Value Unleashed

Market Update

Forty-nine Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 5.8% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.63 cents, ending the week at 77 cents. The TSX underperformed the S&P 500 by 1.7% in U.S. dollar terms. WTI Crude oil fell by 4.9%, ending the week at $67.88 per barrel.

According to The Lead Left, secondary market oil and gas loan prices have climbed 137 bps this year as a result of the surprising $11 jump in oil prices. Oil and gas loans have rebounded from their 2016 lows with the average bid standing at 91.5 cents on the dollar.

Canadian M&A Transactions[i]

Energy (Closed)

Waterous Energy Fund has Acquired Cona Resources

Waterous Energy Fund, a Canadian private equity firm, has acquired Cona Resources Ltd. (TSX:CONA), a Canadian company that acquires, develops, and produces petroleum and natural gas reserves in Western Canada. Total transaction value is estimated to be $116 million, reflecting a 5.4x EBITDA multiple.

Materials (Closed)

ADDEV Materials has Acquired Profom

ADDEV Materials SAS, a French manufacturer and distributor of high performance materials, has acquired Profom Inc., a Canadian manufacturer of tapes, adhesive parts and gasket materials. No transaction terms were released.

Industrials (Announced)

Caisse de dépôt et placement du Québec and Ontario Teachers' Pension Plan Board to Acquire Techem

Caisse de dépôt et placement du Québec, a private equity firm, and the Ontario Teachers' Pension Plan Board, a private pension fund, has agreed to acquire Techem GmbH, a Macquarie Infrastructure and Real Assets backed German company that provides energy billing and management services for real estate. Total transaction value is estimated to be $6.96 billion.

Sproutly to Acquire SSM Partners

Sproutly Inc., a Quinsam Capital backed Canadian company that cultivates cannabis for medical purposes in the U.S, has agreed to acquire SSM Partners Inc., a Canadian company that engages in the research, commercialization, and formulation of technologies for the cannabis industry. No transaction terms were released.

Sproutly to Acquire Infusion Biosciences Canada

Sproutly Inc., has agreed to acquire Infusion Biosciences Canada Inc., a research and commercialization company for innovative, science-based cannabis technologies. No transaction terms were released.

Industrials (Closed)

People has Acquired Lane Quinn Benefit Consultants

People Corporation (TSXV:PEO), a Canadian company that provides group benefits, group retirement, and human resource services in Canada, has acquired Lane Quinn Benefit Consultants Ltd., a Canadian company that provides benefits and insurance consulting internationally. Total transaction value is estimated to be $25.4 million.

Virgil Holdings has Acquired Hospitality Careers Online

Virgil Holdings Inc., a U.S. company that owns and operates a career navigation and recruiting platform matching job seekers with employment opportunities and developmental resources, has acquired Hospitality Careers Online Inc., a Canadian company that provides online job postings for hotel, restaurant, food service, casino, and assisted living industries. Hospitality Careers Online was a subsidiary of DHI Group. Total transaction value is estimated to be $21.3 million.

Wesco Industrial Products and Bluff Manufacturing have Acquired Nordock

Wesco Industrial Products Inc., a Wincove Private Holdings backed U.S. manufacturer and distributor of material handling equipment, and Bluff Manufacturing Inc., a Wincove Private Holdings and Stonehenge Partners backed U.S-based provider of steel and aluminum boards and plates, warehouse safety equipment and steel structures internationally, have acquired Nordock Inc., a Canadian manufacturer of material handling equipment. No transaction terms were released.

Consumer Discretionary (Closed)

Bell Media Studios has Acquired Pinewood Toronto Studios

Bell Media Studios Inc., a Canadian company that produces original entertainment programs, has acquired Pinewood Toronto Studios Inc., an ROI Capital backed Canadian company that operates film production studios. Pinewood Toronto Studios was a subsidiary of Comweb, ROI Capital, and Castlepoint NUMA. No transaction terms were released.

