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Canadian M&A Market Recap: Week Ended June 29th

  • Posted By: Justin McKenzie, Oriel Cohen, Andrew Schmidt, Shelby Canvin, and Paris Aden

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Market Update

Forty-two Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 10.5% lower than the comparable period in 2017. The Canadian dollar appreciated by 1.02 cents, ending the week at 76 cents. The TSX overperformed the S&P 500 by 1.6% in U.S. dollar terms. WTI Crude oil rose by 5.7%, ending the week at $72.46 per barrel.

According to The Lead Left, the leveraged loan middle market remains insulated and heated despite some modest investor pushback on pricing and terms stemming from a voluminous supply market. No pushback has been indicated by lenders on smaller deals as the middle market remains full of capital and asset managers are eager to put money to work.


Valitas Insights: A Healthy Economy That’s Stuck in Neutral

Back in early-March, we teamed up with Pierre Ouimet, Head Investment Strategist at UBS Bank (Canada), to put together our Annual Outlook on the Canadian economy. The report covered a range of topics pertinent to Canadian business owners, from ongoing NAFTA negotiations to the sweeping reform brought about by the U.S. Tax and Jobs Act. A few months later, we’ve checked back in with Mr. Ouimet to discuss the quarter that was, while also considering issues that stand to impact the rest of 2018. Read our full article here to find out more.

Canadian M&A Transactions[i]

Energy (Announced)

Wolverine Energy and Infrastructure to Acquire PetroMaroc Corp

Wolverine Energy and Infrastructure Inc., a Canadian company that provides integrated oilfield services that include construction, rentals, transportation, heavy equipment rentals, catwalk rentals, computer torque monitoring and inspection, has agreed to acquire PetroMaroc Corporation plc (TSXV:PMA), a Canadian company that engages in the acquisition, exploration, and development of oil and gas properties in Morocco. No transaction terms were released.

Arrow Exploration to Acquire Tapir Block in Llanos Basin

Arrow Exploration Ltd., a Canadian company that engages in the acquisition, exploration, and development of petroleum and natural gas projects, has agreed to acquire Tapir Block in Llanos Basin, a Colombian company that comprises of oil and gas properties. Total transaction value is estimated to be $12.9 million.

Consumer Discretionary (Closed)

Louis Garneau Sports has Acquired Hi Fibre Textiles

Louis Garneau Sports Inc., a Canadian company that manufactures and sells cycling, triathlon, and running apparel and accessories to athletes, has acquired Hi Fibre Textiles Ltd., a Canadian company that engages in the manufacturing and distribution of running, bike, and triathlon clothing. No transaction terms were released.

Consumer Staples (Closed)

Diamond Estates Wines & Spirits has Acquired Backyard Vineyards

Diamond Estates Wines & Spirits Inc. (TSXV:DWS), a Canadian company that produces, sells, and exports wines and spirits internationally, has acquired Backyard Vineyards Inc., a Canadian company that produces wines and hosts private tasting events. Total transaction value is estimated to be $3.00 million.

Healthcare (Announced)

Abattis Bioceuticals to Acquire XLABS Therapeutics

Abattis Bioceuticals Corp. (OTCPK:ATTB.F), a Canadian biotechnology company that researches, develops, licenses, and markets ingredients and formulas for use in the biopharma, nutraceutical, cosmetic, and animal nutrition markets in Canada, has agreed to acquire XLABS Therapeutics Inc., a Canadian company that operates a medical cannabis research facility. Total transaction value is estimated to be $2.50 million.

Marapharm Ventures to Acquire Full Spectrum Medicinal

Marapharm Ventures Inc. (DB:2M0), a Canadian development stage medical marijuana company, focused on operating in the medical and recreational marijuana industry, has agreed to acquire Full Spectrum Medicinal Inc., a Canadian company that specializes in the production of organic cannabis. No transaction terms were released.

Information Technology (Announced)

Baylin Technologies to Acquire Alga Microwave

Baylin Technologies Inc. (TSX:BYL), a Canadian company that engages in the research, development, manufacturing, and sale of a range of antennas and communications solutions for the mobile, networking, small cell, DAS, and base station markets primarily in the North American and Asia Pacific regions, has agreed to acquire Alga Microwave Inc., a Canadian company that manufactures active and passive radio frequency/microwave components for use in communications systems. Total transaction value is estimated to be $27.0 million, implying a 7.3x EBITDA multiple and a 1.73x revenue multiple.

Information Technology (Closed)

Corel has Acquired Gravit Designer

Corel Corporation, a Canadian company that offers graphics, productivity, and digital media software for customers internationally, has acquired Gravit Designer, a German company that offers a full-featured, free vector design application. No transaction terms were released.

Other (Announced)

Metrics Technologies to Acquire Montana Systems

Metrics Technologies Inc., a Canadian company that provides cloud-based simulation and verification management solutions, has agreed to acquire Montana Systems, a Canadian company that is a manufacturer of hardware simulation acceleration tools. No transaction terms were released.

Pomdial to Acquire CidreCo Group

Pomdial Inc., a Canadian company that offers marketing services for beverage and the agri-food sector while also developing gingras apple vinegars, has agreed to acquire CidreCo Group Inc., a Canadian company that is a manufacturer and distributer of ice ciders. No transaction terms were released.

KGPCo to Acquire Hutton Communications of Canada

KGPCo, an American company that operates as a communication product distribution and service solution provider in the telecommunication industry, has agreed to acquire Hutton Communications of Canada Inc., a company that provides various communication services across all vertical markets. No transaction terms were released.

Other (Closed)

Olymel has Acquired Aliments Triomphe

Olymel S.E.C. / L.P., a Canadian company that slaughters, processes, and distributes pork, poultry, turkey, and chicken products to retail, food service, and industrial customers internationally, has acquired Aliments Triomphe Inc., a Canadian company that manufactures a wide variety of food products to retail clients, hotels and restaurants internationally. 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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