the week at $51.91 per barrel.

According to The Lead Left, total private debt fundraising fell in 2018, with 162 funds securing an aggregate $110bn throughout the year. In comparison, in 2017, 186 private debt funds held a final close and raised $129bn. Although direct lending continued to represent the largest bulk of fundraising activity, direct lending fundraising dipped steeply this year.

Canadian M&A Transactions[i]

Energy (Closed)

           Total Safety U.S. has Acquired Vantage Safety Services

Total Safety U.S., Inc., an American Capital, Ltd., Warburg Pincus LLC and Littlejohn & Co. LLC backed American company that provides integrated industrial safety services, strategies, and equipment to oil and gas, industrial, and process industry customers in the United States and internationally, has acquired Vantage Safety Services Ltd, a Canadian company that provides safety services and products to the oil and gas industry in Northern Alberta and British Columbia. No transaction terms were released.

Materials (Announced)

           Vizsla Resources to Acquire NorthBase Resources

Vizsla Resources Corp. (TSXV:VZLA), a Canadian natural resource company that engages in the acquisition, exploration, and development of mineral resource properties, has agreed to acquire NorthBase Resources Inc., a Canadian company that engages in the exploration and development of copper. Total transaction value is estimated to be $1.4 million.

           Vangold Mining to Acquire Aventura Gold

Vangold Mining Corp. (TSXV:VAN), a Canadian company that engages in the acquisition, exploration, and evaluation of mineral assets, has agreed to acquire Aventura Gold Ltd., a Canadian company that offers metal and mineral acquisition, exploration, and production services. Total transaction value is estimated to be $17.4 million.            .

           Clay Group to Acquire Golden Queen Mining Company

Mr. Thomas M. Clay, together with certain other members of the Clay family and associated entities (collectively, the "Clay Group") have agreed to acquire Golden Queen Mining Company, LLC, a Canadian company that offers exploration and mining of gold and silver ores has agreed to be acquired. Total transaction value is estimated to be $58.6 million.

Materials (Closed)

           Taipak Enterprises has Acquired Pacific Bag

Taipak Enterprises Ltd., a Canadian company that designs, develops, and manufactures packaging solutions and products, has acquired Pacific Bag, Inc., an American company that manufactures and markets packaging materials and equipment. TricorBraun, parent company of Taipak Enterprises, will combine Pacific Bag with its existing flexibles business, Taipak, to create TricorBraun Flex. No transaction terms were released.

Industrials (Announced)

           Mincon Group to Acquire Pacific Bit Of Canada

Mincon Group plc (AIM:MCON), a French company that engages in the design, manufacture, sale, and service of rock drilling tools and associated products worldwide, has agreed to acquire Pacific Bit Of Canada Inc., a company that supplies mining and rock drilling equipment to mines, mining contractors, quarries, well drillers, and rock excavation contractors, as well as shoring and piling companies. No transaction terms were released.

Industrials (Closed)

           Total Safety U.S. has Acquired Pivotal Safety

Total Safety U.S., Inc., an American Capital, Ltd., Warburg Pincus LLC and Littlejohn & Co. LLC backed American company that provides integrated industrial safety services, strategies, and equipment to oil and gas, industrial, and process industry customers in the United States and internationally, has acquired Pivotal Safety Ltd., a Canadian company that provides industrial safety services, including safety personnel, high angle rescue teams, and plant maintenance safety crews. No transaction terms were released.

           Morrison Hershfield Group has Acquired CCG Facilities

Morrison Hershfield Group Inc., a Canadian company that provides engineering services in Canada and the United States, has acquired CCG Facilities Integration Incorporated, an American company that provides facility integration, technology consulting, and program management services to mission critical facilities. No transaction terms were released.

           Duravant has Acquired Wulftec International

Duravant LLC, an American company that designs, manufactures, and maintains process equipment for food processing, packaging, and material handling applications, has acquired Wulftec International, Inc., a Canadian company that develops, manufactures, and distributes stretch film wrapper and pallet wrapper machines. No transaction terms were released.

           Brenntag AG has Acquired Pachem Distribution

Brenntag AG (XTRA:BNR), a German chemical distribution company that purchases and supplies industrial and specialty chemicals in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally, has acquired Pachem Distribution Inc, a Canadian company that engages in distribution of specialty chemicals and ingredients to customers in personal care, pharmaceutical, household, and industrial and institutional cleaning markets. No transaction terms were released.

