Value Unleashed

Market Update
Thirty-six Canadian M&A Transactions closed this past week. Year to date, the M&A closed deal count is 7.4% lower than the comparable period in 2017. The Canadian dollar depreciated by 1.38 cents, ending the week at 76 cents. The TSX underperformed the S&P 500 by 1.1% in U.S. dollar terms. WTI Crude fell by 1.4%, ending the week at $64.85 per barrel.

According to The Lead Left, debt capital markets are looking favourably at M&A demonstrated by a surge in large, transformative acquisitions. Total M&A transaction volume is up 39% year over year, the highest since the same period in 2007. The loan markets backed over US$200 billion in Q2 2018.

Canadian M&A Transactions[i]

Energy (Announced)

Junex to Acquire Cuda Energy

Junex Inc. (TSXV:JNX), a Canadian company that operates as a junior oil and gas exploration company, has agreed to acquire Cuda Energy Inc., a Canadian company that offers oil and gas exploration and production services. No transaction terms were released.

Toscana Energy Income to Acquire Cortona Energy

Toscana Energy Income Corporation (TSX:TEI), a Canadian oil and gas producer, has agreed to acquire Cortona Energy Ltd., a Canadian oil and gas developer. No transaction terms were released.

Materials (Announced)

Orford Mining to Acquire Condor Precious Metals

Orford Mining Corporation (TSXV:ORM), a Canadian mineral resource company that focuses on the acquisition, exploration, and evaluation of base and precious metal assets, has agreed to acquire Condor Precious Metals Inc., a Canadian gold mining and exploration services company. Total transaction value is estimated to be $1.1 million.

Materials (Closed)

Mercury Plastics has Acquired Western Concord Manufacturing

Mercury Plastics Inc., an American thermoplastics company, has acquired Western Concord Manufacturing Limited, a Canadian company that manufactures flexible packaging products. No transaction terms were released.

Industrials (Announced)

Private Buyer to Acquire Rokstad Power

Rokstad Power Corporation, a First West Capital backed Canadian company that provides power line construction and maintenance services will be acquired. No transaction terms were released.

Industrials (Closed)

CellCube Storage Systems has Acquired Hillcroft Consulting

CellCube Storage Systems Inc., a Canadian company that provides electrical equipment and systems, has acquired Hillcroft Consulting Ltd., a U.K. company that designs and manufactures temporary and mobile power products for the construction industry. Total transaction value is estimated to be $300 thousand.

Davis-Standard has Acquired Brampton Engineering

Davis-Standard, LLC, an Onex Corporation, ONCAP, and Swift River Investments backed American company that designs, manufactures, and supplies plastics, rubber processing equipment, and extrusion technology, has acquired Brampton Engineering, Inc., a Canadian company that designs and engineers blown film lines for barrier applications in the food, medical, and industrial packaging industries. No transaction terms were released.

Consumer Discretionary (Closed)

Telaria has Acquired SlimCut Media Canada

Telaria, Inc. (NYSE:TLRA), an American software company that operates a platform to monetize and manage premium video content across various Internet-connected screens and devices has acquired SlimCut Media Canada Inc., a company that offers video and social advertising solutions for online publishers. No transaction terms were released.

Consumer Staples (Announced)

Olymel to Acquire Pinty's Delicious Foods

Olymel L.P., a Canadian company that processes, and distributes pork, poultry, turkey, and chicken products to retail, food service, industrial and export markets, has agreed to acquire Pinty's Delicious Foods Inc., a Canadian company that produces and supplies fresh and frozen chicken products to the retail and food service industry. No transaction terms were released.

Consumer Staples (Closed)

Dane Creek Capital has Acquired Spring Meadows Natural Pet Food

Dane Creek Capital, a Canadian private equity firm focused on pet industry investments in small to mid-size businesses and entrepreneurs, has acquired Spring Meadows Natural Pet Food, a Canadian manufacturer of frozen raw pet food. No transaction terms were released.

Healthcare (Announced)

Aurora Cannabis to Acquire Anandia Laboratories

Aurora Cannabis Inc. (TSX:ACB), a Canadian producer and distributor of medical marijuana products, has agreed to acquire Anandia Laboratories Inc., a CannaRoyalty backed Canadian company that develops products through a combination of genomics, plant breeding, and pharmaceutical science. Total transaction value is estimated to be $115 million.

Healthcare (Closed)

Medline Canada has Acquired Dufort et Lavigne

Medline Canada Corporation, a company that develops, manufactures, and distributes various medical products for the hospital and alternate care markets, has acquired Dufort et Lavigne Ltée, a Canadian company focused on the wholesale distribution of surgical and other medical instruments, apparatus, and equipment. No transaction terms were released.

Orion Biotechnology Canada has Acquired K2 Biomedical

Orion Biotechnology Canada Ltd, a company that researches, develops, and manufactures products based on novel formulations for treatment and prevention of chronic illnesses and diseases, has acquired K2 Biomedical Sp. z o.o., a Polish company that conducts research on genomics, proteomics and pharmacology. No transaction terms were released.

Prevent Health Care International to Acquire Genix Pharmaceutical

Prevent Health Care International Limited, a Canadian healthcare management company, has agreed to acquire Genix Pharmaceutical Corp., a Canadian developer of pharmaceutical products. No transaction terms were released.

Information Technology (Closed)

Geotab has Acquired CrossChasm Technologies

Geotab Inc., a Canadian developer and manufacturer of fleet management and vehicle tracking products and technology, has acquired CrossChasm Technologies Inc., a Canadian designer and manufacturer of electric vehicle telematics. No transaction terms were released.

Microsoft has Acquired Compulsion Games

Microsoft Corporation (NasdaqGS:MSFT), an American company that develops, licenses, and supports software products, services, and devices, has acquired Compulsion Games Inc., a Canadian video game developer. No transaction terms were released.

Utopya Innovations has Acquired WeWi Applied Research

Utopya Innovations Inc, a Canadian developer and manufacturer of mid-market smartphone devices, has acquired WeWi Applied Research Corporation, a Canadian telecom service provider. No transaction terms were released.

Other (Announced)

Ravenquest Biomed to Acquire Elephant Extracts

Ravenquest Biomed Inc. (CNSX:RQB), a Canadian company focused on the cannabis production, management services and consulting, and specialized research and development activities, has agreed to acquire Elephant Extracts Ltd., a Canadian developer and distributor of cannabis products. No transaction terms were released.

Other (Closed)

Skyservice Air Ambulance International has Acquired Parkview Air Medical

Skyservice Air Ambulance International Inc, a Canadian company that operates medical air transportation, has acquired Parkview Air Medical, a Canadian company that provides medical services in commercial air and ambulance medical transportation. No transaction terms were released.

Katerra has Acquired Michael Green Architecture

Katerra Inc., a Divco West Real Estate Services, Soros Fund Management, Tavistock Group and Canada Pension Plan Investment Board backed American company that provides product design and sourcing, procurement and supply-chain, logistics, and customer service to the construction industry, has acquired Michael Green Architecture Inc., a Canadian architecture firm focused on tall wood buildings and mass timber projects. No transaction terms were released.