Value Unleashed

Market Update
One hundred and twenty-eight Canadian M&A Transactions closed this past week. Year to date, the M&A closed deal count is 8.2% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.41 cents, ending the week at 76 cents. The TSX underperformed the S&P 500 by 0.4% in U.S. dollar terms. WTI Crude fell by 1.2%, ending the week at $71.57 per barrel.

According to The Lead Left, acquisition loan financing reached a record high of US$194 billion in Q2 2018, although this was mostly due to a number of massive deals. M&A volume in the first half of 2018 also reached a record high of US$363.5 billion.

Canadian M&A Transactions[i]

Energy (Closed)

CEDA International has Acquired Breakthrough Oilfield Services

CEDA International Corporation, an OMERS Private Equity backed Canadian company that provides industrial maintenance, turnaround, and construction services, has acquired Breakthrough Oilfield Services Ltd., a Canadian provider of oil field services. No transaction terms were released.

Materials (Announced)

I.M.C. Holdings to Acquire Navasota Resources

I.M.C. Holdings Ltd., an Israeli company that produces, distributes, and cultivates pharmaceutical-grade cannabis and cannabis-based products, has agreed to acquire Navasota Resources Inc., a Canadian natural resources company. No transaction terms were released.

Urban Select Capital to Acquire Hard Rock Lithium

Urban Select Capital Corporation (TSXV:CH), a Canadian private equity firm specializing in buyouts, later stage and growth capital investments, has agreed to acquire Hard Rock Lithium Corp., a Canadian lithium exploration company. Total transaction value is estimated to be $2 million.

Majesta Minerals to be Acquired by an Undisclosed Buyer

Majesta Minerals Inc., a Canadian uranium exploration company that focuses on the exploration and development of uranium deposits has agreed to be acquired by an undisclosed buyer, who purchased a minority stake. No transaction terms were released.

Materials (Closed)

Reid Canada has Acquired Assets of Deltapac Packaging

Reid Canada Inc., a manufacturer and marketer of plastic products has acquired Deltapac Packaging Inc., a Canadian manufacturer of plastic bottles for the specialty chemical, cosmetic, food, and pharmaceutical industries. No transaction terms were released.

Industrials (Announced)

Rocky Mountain Dealerships to Acquire John Bob Farm Equipment

Rocky Mountain Dealerships Inc. (TSX:RME), a Canadian company that sells, leases, and provides support services for agriculture and industrial equipment, has agreed to acquire John Bob Farm Equipment, a Canadian dealer of farm equipment. Total transaction value is estimated to be $13.4 million, implying a 5.0x EBITDA multiple and a 0.4x revenue multiple.

Industrials (Closed)

Big Freight Systems has Acquired Kelsey Trail Trucking

Big Freight Systems Inc., a Canadian company that provides truck transportation, logistics, and warehousing services, has acquired Kelsey Trail Trucking Ltd., a Canadian company that provides truckload and LTL services. No transaction terms were released.

Park Lawn has Acquired Hansons Arbor Funeral Chapels & Crematorium

Park Lawn Corporation (TSX:PLC), a Canadian company that provides goods and services associated with the disposition and memorialization of human remains, has acquired Hansons Arbor Funeral Chapels & Crematorium Inc., a Canadian funeral services company. Total transaction value is estimated to be $2.3 million.

CellCube Energy Storage Systems has Acquired Pure Vanadium

CellCube Energy Storage Systems Inc. (CNSX:CUBE), a Canadian producer of vanadium and vanadium electrolytes for the battery storage industry, has acquired Pure Vanadium Corp., a Canadian developer and manufacturer of vanadium electrolytes for vanadium redox flow batteries used in grid scale energy storage. Total transaction value is estimated to be $187 thousand.

Wolseley Canada has Acquired AMRE Supply Company

Wolseley Canada Inc., a Canadian distributor of plumbing, hydronic, HVAC/R, and PVF products and solutions, has acquired AMRE Supply Company Ltd., a Canadian supplier of plumbing, HVAC, appliance, and electrical and property maintenance parts. No transaction terms were released.

Consumer Discretionary (Announced)

Cirque du Soleil to Acquire VStar Entertainment Group

Cirque du Soleil Inc., a TPG Capital and Caisse de dépôt et placement du Québec backed Canadian company that provides live artistic entertainment services, has agreed to acquire VStar Entertainment Group LLC, an AUA Private Equity Partners backed American company that produces family entertainment. No transaction terms were released.

Consumer Discretionary (Closed)

IMImobile Canada has Acquired Impact Mobile

IMImobile Canada Inc. (LON:IMO), a British company that provides software and solutions services has acquired Impact Mobile Inc., a Canadian company that provides services to brands, carriers, and agencies to support their mobile marketing needs globally. Impact Mobile was a subsidiary of Dealnet Capital Corporation. Total transaction value is estimated to be $27.5 million, implying a 6.9x EBITDA multiple and a 2.6x revenue multiple.

National Public Relations has Acquired Octane Strategies

National Public Relations Inc., a Canadian company that provides public relations services, has acquired Octane Strategies Inc., a Canadian company that engages in public relations and public affairs. No transaction terms were released.

