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Canadian M&A Market Recap: Week Ended Oct 7, 2016

  • Posted By: Louis Goldberg, Miranda Li, Michael Mazza and Paris Aden

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Capital Markets Update

Weekly Canadian target deal count was below average for the week at 31 and the TSX slipped below its 52-week high. Oil prices rebounded after OPEC reached a deal last week to cut oil production.  The TSX composite underpreformed the S&P 500 index by 1.4% last week on U.S. dollar basis.

U.S. debt markets are gaining traction, as this week was the first time in the last couple months that there have been greater than three syndicated deal observations in 30-day rolling bank books.

Mid-market M&A Indicator: August 2016 – Signs of a Second Half Rebound

Consistent with the July reading, the August M&A Conditions Index (MACI) composite signals an expansionary environment and leading indicators have strengthened further. Leads remain firmly in expansionary territory, while LOI volume jumped to its highest level since February 2016. The strength of these leading indicators signal a robust M&A environment in the second half of 2016.

Mergers & Acquisitions Magazine has been publishing the M&A Conditions Index (MACI) since the fall of 2013 to gauge general M&A market conditions. For more information on the various indicators and the methodology, click here.

Weekly Canadian Private Market M&A Report

Announced Deals

Canadian Overseas Packaging to Acquire Corrpak Jamaica

Canadian Overseas Packaging Industries Limited, a manufacturer of corrugated boxes, has agreed to acquire Corrpak Jamaica Limited, which designs, manufactures, and sells corrugated boxes. No transaction terms were released.

FLIR Systems to Acquire Point Grey Research

FLIR Systems, Incorporated (NasdaqGS:FLIR), which designs, develops, manufactures, and markets thermal imaging, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions worldwide, has agreed to acquire Point Grey Research Incorporated, a Canadian company that designs and manufactures digital cameras for industrial, medical and life science, traffic, biometric, GIS, and people counting applications. Transaction value is estimated to be $253 million.

AutoCanada to Acquire Wellington Motors

AutoCanada Incrporated (TSX:ACQ), which through its subsidiaries, operates franchised automobile dealerships, has agreed to acquire Wellington Motors Limited, a family owned Chrysler Dodge Jeep dealership. No transaction terms were released.

Lehigh Hanson Materials to Acquire ESSROC Canada

Lehigh Hanson Materials Limited, a Canadian company that manufactures and supplies heavy building materials for clients in North America, has agreed to acquire ESSROC Canada, Incorporated, which manufactures cement and related products. Transaction value is estimated to be $371 million.

Dixon Hughes Goodman to Acquire Parke, Guptill & Company

Dixon Hughes Goodman, LLP, a U.S. company that provides accounting and financial advisory services, has agreed to acquire Parke, Guptill & Company, LLP, which provides professional accounting, auditing, tax and management advisory services. No transaction terms were released.

Spire Technologies to Acquire DormBooker

Spire Technologies Incorporated (OTCPK:SPTK), a Toronto-based company, has agreed to acquire DormBooker Incorporated, which operates an online portal for students, co-ops, and interns looking for accommodations while they are in school. No transaction terms were released.

M Pharmaceutical to Acquire ToConceive

M Pharmaceutical Incorporated (DB:T3F2), a clinical-stage biomedical technology company that develops and commercializes technologies for the monitoring and treatment of obesity, diabetes, and other gastroenterological indications in Canada, has agreed to acquire ToConceive, LLC, which develops natural conception lubrication cream. Transaction value is estimated to be $1.4 million.

1083256 B.C. to Acquire Russell Brewing Company

1083256 B.C. Limited has agreed to acquire Russell Brewing Company, which produces craft beers and draught beers for fine pubs and eateries in British Columbia. Transaction value is estimated to be $2 million.

Fort Garry Brewing to be Acquired

Fort Garry Brewing Co. Limited, a Russell Brewing Company subsidiary that engages in brewing and distributing ales and lagers/beers, has entered into a purchase agreement with an undisclosed buyer. Transaction value is estimated to be $8 million.

Closed Deals

GFL Environmental Acquires Rizzo Environmental Services

GFL Environmental Incorporated, a Hawthorn Equity Partners and HPS Investment Partners backed solid and liquid waste management company that engages in collecting and processing industrial, commercial, institutional, municipal, and residential solid and recycling wastes, has acquired Rizzo Environmental Services, Incorporated, which provides waste control services to home and business owners in the metro Detroit area. No transaction terms were released.

