Value Unleashed

Market Update

Fifty-nine Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 4.6% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.04 cents, ending the week at 76 cents. The TSX underperformed the S&P 500 by 0.9% in U.S. dollar terms. WTI Crude oil fell by 6.6%, ending the week at $63.14 per barrel.

According to The Lead Left, a significant majority of investor searches, about 60%, for new private debt fund commitments were for mezzanine funds, an increase from 45% of searches in the comparable 2017 period. Overall, there has been an uptick in interest across all strategies targeted by private debt investors, an indication that they are looking to increasingly diversify their portfolio mandates across a wide range of strategies.

Canadian M&A Transactions[i] 

Materials (Announced)

Pelangio Exploration to Acquire 5SD Capital

Pelangio Exploration Inc. (TSXV:PX), a Canadian junior gold exploration company that acquires, explores, and develops mineral properties in Canada and Ghana, has agreed to acquire 5SD Capital, a Canadian company that engages in the exploration of mineral properties. Total transaction value is estimated to be $919 thousand.

Materials (Closed)

STRACON has Acquired Dumas Contracting

STRACON S.A., a Peru-based company that provides mining contracting services, has acquired Dumas Contracting Ltd., a Canadian company that provides underground mining services to clients in the Americas. No transaction terms were released.

BRB International has Acquired CSL Silicones

BRB International BV, a Netherlands-based manufacturer, supplier, and exporter of silicones, additives, and chemicals, has acquired CSL Silicones Inc., a Canadian developer and manufacturer of silicone materials and engineered application solutions. No transaction terms were released.

Ironbridge Equity Partners has Acquired Canada Metal (Pacific)

Ironbridge Equity Partners Inc., a Canadian private equity firm, has acquired Canada Metal (Pacific) Limited, a Canadian manufacturer and supplier of non-ferrous metal products for marine, hydraulic, telecommunication, and electronic industries. No transaction terms were released.

Industrials (Announced)

Canadian National Railway to Acquire TransX Group of Companies

Canadian National Railway Company (TSX:CNR), a company that engages in rail and related transportation business, has agreed to acquire TransX Group of Companies, a Canadian company that provides integrated transportation and logistics services for businesses in North America. No transaction terms were released.

Roto-Gro International to Acquire Supra THC Services

Roto-Gro International Limited (ASX:RGI), an Australian company that produces and sells automated rotary hydroponic advanced garden systems, has agreed to acquire Supra THC Services Inc., a Canadian company that offers licensed cannabis testing laboratory services. Total transaction value is estimated to be $10.6 million.

Altas Partners to Acquire Tecta America

Altas Partners LP, a Canadian private equity firm, has agreed to acquire Tecta America Corp., an ONCAP backed company that operates as a commercial roofing contractor in the United States. No transaction terms were released.

Industrials (Closed)

IKO Industries has Acquired Roof Tile Group

IKO Industries Ltd., a Canadian manufacturer and supplier of roofing products for house building, commercial property, and engineering structures, has acquired Roof Tile Group Limited, a New Zealand-based company that manufactures and distributes metal roofing tiles. Total transaction value is estimated to be $52.1 million.

Brandt Industries has Acquired CAMEX Equipment Sales & Rental

Brandt Industries Ltd., a Canadian company that designs and manufactures agricultural, construction, forestry, and road rail equipment, has acquired Camex Equipment Sales & Rental Inc., a Canadian company that supplies new, used, and consigned equipment for oilfield and construction sectors. No transaction terms were released.

Eurofins Scientific has Acquired EnvironeX Laboratories

Eurofins Scientific SE (ENXTPA:ERF), a Luxembourg-based company that provides various analytical testing services internationally, has acquired EnvironeX Laboratories, a Canadian company that provides laboratory testing services. No transaction terms were released.

Consumer Discretionary (Closed)

Canada Goose has Acquired Baffin

Canada Goose Holdings Inc. (TSX:GOOS), a company that designs, manufactures, and sells premium outdoor apparel for men, women, and youth, has acquired Baffin Inc., a Canadian manufacturer of footwear. Total transaction value is estimated to be $32.5 million.

Information Technology (Announced)

NTT DATA Services to Acquire Sierra Systems Group

NTT DATA Services, a U.S-based company that provides technology-enabled services and solutions to clients internationally, has agreed to acquire Sierra Systems Group Inc., a Canadian company that provides IT and management consulting services in North America. No transaction terms were released.

Information Technology (Closed)

Bitbuy has Acquired CBIX

Bitbuy.ca, a Canadian company that operates a digital currency trading platform, has acquired CBIX.ca, a Canadian bitcoin index. No transaction terms were released.

Other (Announced)

Weekend Unlimited to Acquire R&D Pharma

Weekend Unlimited Inc. (CNSX:YOLO), a Canadian company that cultivates and produces lifestyle cannabis products, has agreed to acquire R&D Pharma Corp., a Canadian company that engages in the production of medicinal cannabis  in Jamaica. Total transaction value is estimated to be $10 million.

Other (Closed)

Calian Group has Acquired IntraGrain Technologies

Calian Group Ltd. (TSX:CGY), a Canadian company that provides systems engineering, manufacturing, training, information technology, and healthcare solutions to industries and governments, has acquired IntraGrain Technologies Inc., a Canadian company that delivers advanced technology solutions to the agriculture market. No transaction terms were released.