Value Unleashed

Market Update

Sixty-three Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 10.1% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.03 cents, ending the week at 78 cents. The TSX outperformed the S&P 500 by 0.6% in U.S. dollar terms. WTI Crude oil rose by 2.4%, ending the week at $69.72 per barrel.

According to The Lead Left, the U.S. middle market loan pipeline hit US$6.1 billion marking the highest level since Thomson Reuters began tracking the pipeline late last year. Consistent middle market fundraising helps to continue to fuel demand.

Canadian M&A Transactions[i]

Materials (Announced)

Cobalt Power Group to Acquire Western Cobalt

Cobalt Power Group Inc. (TSXV:CPO), a Canadian company that engages in the acquisition, exploration, and development of mineral properties in Canada, has agreed to acquire Western Cobalt Corp., a Canadian company that provides mineral exploration services. Total transaction value is estimated to be $2.3 million.

Materials (Closed)

Supremex has Acquired Groupe Deux Printing

Supremex Inc. (TSX:SXP), a Canadian company that manufactures and sells envelopes, packaging and specialty products in North America, has acquired Groupe Deux Printing Inc., a Canadian company that manufactures folding cartons. Total transaction value is estimated to be $11.2 million, implying a 0.94x revenue multiple.

Industrials (Announced)

DATA Communications Management to Acquire Perennial

DATA Communications Management Corp. (TSX:DCM), a Canadian company that provides business communication solutions in North America, has agreed to acquire Perennial Inc., a Canadian company that offers graphic designing and store designing services to retail brands internationally. Total transaction value is estimated to be $12.0 million, implying a 1.72x revenue multiple.

Industrials (Closed)

VBG Properties has Acquired Baron Global Financial Canada

VBG Properties Limited, a U.S.-based company that leases real estate properties, has acquired Baron Global Financial Canada Ltd., a Canadian company that provides financial advisory services to private and public companies. Total transaction value is estimated to be $6.0 million.

Consumer Discretionary (Announced)

Fairfax Financial Holdings to Acquire Toys"R"Us     

Fairfax Financial Holdings Limited (TSX:FFH), a Canadian company that provides property, casualty insurance, reinsurance, and investment management services internationally, has agreed to acquire the Canadian unit of Toys"R"Us Ltd., a retail company that sell toys, games, and other related products for kids in North America. Total transaction value is estimated at $300 million.

Healthcare (Announced)

Beleave to Acquire Medi-Green Cannabis Clinic Network

Beleave Inc. (CNSX:BE), a Canadian company that together with its subsidiary, operates as a medical cannabis company in Canada, has agreed to acquire Medi-Green Cannabis Clinic Network, a Canadian company that owns and operates a network of medical cannabis clinics in Canada. Total transaction value is estimated to be $5.0 million, implying a 1.72x revenue multiple.

Premier Health Group to Acquire HealthVue Ventures

Premier Health Group Inc. (CNSX:PHGI), a Canadian company that operates a multidisciplinary rehabilitation facility in Santiago, has agreed to acquire HealthVue Ventures Ltd., a Canadian company that provides patient health care. Total transaction value is estimated to be $1.6 million.

Healthcare (Closed)

MYM Nutraceuticals has Acquired Sublime Culture

MYM Nutraceuticals Inc. (DB:0MY), a Canadian company that develops and markets hemp-based cannabidiol extracts and oil infused nutraceutical products, has acquired Sublime Culture Inc., a Canadian company that produces cannabis for medical purposes. Total transaction value is estimated to be $1.1 million.

Innomar Strategies has Acquired Therapeutic Products

Innomar Strategies Inc., a Canadian company that provides patient support services to pharmaceutical manufacturers and healthcare professionals internationally, has acquired Therapeutic Products Inc., a Canadian company that provides regulatory and quality assurance consultation to specialty pharmaceutical manufacturers internationally. No transaction terms were released.

GP Strategies has Acquired IC Axon

GP Strategies Corporation (NYSE:GPX), a U.S.-based company that provides performance improvement and learning solutions internationally, has acquired IC Axon Inc., a Canadian company that develops clinical and sales training solutions to pharmaceutical, biopharma, veterinary medicine, and medical device industries. Total transaction value is estimated to be $33.5 million.

Altum Pharmaceuticals has Acquired Lexi Pharma

Altum Pharmaceuticals Inc., a Canadian company that operates as a biopharmaceutical company that develops clinical and commercial healthcare products, has acquired Lexi Pharma Inc., a Canadian company that develops therapies for bone disease and oncology. No transaction terms were released.

Choom Holdings has Acquired Island Green Cure

Choom Holdings Inc. (CNSX:CHOO), a Canadian company that through its subsidiary, Medi-Can Health Solutions Ltd, engages in cultivating and selling cannabis for medical purposes and related products under the Choom brand name, has acquired Island Green Cure Ltd., a Canadian company that researches, develops, and produces marijuana for medical purposes. Total transaction value is estimated to be $7.2 million.

Information Technology (Announced)

Carl Data Solutions to Acquire Astra Smart Systems

Carl Data Solutions Inc., a Canadian company that provides big-data-as-a-service-based solutions for data collection, storage, and analytics in data-centric companies, has agreed to acquire Astra Smart Systems Inc., a Canadian technology company that manufactures environmental monitoring devices. No transaction terms were released.

Cvent to Acquire QuickMobile

Cvent, Inc., a U.S.-based company that provides a cloud-based enterprise event management platform with solutions for corporate events and meetings internationally, has agreed to acquire QuickMobile Inc., a BDC Venture Capital and TIMIA Capital Corporation backed Canadian company that develops a mobile enterprise meeting and analytics solution. No transaction terms were released.

HashChain Technology to Acquire TG12 Ventures

HashChain Technology Inc. (TSXV:KASH), a Canadian company that operates as a blockchain technology company, has agreed to acquire TG12 Ventures Inc., a Block One Capital Inc. backed  Canadian company that offers cryptocurrency mining services. Total transaction value is estimated to be $2.8 million.

Information Technology (Closed)

Validity has Acquired CRMfusion

Validity Inc., a U.S.-based company that develops software as a service data integrity platform that enables professionals in resolving complexities of data management and data compliance, has acquired CRMfusion Inc., a Canadian company that develops Salesforce data cleansing automation tools for organizations internationally. No transaction terms were released.

Utilities (Announced)

Axium Infrastructure to Acquire Brooklyn Navy Yard Cogeneration Partners

Axium Infrastructure Inc., a Canadian private equity company specializing in middle market investments, acquisitions, and development of assets, has agreed to acquire Brooklyn Navy Yard Cogeneration Partners L.P., an Ares EIF Management LLC backed U.S.-based company that operates a co-generation facility which produces and supplies electricity and steam to clients in New York. No transaction terms were released.

Other (Closed)

HotelPlanner has Acquired BackBid

HotelPlanner, a U.S.-based company that provides online group hotel booking services internationally, has acquired BackBid Inc., a Canadian company that allows existing reservations to solicit better offers from competing hotels. No transaction terms were released.