           Equicapita Income GP has Acquired I-XL Building Products

Equicapita Income GP Ltd., a Canadian private equity firm specializing in buyouts and acquisitions, has acquired I-XL Building Products Inc., a Canadian company that imports and distributes brick, stone, and building products in Canada. No transaction terms were released.

           FNX-INNOV has Acquired The S.M. Group International

FNX-INNOV Inc., a Canadian company that provides engineering and project management services, has acquired The S.M. Group International Inc., an Alaris Royalty Corp. backed Canadian company that provides engineering, environment, and project management services. No transaction terms were released.

           Day & Ross has Acquired Stonehammer Transport

Day & Ross Inc., a Canadian company that provides road transportation services with a fleet of tractors, vans, and trailers to its customers, has acquired Stonehammer Transport Inc., a Canadian company that provides freight transportation services. No transaction terms were released.

           LINXIS Group has Acquired Unifiller Systems

LINXIS Group, an IK Investment Partners and Capzanine backed French company that engages in the design, manufacture, and installation of specialized equipment for bakery, dairy, and health industries, has acquired Unifiller Systems Inc., a Canadian company that supplies portioning and depositing equipment for small and mid-sized bakers. No transaction terms were released.

           Motorcar Parts of America has Acquired Dixie Electric

Motorcar Parts of America, Inc. (NasdaqGS:MPAA), an American company that manufactures, remanufactures, and distributes heavy duty trucks, and industrial and agricultural application parts, has acquired Dixie Electric Ltd., a Canadian company that remanufactures and manufactures generators and starters. No transaction terms were released.

           Morbark has Acquired DENIS CIMAF

Morbark, Inc., an American company that designs and manufactures equipment for forestry, recycling, sawmill, biomass, landscaping/irrigation, equipment rental, and tree care markets, has acquired DENIS CIMAF Inc., a Canadian company that designs and manufactures brush cutters for land clearing, forest fire prevention, and roadside maintenance applications. No transaction terms were released.

           RPM International has Acquired Siamons International

RPM International Inc. (NYSE:RPM), an American company that manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide, has acquired Siamons International, Inc., a Canadian company that develops and commercializes mold and mildew control products in the United States and Europe. No transaction terms were released.

Consumer Discretionary (Announced)

           NexTech AR Solutions to Acquire AR Ecommerce

NexTech AR Solutions Corp. (CNSX:NTAR), a Canadian company that engages in the acquisition and development of augmented reality (AR) technology, has agreed to acquire AR Ecommerce, LLC, a Canadian company that operates an e-Commerce platform. Total transaction value is estimated to be $1.6 million, implying a 0.4x EBITDA multiple and a 0.45x revenue multiple.

           H.I.S. Co. to Acquire Red Label Vacations

H.I.S. Co., Ltd. (TSE:9603), a Japanese company that provides travel agency services worldwide, has agreed to acquire Red Label Vacations Inc., a Canadian company that owns and operates a web portal which offers online travel agency services. No transaction terms were released.

           River Wild Exploration to Acquire CBD Lifestyle

River Wild Exploration Inc. (CNSX:RWI), a Canadian exploration stage company that engages in the acquisition, exploration, and development of mineral properties in Canada, has agreed to acquire CBD Lifestyle Corp., a Canadian company that develops and markets beverages infused with hemp-derived extracts and derivatives. Total transaction value is estimated to be $14.3 million.

Consumer Discretionary (Closed)

           Liberty Security Systems has Acquired Rolen Security

Liberty Security Systems, Inc., a Canadian company that provides residential and commercial security systems, has acquired Rolen Security, a Canadian company that provides home and commercial security systems. No transaction terms were released.

           Ottawa Flowers has Acquired Givopoly

Ottawa Flowers Inc., a Canadian company that retails flowers, has acquired Givopoly Corp., a Canadian company that operates an online platform for distribution of flowers and gifts in Canada. No transaction terms were released.

           Clairus Group Canada has Acquired AT PAC Auto Parts

Clairus Group Canada Inc., a Canadian company that operates as an automobile glass and claims management provider, has acquired AT PAC Auto Parts, Inc., a Canadian company that distributes aftermarket auto body parts for cars and trucks. No transaction terms were released.

