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Canadian M&A Market Recap: Week Ended November 16th

  • Posted By: Kyle Johnston, James Silva, Simone Aria, Louis Goldberg, and Paris Aden

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Market Update

Ninety-six Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 1.8% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.31 cents, ending the week at 76 cents. The TSX outperformed the S&P 500 by 1.3% in U.S. dollar terms. WTI Crude oil fell by 5.8%, ending the week at $56.68 per barrel.

According to The Lead Left, the clearing yields last week for newly issued sub-$200 million loans were 7.03%. One year ago, the clearing yield for newly issued sub-$200 million loans was 5.28%. This trend in rising yields is complemented by a 0.2x rise in average Senior Debt / EBITDA ratios, from 5.6x one year ago to 5.8x last week. Two possible explanations for higher yields are either senior lenders offering more leverage, stretching into mezzanine territory, or, the quality of the companies issuing debt is deteriorating.

Canadian M&A Transactions[i]

Energy (Announced)

Standard Exploration to Acquire Gulf Pine Energy Partners

Standard Exploration Ltd. (TSXV: SDE), a Canadian company that engages in the exploration, development, and production of petroleum and natural gas in Canada, has agreed to acquire Gulf Pine Energy Partners L.P., a Canadian company that focuses on developing light oil resources in the Southern United States. Total transaction value is estimated to be $32.2 million, implying a 2.1x revenue multiple.

Primary Energy Metals to Acquire Prost Vanadium

Primary Energy Metals Inc. (CNSX: PRIM), a Canadian company that an specializes in the acquisition, exploration, and development of mineral properties in Canada, has agreed to acquire Prost Vanadium Ltd., a Canadian company that engages in the exploration of vanadium and uranium. No transaction terms were released.

Materials (Closed)

          TorQuest Partners has Acquired Bartek Ingredients

TorQuest Partners Inc., a Canadian private equity firm, has acquired Bartek Ingredients Inc., a Canadian company that manufactures and distributes specialty chemicals primarily used for food and beverage applications. No transaction terms were released.

Industrials (Announced)

Avante Logixx to Acquire Intelligarde International

Avante Logixx Inc. (TSXV: XX), a Canadian company that provides residential and commercial security services, has agreed to acquire Intelligarde International Inc., a Canadian company that provides security guard services in Toronto, Ottawa, Hamilton, and Winnipeg. Total transaction value is estimated to be $4.75 million, implying a 0.3x revenue multiple.

The Wilson’s Group to Acquire Tofino Bus Services

The Wilson’s Group, a Canadian company that provides bussing services throughout Western Canada, has agreed to acquire Tofino Bus Services Inc., a Canadian company that owns and operates scheduled buses that provide passenger transportation services. No transaction terms were released.

Industrials (Closed)

EnGlobe has Acquired McIntosh Lalani Engineering

EnGlobe Corp., a Canadian company that provides soil, materials, and environmental engineering services, has acquired McIntosh Lalani Engineering Ltd., a Canadian company that provides engineering consulting services. No transaction terms were released.

Manitoulin Transport has Acquired Express Havre St-Pierre

Manitoulin Transport Inc., a Canadian operator of a transportation network in North America, has acquired Express Havre St-Pierre Ltée, a Canadian company provider of industrial and commercial transportation services. No transaction terms were released.

ACR Electronics has Acquired Latitude Technologies

ACR Electronics Inc., an U.S.-based company that designs and manufactures rescue beacons and survival gear for marine, aviation, outdoor, and military markets, has acquired Latitude Technologies Corporation, a Canadian company that specializes in avionics design and manufacturing, flight data monitoring, flight following, satellite data link, and voice communications equipment and services. No transaction terms were released.

The Luminaires Group has Acquired Luminaire LED

The Luminaires Group Inc., a  Sentinel Capital Partners L.L.C. and Audax Group Inc. backed Canadian manufacturer of lighting products, has acquired Luminaire LED Inc., a U.S. based company that specializes in vandal resistant lighting and high security confinement fixtures. No transaction terms were released.

Consumer Discretionary (Announced)

Success Universe Group to Acquire Jade Travel Group

Success Universe Group Limited (SEHK: 487), a Hong Kong based investment holding company that engages in the travel-related and property investment businesses in the People’s Republic of China and North America, has agreed to acquire Jade Travel Group, a Canadian travel company. Total transaction value is estimated to be $1.37 million.

Gamehost to Acquire Encore Suites by Service Plus Inns

Gamehost Inc. (TSX: GH), a Canadian operator of hospitality and gaming properties in Alberta, has agreed to acquire Encore Suites by Service Plus Inns, a Canadian company that owns and operates assets within the hospitality sector. Total transaction value is estimated to be $12.5 million. Encore Suites by Service Plus Inns is a subsidiary of Peace Country Hospitality.

Consumer Discretionary (Closed)

Uni-Select has Acquired AutoChoice Parts & Paints

Uni-Select Inc. (TSX: UNS), a Canadian company that distributes automotive refinish, and industrial paint related products globally, has acquired AutoChoice Parts & Paints Limited, a Canadian distributor of automotive aftermarket parts and paints for domestic and foreign vehicles. No transaction terms were released.

Global Health Clinics has Acquired Integrative Alternative Health Services

Global Health Clinics Ltd. (CNSX: MJRX), a Canadian company that operates clinics that generate and convert leads for licensed producers and ancillary marijuana businesses in Canada, has acquired Integrative Alternative Health Services, a Canadian provider of yoga and counselling services. No transaction terms were released.

