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Canadian M&A Market Recap: Week Ended July 27

  • Posted By: Nicholas Ahwai-Chang, Lucas Kunicyn, Ryan Maglalang, Shelby Canvin, and Paris Aden

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Market Update

Forty-seven Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 7.0% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.45 cents, ending the week at 77 cents. The TSX underperformed the S&P 500 by 0.3% in U.S. dollar terms. WTI Crude oil rose by 0.6%, ending the week at $68.69 per barrel.

According to The Lead Left, unitranche volume rose to it’s highest level in 2Q18 since LPC began tracking this facility. 2Q18 issuance soared to US $8.67 billion, up a substantial 178% from 1Q18’s low levels. Middle market lenders financed larger deals in 2Q18 which also was a contributor to the uptick in unitranche volume. The average deal size jumped to US $208 million in 2Q18, up from US $117 million in 1Q18.

Canadian M&A Transactions[i]

Energy (Announced)

Canadian Natural Resources to Acquire Laricina Energy

Canadian Natural Resources Limited (TSX:CNQ), a Canadian company that explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids, has agreed to acquire Laricina Energy Ltd., a Canada Pension Plan Investment Board32 Degrees CapitalKorea Investment Corporation, and Priviti Capital Corporation backed Canadian company that engages in the exploration, development, and production of bitumen in Western Canada. Total transaction value is estimated to be $95 million.

Hi-Crush Partners to Acquire FB Industries

Hi-Crush Partners LP (NYSE:HCLP), an American company that together with its subsidiaries, provides proppant and logistics solutions to the energy industry in North America, has agreed to acquire FB Industries Inc., a Canadian company that designs, develops, manufactures, and markets silo-based frac sand management systems primarily for the oil and gas industry. Total transaction value is estimated to be $79 million.

Gear Energy to Acquire Steppe Resources

Gear Energy Ltd. (TSX:GXE), a Canadian company that engages in acquiring, exploring, developing, and holding interests in petroleum and natural gas properties and assets in Canada, has agreed to acquire Steppe Resources Inc., a Priviti Capital Corporation backed Canadian company that is based in Calgary, Canada. Total transaction value is estimated to be $79 million.

Materials (Announced)

Newmont Mining to Acquire Galore Creek Mining

Newmont Mining Corporation (NYSE:NEM), an American company that together with its subsidiaries, operates in the mining industry, has agreed to acquire Galore Creek Mining Corporation, a Canadian company that offers metal mining and exploration services. Total transaction value is estimated to be $360 million.

Consumer Staples (Announced)

Emblem to Acquire Natura Naturals

Emblem Corp. (TSXV:EMC), a Canadian company that produces, distributes, and sells medical cannabis and cannabis derivatives in Canada, has agreed to acquire Natura Naturals Inc., a Canadian company that engages in the cultivation of cannabis. Total transaction value is estimated to be $68 million.

Target Capital to Acquire 51st Parallel

Target Capital Inc. (TSXV:TCI), a Canadian private equity and venture capital firm specializing in acquisitions, start-ups, early stage, and buyout companies, has agreed to acquire 51st Parallel Inc., a Canadian company that owns and operates a greenhouse for growth, cultivation, and production of recreational cannabis. No transaction terms were released.

PhyeinMed to Acquire Cannacure

PhyeinMed Inc., a Canadian company that cultivates and produces cannabis for medical purposes, has agreed to acquire Cannacure Corporation, a Canadian company that produces cannabis for medical purposes. Total transaction value is estimated to be $39 million.

Consumer Staples (Closed)

La Maison Simons has Acquired Rituels.ca

La Maison Simons Inc., a Canadian company that operates apparel retail stores, has acquired Rituels.ca, a Canadian company that offers traditional shaving products, personal care products, and accessories for men. No transaction terms were released.

Financials (Announced)

Dixie Brands to Acquire Academy Explorations

Dixie Brands Inc., an American company that manages licenses and intellectual property of Dixie Elixirs & Edibles, has agreed to acquire Academy Explorations Limited, a Canadian company that strategically seeks to invest in or merge with other corporations. No transaction terms were released.

Information Technology (Closed)

GCR has Acquired MB3 Technologies

GCR Inc., an American company that provides consulting services and technology solutions to corporations, governments, airports, utilities, and organizations worldwide, has acquired MB3 Technologies Inc., a Canadian company that develops software for emergency grants management. 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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