Dana Incorporated has Acquired TM4

Dana Incorporated (NYSE:DAN), an American provider of drive and motion products, sealing solutions, thermal-management technologies, and fluid-power products to vehicle and engine manufacturers, has acquired TM4, Inc., a Canadian designer and producer of customized electric drivetrains for electric and hybrid vehicle manufacturers, and generators for wind turbine and gen-set manufacturers. TM4 was a subsidiary of Hydro-Quebec. Total transaction value is estimated to be $165 million.

Comvest Partners has Acquired Spinrite

Comvest Partners, an American private equity firm, has acquired Spinrite L.P., a TorQuest Partners backed Canadian manufacturer and distributor of craft yarn products. No transaction terms were released.

Consumer Staples (Closed)

Marine Harvest has Acquired Northern Harvest Sea Farms

Marine Harvest ASA (OSE:MHG), a Norwegian producer of farmed Atlantic salmon products, has acquired Northern Harvest Sea Farms Inc., a Canadian producer of farmed Atlantic salmon. Total transaction value is estimated to be $315 million.

Healthcare (Announced)

Evergreen Pacific Insurance to Acquire Synergy Health Services

Evergreen Pacific Insurance Corporation, a Canadian financial services holding company, has agreed to acquire Synergy Health Services Inc., a Canadian provider of natural healthcare and exploration services. No transaction terms were released.

Leviathan Cannabis Group to Acquire Pulse Rx

Leviathan Cannabis Group Inc. (CNSX:EPIC), a Canadian company that operates as cannabis focused, marketing services agency, has agreed to acquire Pulse Rx Inc., a Canadian company that offers pharmacy services for long term care and retirement homes. Total transaction value is estimated to be $5.50 million, implying a 2.2x revenue multiple.

KDA Group to Acquire CanNorth Medic

KDA Group Inc. (TSXV:KDA), a Canadian company that provides pharmacy personnel replacement and vocational training services, has agreed to acquire CanNorth Medic Inc., a Canadian manufacturer and processor of medical cannabis. No transaction terms were released.

Kaneh Bosm BioTechnology to Acquire EU Cannabis

Kaneh Bosm BioTechnology Inc. (CNSX:KBB), a Canadian company that focuses on the production of cannabis, and other biomedical and therapeutic plants, has agreed to acquire EU Cannabis Corp., a Canadian company that cultivates, manufactures, distributes and exports industrial hemp and cannabidiol derived extracts. Total transaction value is estimated to be $327.2 thousand.

Healthcare (Closed)

Kaneh Bosm BioTechnology has Acquired Marathon Global

Kaneh Bosm BioTechnology Inc. (CNSX:KBB), a Canadian company that focuses on the production of cannabis, and other biomedical and therapeutic plants in Canada, has acquired Marathon Global Inc., a Canadian company that procures and distributes medical cannabis products. Total transaction value is estimated to be $8.5 million.

Financials (Announced)

Madison Dearborn Partners to Acquire Navacord

Madison Dearborn Partners LLC., an American private equity firm, has agreed to acquire Navacord Inc., a Canadian company that provides insurance brokerage and risk management services. No transaction terms were released.

Information Technology (Announced)

GFT Technologies SE to Acquire V-NEO

GFT Technologies SE (XTRA:GFT), a German company that provides information technology consulting and solutions for retail and investment banking clients, has agreed to acquire V-NEO Inc., a Canadian company that provides information technology consulting services to the insurance industry. No transaction terms were released.

Information Technology (Closed)

Maru/Blue Canada has Acquired Tú Cuentas

Maru/Blue Canada Inc., a Canadian company that provides global data connections for agencies, brands, and market research firms, has acquired Tú Cuentas LLC, an American company that provides targeted Hispanic research services. No transaction terms were released.

Telecommunication Services (Announced)

BCE to Acquire Axia NetMedia

BCE Inc. (TSX:BCE), a Canadian telecommunications company has agreed to acquire Axia NetMedia Corp., a Canadian company that owns, operates, and sells services over fiber optic communications networks. No transaction terms were released.

Real Estate (Announced)

Purplebricks Group to Acquire ComFree Commonsense Network

Purplebricks Group PLC. (AIM:PURP), a British company that engages in estate agency business, has agreed to acquire ComFree Commonsense Network Inc., a Canadian company that provides real estate brokerage services in Canada. ComFree Commonsense Network is a subsidiary of Yellow Pages (TSX:Y). Total transaction value is estimated to be $51 million, implying a 12.1x EBITDA multiple and a 1.1x revenue multiple.

Real Estate (Closed)

Fronsac Real Estate Investment Trust has Acquired Odacité Mercier

Fronsac Real Estate Investment Trust (TSXV:GAZ.UN), a Canadian open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties, has acquired Odacité Mercier LP, a Canadian owner and operator of commercial properties. Total transaction value is estimated to be $3.51 million.

Other (Closed)

Crawford & Company has Acquired Cherrie Griffith

Crawford & Company (Canada) Inc., a Canadian provider of claims management services to risk managers, employers, and insurers, has acquired Cherrie Griffith Ltd., a Canadian provider of risk and claims services. No transaction terms were released.