Consumer Staples (Closed)

           Pestell Pet Products has Acquired Targeted Pet Treats

Pestell Pet Products Inc., a Canadian company backed by Wind Point Partners, that manufactures cat litter and small animal bedding products, has acquired Targeted Pet Treats, LLC, an American company that manufactures injection molded pet dental treats, toys, and chews. No transaction terms were released.

           Graham Partners has Acquired Giraffe Foods

Graham Partners, an American private equity firm specializing in acquisitions, management-led buyouts, growth financings, and recapitalizations of privately held middle market companies, has acquired Giraffe Foods Inc., a Graham Partners backed Canadian company that develops and distributes sauces, marinades, dips, and dressings. No transaction terms were released.

           Fertin Pharma has Acquired Tab Labs

Fertin Pharma A/S, a EQT Partners AB backed Danish company that develops and manufactures medicated chewing gums, has acquired Tab Labs, Inc., a Canadian company that manufactures sugar-free tablets, chewing gums, and mints. No transaction terms were released.

Financials (Announced)

           International Corona Capital to Acquire Murenbeeld & Co.

International Corona Capital Corp. (TSXV:IC), a Canadian exploration stage company that engages in acquiring, exploring, and evaluating natural resource properties in Quebec, Canada, has agreed to acquire Murenbeeld & Co. Inc., a Canadian company that provides research and advisory services for gold to investors. Total transaction value is estimated to be $233 thousand.

Financials (Closed)

           The Co-operators has Acquired Assurances Madelein

Co-operators General Insurance Company, a Canadian company that provides insurance and financial services to individuals and businesses, has acquired Assurances Madelein Inc., a Canadian company that provide insurance brokerage services. No transaction terms were released.

           Arthur J. Gallagher & has Acquired Jones Brown

Arthur J. Gallagher & Co. (NYSE:AJG), an American company that together with its subsidiaries, provides insurance brokerage, consulting, and third party claims settlement and administration services to entities in the United States and internationally, has acquired Jones Brown Inc., a VRG Capital Corp. backed Canadian company that provides insurance brokerage and strategic consulting services. No transaction terms were released.

           HUB International has Acquired Forum Risques et Assurance

HUB International Limited, an AlpInvest Partners B.V. and Hellman & Friedman LLC backed American company that provides insurance brokerage services, has acquired Forum Risques et Assurance Inc., a Canadian boutique insurance brokerage and risk management firm. No transaction terms were released.

           Mcdougall Insurance Brokers has Acquired Dusome Insurance

Mcdougall Insurance Brokers Limited, a Canadian company that provides insurance solutions to individuals and businesses, has acquired Dusome Insurance Group, a Canadian company that acts as an insurance broker. No transaction terms were released.

Information Technology (Announced)

           Vantage Data Centers to Acquire 4Degrés Colocation

Vantage Data Centers, LLC, an American company that provides data center solutions, has agreed to acquire 4Degrés Colocation Inc., a Canadian company that provides data center solutions for businesses and institutions in Quebec, Canada. Total transaction value is estimated to be $259 million.

           Sony Interactive Entertainment to Acquire Audiokinetic

Sony Interactive Entertainment LLC, an American company that develops, manufactures, and sells PlayStation, has agreed to acquire Audiokinetic Inc., an Investissement Québec and W Investments backed Canadian company that provides cross-platform audio solutions for the interactive media and gaming industries in Canada and internationally. No transaction terms were released.

           Comtech Telecommunications to Acquire Solacom Technologies

Comtech Telecommunications Corp. (NasdaqGS:CMTL), an American company that designs, develops, produces, and markets products, systems, and services for communications solutions, has agreed to acquire Solacom Technologies, Inc., a Coller Capital Ltd., Fonds de solidarité FTQ and Fonds régional de solidarité FTQ Outaouais backed Canadian company that provides communications solutions for public safety 9-1-1, homeland security, and similar markets in Canada and internationally. Total transaction value is estimated to be $43.9 million.

Information Technology (Closed)

           Quorum has Acquired Oasis Auto Complete

Quorum Information Technologies Inc. (TSXV:QIS), a Canadian information technology company that focuses on the automotive retail business in Canada and the United States, has acquired Oasis Auto Complete Systems Limited, a Canadian company that develops, installs, and supports software and hardware designed for automobile dealerships. Total transaction value is estimated to be $1.1 million.