Aptos Acquires BT Expedite

Aptos, Incorporated, a Apax Partners backed company that owns and operates an online platform that provides retail enterprise management solutions, has acquired BT Expedite Limited, a UK based company that provides business transformation information technology solutions for retailers. No transaction terms were released.

Mi-Jack Products Acquires Manitex Liftking

Mi-Jack Products, Incorporated, which engages in the design, manufacture, sale, service, and support of rubber tired gantry cranes and special component machinery for industrial and intermodal industries worldwide, has acquired Manitex Liftking ULC, which manufactures and delivers rough terrain forklifts and other material handling equipment for commercial and military applications. Transaction value is estimated to be $18 million, which represents an implied Enterprise Value to EBITDA multiple of 7x.

Starlight Investments and Starlight U.S. Multi-Family (No. 3) Core Fund Acquire Boardwalk Med Center Apartment Complex

Starlight Investments Limited, a real estate investment firm specializing indirectly acquiring, owning and operating a portfolio of diversified income producing rental properties in the U.S. multi-family real estate market, together with Starlight U.S. Multi-Family (No. 3) Core Fund, has acquired Boardwalk Med Center Apartment Complex, located in the United States. No transaction terms were released.

Annex Publishing & Printing Acquires Blue Line Magazine

Annex Publishing & Printing, Incorporated, which publishes, prints, and distributes magazines in North America, has acquired Blue Line Magazine, Canada’s national law enforcement magazine. No transaction terms were released.

GFL Environmental Acquires Envirosmart Organics

GFL Environmental Incorporated, a Hawthorn Equity Partners and HPS Investment Partners backed solid and liquid waste management company that engages in collecting and processing industrial, commercial, institutional, municipal, and residential solid and recycling wastes, has acquired Envirosmart Organics Limited, a Canadian company that manufactures turfs. No transaction terms were released.

Singer Equities Acquires Future Hydraulik

Singer Equities, Incorporated, an investment arm of SBP Holdings, has acquired Future Hydraulik Incorporated, which provides hydraulic distributors and technical assistance. No transaction terms were released.

Group Multi-Prêts Mortgage Alliance Acquires Invis

Group Multi-Prêts Mortgage Alliance, a mortgage broker in Quebec, Canada, has acquired Invis Incorporated, which provides mortgage brokerage services in Canada. No transaction terms were released.

Shopify Acquires Boltmade

Shopify Incorporated (NYSE:SHOP), which provides a cloud-based and multi-channel commerce platform for small and medium-sized businesses, has acquired Boltmade Incorporated, which offers software development services and focuses on cloud development, user experience research, and mobile design. No transaction terms were released.

Pivot Technology Solutions Acquires TeraMach

Pivot Technology Solutions, Incorporated (TSXV:PTG), a private equity firm, has acquired TeraMach, A Pivot Company, which provides information technology services. No transaction terms were released.

Micro Focus International Acquires GWAVA

Micro Focus International plc (LSE:MCRO), which develops and sells software products and solutions worldwide, has acquired GWAVA Incorporated, a global software company that provides on-premise and cloud-based solutions that protect email systems from viruses and spam. No transaction terms were released.

SGS Canada Acquires AXYS Analytical Services

SGS Canada Incorporated, which provides technical services conducting analytical testing across various industries in Canada and internationally, has acquired AXYS Analytical Services Limited, which engages in the analysis of organic pollutants and organic contaminants. No transaction terms were released.

BSM Technologies Acquires Mobi

BSM Technologies Incorporated (TSX:GPS), which provides real-time global positioning systems fleet and asset management solutions to the organizations that manages and operates large fleets, has acquired Mobi Corporation, which develops and delivers location-based solutions and analytics that help businesses drive down costs, increase customer satisfaction, and improve productivity. Transaction value is estimated to be $33 million.

Signal Hill Provides Investment to Support McIntosh Perry and CCI Group Merger

Signal Hill Equity Partners backed CCI Group Incorporated, which provides consulting engineering and technical solutions for various stages of construction projects in Canada has merged with McIntosh Perry Consulting Engineers Limited, which offers consulting engineering services and technical solutions.  Signal Hill provided growth capital to facilitate the transaction. No transaction terms were released.

The Herjavec Group Acquires Aikya Security Solution

The Herjavec Group, Incorporated, which provides IT information security services for various businesses, has acquired Aikya Security Solutions Incorporated, a security advisory consulting and solution implementation firm focused on identity and access management, privileged access management, risk and compliance management and application security. No transaction terms were released.

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