Groupe Touchette has Acquired Atlas Tire Wholesale

Groupe Touchette Inc., a Canadian distributor of tires, has acquired Atlas Tire Wholesale Inc., a Canadian tire distribution company. No transaction terms were released.

The Inland Group has Acquired Custom Truck Sales

The Inland Group, a Canadian truck dealer in North America, has acquired Custom Truck Sales Inc., a Canadian heavy-duty truck retailer and parts dealer. No transaction terms were released.

Consumer Staples (Closed)

Swander Pace Capital has Acquired Backerhaus Veit

Swander Pace Capital, an U.S.-based private equity firm, has acquired Backerhaus Veit Ltd., a Canadian bakery company producer of breads, rolls, and pretzels. No transaction terms were released.

CAI Capital Partners has Acquired Ansan Traffic Group

CAI Capital Partners, a Canadian private equity firm, has acquired Ansan Traffic Group, a Canadian provider of traffic control services throughout Western Canada. No transaction terms were released.

Information Technology (Announced)

Allcard to Acquire CPI Card Group Canada

Allcard Limited, a Canadian debit and credit card manufacturer, has agreed to acquire CPI Card Group Canada Inc., a Canadian manufacturer and marketer of plastic cards, smart cards, credit cards, and debit cards. No transaction terms were released. CPI Card Group Canada is a subsidiary of CPI Card Group (NasdaqCM: PMTS).

APPx Group Holdings to Acquire Cimtel

APPx Group Holdings, Inc. (CNSX: APPX), a Canadian financial technology company that provides technology-based business solutions, has agreed to acquire Cimtel Inc., a Canadian unified communications and cloud solutions provider. Total transaction value is estimated to be $1.00 million.

Seequent to Acquire Geosoft

Seequent Limited, a Pencarrow Private Equity Management Limited and Accel-KKR LLC backed New Zealand-based designer and developer of 3D geological modeling software solutions, has agreed to acquire Geosoft Inc., a Canadian company that provides software solutions for earth exploration, 3D modeling, and geospatial server technology. No transaction terms were released.

Information Technology (Closed)

Drop Technologies has Acquired Canopy Labs Software

Drop Technologies Inc., a New Enterprise Associates, Sierra Ventures, Hedgewood Inc., Silicon Valley Bank, White Star Capital L.P., HOF Capital and Portag3 Ventures L.P. backed Canadian company that owns a Web and mobile-based loyalty platform, has acquired Canopy Labs Software Inc., a Canadian company that provides a predictive customer analytics platform. No transaction terms were released.

Tecsys has Acquired OrderDynamics

Tecsys Inc. (TSX: TCS), a Canadian company that engages in the development, marketing, and sale of supply chain management software for multiple business operations internationally, has acquired OrderDynamics Corp., a Canadian provider of eCommerce solutions to multi-channel retailers internationally. Total transaction value is estimated to be $17.7 million.

Curate Mobile has Acquired JUICE Mobile

Curate Mobile Ltd., a Canadian developer of a technology-driven mobile growth platform, has acquired JUICE Mobile, a Canadian advertising technology company that develops mobile advertising platforms. No transaction terms were released.

CheckMarx.com has Acquired Custodela

CheckMarx.com LTD, an Insight Venture Partners LLC and XT Investments backed U.S.-based developer of software solutions that are used to identify security vulnerabilities in web and mobile applications, has acquired Custodela Inc., a Canadian company that provides software security program development and consulting services. No transaction terms were released.

Aquent has Acquired Aquent DEV6

Aquent LLC, a U.S.-based provider of staffing solutions to marketing and creative service organizations, has acquired Aquent DEV6, a Canadian company that engages in JavaScript development of user experiences on enterprise-grade mobile and web applications. No transaction terms were released.

Société Internationale de Télécommunications Aéronautiques has Acquired Mexia Interactive

Société Internationale de Télécommunications Aéronautiques, a Switzerland-based company that provides air transport communications and information technology consulting solutions, has acquired Mexia Interactive Inc., a Canadian technology provider of location-based customer analytics, business intelligence, and marketing insights. No transaction terms were released.

HUBConnect has Acquired Chirpi

HUBConnect, a Canadian developer of an algorithm that allows users to connect with people during events and conferences, has acquired Chirpi Inc., a Canadian company that develops social media application software. No transaction terms were released.

CopperTree Analytics has Acquired Buildpulse

CopperTree Analytics Inc., a Canadian company that designs and develops data and energy analytics software, has acquired Buildpulse Inc., a U.S.-based energy data analytics company. No transaction terms were released.

Boat Rocker Media has Acquired Matador Content

Boat Rocker Media, a Canadian creator, producer, and distributor of content and brands for various platforms, has acquired Matador Content LLC, an U.S. based content production company. No transaction terms were released.

Healthcare (Announced)

The Supreme Cannabis Company to Acquire Bayfield Strategy

The Supreme Cannabis Company Inc. (TSXV: FIRE), a Canadian company that engages in the production of medical cannabis in Canada, has agreed to acquire Bayfield Strategy Inc., a Canadian company that offers advisory services in strategic communications, investor relations, public affairs, and shareholder activism. Total transaction value is estimated to be $2.00 million.

Healthcare (Closed)

Invictus MD Strategies has Acquired Canandia Cannabis

Invictus MD Strategies Corp. (TSXV: GENE), a Canadian company that primarily engages in the investment, acquisition, and development of synergistic businesses in the Canadian medical cannabis industry, has acquired Canandia Cannabis Ltd., a Canadian producer of premium cannabis strains. Total transaction value is estimated to be $12.4 million.

 

[i] Includes all M&A transactions in which either the target or buyer is a Canadian private company.

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