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Canadian M&A Market Recap: Week Ended July 13th

  • Posted By: Parsa Pouyan, Daniel Borg, Justin McKenzie, Lucas Kunicyn and Paris Aden

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  • Comments: 0

 

Market Update

Fifty-three Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 8.1% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.48 cents, ending the week at 76 cents. The TSX underperformed the S&P 500 by 1% in U.S. dollar terms. WTI Crude oil fell by 2.3%, ending the week at $69.95 per barrel.

According to The Lead Left, Middle market sponsored syndicated loan activity was pretty solid in 2Q18 reaching US$20.9bn, similar to 1Q18 issuance of $21.7bn. However, refinancings and repricings drove close to 40% of activity in 1Q18 and 2Q18 which is much higher than the mid 20% area in 2017. Furthermore, compared to the leveraged loan market which is seeing ballooning supply with regards to M&A activity,

Canadian M&A Transactions[i]

Energy (Closed)

Vertex Resource Group has Acquired Three Star Trucking

Vertex Resource Group Ltd. (TSXV:VTX), a 32 Degrees Capital backed Canadian company that provides environmental and industrial services in North America, has acquired Three Star Trucking Ltd., a Canadian company that offers crude oil and related oilfield liquids' hauling services for the Bakken-area crude oil producers. Total transaction value is estimated to be $11.8 million, reflecting a 2.4x EBITDA multiple.

Materials (Closed)

Samuel, Son & Co. has Acquired Sierra Aluminum Company

Samuel, Son & Co., a Canadian company that engages in the processing and distribution of metals in North America, has acquired Sierra Aluminum Company, a U.S.-based manufacturer of standard and custom aluminum extrusions. No transaction terms were released.

Industrials (Announced)

Jenoptik AG to Acquire Prodomax Automation

Jenoptik AG (XTRA:JEN), a Capricorn Venture Partners and Templeton Investment Counsel backed German company that operates as an integrated photonics company internationally, has agreed to acquire Prodomax Automation Ltd., a BDC Venture Capital and Kensington Capital Partners backed Canadian company that designs, manufactures, and constructs automated manufacturing solutions. No transaction terms were released.

Air NorTerra to Acquire Bradley Air Services

Air NorTerra Inc., an Inuvialuit Development Corporation backed Canadian company that provides passenger and cargo services in Northern Canada, has agreed to acquire Bradley Air Services Limited, a Canadian company that provides scheduled passenger and cargo services. No transaction terms were released.

Consumer Discretionary (Announced)

PowerBand Solutions to Acquire LeadSource Canada

PowerBand Solutions Inc. (TSXV:PBX), a Canadian company that provides Web-based auction and financing solutions for the automotive and other industries, has agreed to acquire LeadSource Canada, a company that operates as an automotive private sale event marketing company. Total transaction value is estimated to be $100 thousand.

Michelin to Acquire Camso

Michelin (ENXTPA:ML), a French company that manufactures, distributes, and sells tires worldwide, has agreed to acquire Camso Inc., a Desjardins Business Capital régional et coopératif, Caisse de dépôt et placement du Québec and Fonds régional de solidarité FTQ Estrie backed Canadian company that manufactures and distributes pneumatic, airless, solid tires, tracks, driven and trailed conversion track systems, and OEM undercarriages. Total transaction value is estimated to be $1.45 billion, reflecting a 12.5x EBITDA multiple and a 1.74x revenue multiple.

Consumer Discretionary (Closed)

InteraXon has Acquired Meditation Studio

InteraXon Inc., an Epic Capital Management, Bridge Builders Collaborative, Export Development Canada, Build Ventures, and Flextronics Lab IX, backed Canadian company that designs and develops brainwave-controlled products and experiences, has acquired Meditation Studio, LLC, a U.S.-based company that is a publisher of meditation audio through their app. No transaction terms were released.

First Capital Realty has Acquired The Hazelton Hotel

First Capital Realty Inc. (TSX:FCR), a Canadian company that acquires, develops, redevelops, owns, and manages urban retail-centered real estate properties in Canada, has acquired The Hazelton Hotel, a Canadian company that owns and operates a hotel. Total transaction value is estimated to be $44.4 million.