Mavi Giyim Sanayi ve Ticaret has Acquired Mavi Jeans

Mavi Giyim Sanayi ve Ticaret A.S. (IBSE:MAVI), a Turkish apparel company, has acquired Mavi Jeans Inc., a Canadian distributor and wholesaler of women’s, children’s, and infant’s clothing and accessories. Mavi Jeans was a subsidiary of Kitsch Apparel. Total transaction value is estimated to be $3.98 million.

Consumer Staples (Announced)

Saputo to Acquire Shepherd Gourmet Dairy

Saputo Inc. (TSX:SAP), a Canadian producer, marketer, and distributor of dairy products internationally, has agreed to acquire Shepherd Gourmet Dairy Inc., a Canadian producer of cheese and yogurt. Total transaction value is estimated to be $100 million.

Consumer Staples (Closed)

Cooke Aquaculture has Acquired JC Seafood

Cooke Aquaculture Inc., a Canadian company that engages in the business of integrated aquaculture, has acquired JC Seafood Inc., a U.S. wholesaler and distributor of fresh, cured, and frozen fish and seafood. No transaction terms were released.

Healthcare (Announced)

Kaneh Bosm BioTechnology to Acquire 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 agreed to acquire Marathon Global Inc., a Canadian company that procures and distributes medical cannabis products. Total transaction value is estimated to be $8.5 million.

Healthcare (Closed)

ParcelPal Technology has Acquired 1FIVE2 Tech

ParcelPal Technology Inc. (CNSX:PKG), a Canadian company that operates an on-demand local delivery service application for sending packages to businesses, has acquired 1FIVE2 Tech Ltd., a Canadian company that develops online ordering solutions for medical cannabis dispensaries. No transaction terms were released.

Information Technology (Closed)

Converge Technology Partners has Acquired Blue Chip Tek

Converge Technology Partners Inc., a Canadian company that develops a national platform of regionally-focused IT infrastructure firms in North America, has acquired Blue Chip Tek Inc., a U.S. IT consulting company. No transaction terms were released.

FirePower Equity has Acquired Interwork Technologies

FirePower Equity Inc., a Canadian company that provides capital advisory and mergers and acquisition services, has acquired Interwork Technologies Inc., a Canadian distributor of data security, VoIP, and information management, storage, and communications solutions. No transaction terms were released.

Minerco has Acquired Priwen Systems

Minerco Inc. (OTCPK:MINE), a U.S. company that develops, produces, markets, and distributes a portfolio of specialty beverages, has acquired Priwen Systems Inc., a Canadian Bitcoin and Litecoin miner that also designs, manufacturers, and sells mining equipment for the graphics processing unit market. No transaction terms were released.

Other (Announced)

Leviathan Cannabis Group to Acquire Woodstock Biomed

Leviathan Cannabis Group Inc. (CNSX:EPIC), a Canadian company that operates as a consumer engagement and marketing services agency supporting a cannabis media platform, has agreed to acquire Woodstock Biomed Inc., a Canadian cannabis producer. Total transaction value is estimated to be $18.7 million.

Other (Closed)

Logistec has Acquired Pensacola Stevedore Company

Logistec Corporation (TSX:LGT.B), a Canadian cargo handler and distributor for marine, industrial, and municipal customers in North America, has acquired Pensacola Stevedore Company Inc., a U.S. cargo handler and distributor. No transaction terms were released.

Private Buyer has Acquired Le Centre Sheraton

A private buyer has acquired Le Centre Sheraton LP, a Canadian hotel company. Le Centre Sheraton was a subsidiary of Marriott International. Total transaction value is estimated to be $92.0 million.

First Colombia Development has Acquired First Colombia Devco

First Colombia Development Corp., a Canadian company that commercializes domain names in the automotive e-commerce business, has acquired First Colombia Devco SAS, a Colombian company that is engaged in the development, tourism, infrastructure and other high growth sectors of Colombia. First Colombia Devco was a subsidiary of Grupo Jaque. Total transaction value is estimated to be $129 thousand.