           Volaris Group has Acquired Empresa 1

Volaris Group Inc., a Canadian company that designs and develops software for different industrial applications, has acquired Empresa 1 - Sistemas De Automacao E Comercio Ltd., a Brazilian company that develops hardware, software, and services as a solution for payment automation, access control, and fraud prevention. No transaction terms were released.

           Corel has Acquired Parallels

Corel Corporation, a Canadian company that offers graphics, productivity, and digital media software for customers in Canada and internationally, has acquired Parallels, Inc., an American company that provides virtualization technology and Mac management solutions for consumers, businesses, and service providers. No transaction terms were released.

           Cologix has Acquired COLO-D

Cologix, Inc., a Columbia Capital, L.P., Greenspring Associates, Inc. and vR Equity Partners backed American company that is an interconnection and data center company, has acquired COLO-D Inc, a Canadian company that. provides carrier-neutral colocation and business continuity services to customers in Quebec, the United States, and Europe. No transaction terms were released.

           Kaseya has Acquired ITG Software

Kaseya Limited, an American company that provides cloud IT management solutions for IT departments and managed service providers, and small to midsized businesses, has acquired ITG Software Inc., a Canadian company that provides a software-as-a-service IT documentation platform for managed service providers and IT service providers worldwide. No transaction terms were released.

           Valsoft Corp has Acquired SARS Software Products

Valsoft Corp, a Canadian company that is a principal investment firm, has acquired SARS Software Products, Inc., a Valsoft Corp backed American company that develops software for higher education market. No transaction terms were released.

           Ocean Group has Acquired Techsol Marine

Ocean Group Inc., a Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ backed Canadian company that provides integrated marine services for ship owners and agents in Quebec and Eastern Canada, has acquired Techsol Marine, Inc., a Canadian company that provides technical solutions for the marine industry. No transaction terms were released.

           M/C Partners has Acquired Gossamer Threads

M/C Partners, an American company that is a private equity and venture capital firm specializing in early stage, mid stage, later stage, turnarounds, growth capital, and buyouts financing in the emerging segments, has acquired Gossamer Threads Inc., a M/C Partners backed Canadian company that offers solutions like consulting, hosting, development, and applications. No transaction terms were released.

           The Co-operators Group has Acquired Technicost

The Co-operators Group Limited, a Canadian company that together with its subsidiaries, provides insurance and financial services, has acquired Technicost Inc., a Canadian company that provides credit management software solutions, including loan origination systems (LOS) to credit unions. No transaction terms were released.

           Sunwire has Acquired Northern Voice & Data Network Services

Sunwire Inc., a Canadian telecommunications company offering services such as business and residential internet, has acquired Northern Voice & Data Network Services Inc., a Canadian company provides cloud services such as managed IT and off-site backups. No transaction terms were released.

Real Estate (Announced)

           iTokk to Acquire Water Street Profile Services

iTokk, Inc. (OTCPK:IKTO), a Canadian company that does not have significant operations, has agreed to acquire Water Street Profile Services Inc., a Canadian company doing business as The Profile Coworking Business Club, which owns and operates office co-working spaces. Total transaction value is estimated to be $5.3 million.

Real Estate (Closed)

           Greater Property Group has Acquired Len T. Wong & Associates

The Greater Property Group, a Canadian company that operates as a residential real estate brokerage company, has acquired Len T. Wong & Associates Real Estate, a Canadian company that operates as a real estate broker. No transaction terms were released.

Other (Closed)

           Grey Wolf has Acquired Veterinary Healthcare Solutions

Grey Wolf Animal Health Inc., a Canadian specialty animal health company that provides products, solutions and services that meet the underserved needs of veterinarians, pets and clinics across Canada and around the world., has acquired Veterinary Healthcare Solutions Inc., a Canadian company providing products to support the Canadian veterinary channel. No transaction terms were released.

           Blue Ant Media has Acquired The Baby Shows

Blue Ant Media Inc., a Difference Capital Financial Inc., Kensington Capital Partners Limited, TerraNova Partners LP, Relay Ventures, and Gibraltar & Company backed Canadian company that owns and operates various media channels, has acquired The Baby Shows, a Canadian company providing premium pregnancy and early parenting consumer shows, offering goods and services dedicated to guiding new parents through pregnancy and the first few years of child care. No transaction terms were released.

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