Healthcare (Announced)

FSD Pharma to Acquire Atlantic Island Cannabis

FSD Pharma Inc. (CNSX:HUGE), a Canadian company that operates as a cannabis company, has agreed to acquire Atlantic Island Cannabis Inc., a Canadian producer of legal cannabis in Newfoundland and Labrador. Total transaction value is estimated to be $6.5 million.

RadicaLogic Technologies to Acquire Datix

RadicaLogic Technologies, Inc., a Canadian company that develops healthcare software for healthcare networks, hospitals, and others globally, has agreed to acquire Datix Limited, a TA Associates Management and Five Arrows Managers SAS backed U.K.-based developer of healthcare incidents, patient safety, and risk management software internationally. No transaction terms were released.

Canadian Silver Hunter to Acquire MariGrow

Canadian Silver Hunter Inc. (TSXV:AGH.H), a Canadian company that engages in the exploration and development of base and precious metal mineral properties in Canada, has agreed to acquire MariGrow Inc., a Canadian producer of medical and recreational cannabis and cannabis products. No transaction terms were released.

Healthcare (Closed)

Metamaterial Technologies has Acquired Medical Wireless Sensing

Metamaterial Technologies Inc., an Innovacorp and Radar Capital backed Canadian company that designs, develops, and commercializes optical filters and metamaterial-based systems, has acquired Medical Wireless Sensing Ltd, a U.K.-based manufacturer of wireless medical devices. No transaction terms were released.

Financials (Closed)

HUB International has Acquired Independent Financial Concepts Group

HUB International Limited, a AlpInvest Partners and Hellman & Friedman backed U.S. company that provides insurance brokerage services, has acquired Independent Financial Concepts Group Ltd., a Canadian company that operates as a managing general agency which provides financial advisory and insurance brokerage services. No transaction terms were released.

Park Place Financial has Acquired Terry G. Windrem Insurance Agencies

Park Place Financial Inc., a Canadian company that offers financial planning, risk management, and wealth management services, has acquired Terry G. Windrem Insurance Agencies Inc., a Canadian company that provides wealth and risk management services to business owners and professionals. No transaction terms were released.

Information Technology (Announced)

Morneau Shepell to Acquire LifeWorks

Morneau Shepell Ltd, a Canadian company that operates as a human resource consulting and technology company, has agreed to acquire LifeWorks Corporation Ltd., a U.K.-based company that provides employee engagement and wellbeing solutions. Total transaction value is estimated to be $427 million, reflecting a 11.2x EBITDA multiple and a 3.9x revenue multiple.

Promob Software Solutions to Acquire 20-20 Technologies

Promob Software Solutions, a Brazilian developer of software solutions for virtual interiors and business management applications, has agreed to acquire 20-20 Technologies Inc., a Golden Gate Capital backed Canadian company that develops, sells, and licenses desktop and Web-based computer-aided design, sales, and manufacturing software. No transaction terms were released.

Information Technology (Closed)

IT Cloud Solutions has Acquired Cloud IT

IT Cloud Solutions Inc., a Canadian company that offers IT cloud solutions, including cloud backup services, has acquired Cloud IT, a Canadian company that provides IT consultation, training, technology, implementation, and process optimization. No transaction terms were released.

Other (Announced)

Atlas Engineered Products to Acquire Satellite Truss

Atlas Engineered Products Ltd. (TSXV:AEP), a Canadian company that engineers, manufactures and sells trusses and engineered wood products, has agreed to acquire Satellite Truss Ltd., a Canadian company that designs and supplies roof trusses and engineered floor joists. Total transaction value is estimated to be $1.2 million, reflecting a 0.8x revenue multiple.

Other (Closed)

Vision 2000 Travel Group has Acquired Voyages Cortravco

Vision 2000 Travel Group, Inc., a BMO Capital Partners backed Canadian company that provides customized travel programs for clients, has acquired Voyages Cortravco Inc., a Canadian company that provides agency services and travel tools. No transaction terms were released.


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

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