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Canadian M&A Market Recap: Week Ended October 19th

  • Posted By: Ryan Kofsky, James Silva, Dawid Misiak, Michael Mazza, and Paris Aden

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Market Update

Forty-three Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 3.7% higher than the comparable period in 2017. The Canadian dollar depreciated by 0.47 cents, ending the week at 76 cents. The TSX underperformed the S&P 500 by 0.3% in U.S. dollar terms. WTI Crude oil fell by 2.7%, ending the week at $69.28 per barrel.

According to The Lead Left, in Q3, four distressed debt vehicles raised $2.4bn, eight mezzanine funds raised $1.5bn and 15 direct lending funds raised $19bn. This brings the average direct lending size to $1.3bn – the largest average size for a direct lending fund of any quarter in the last five years. The average size of a direct lending fund in Q2 was $688mn and the average size in Q1 was $548mn. Private debt fundraising activity slowed in Q3 2018, with the quarter recording 31 funds holding a final close and securing a total of $24bn in capital, direct lending had a banner quarter.

Canadian M&A Transactions[i]

Materials (Announced)

           Braveheart Resources to Acquire Purcell Basin Minerals

Braveheart Resources Inc. (TSXV:BHT), a Canadian company that locates, acquires, and explores for precious metals in North America, has agreed to acquire Purcell Basin Minerals Inc., a Canadian mining company whose primary assets are located in British Columbia. No transaction terms were released.

North Bud Farms to Acquire Janey's

North Bud Farms Inc. (CNSX:NBUD), a Canadian company that through its subsidiaries, focuses on the production of pharmaceutical and food grade cannabinoid products in Canada, has agreed to acquire Janey's Inc., a Canadian subsidiary of Twelve Barrels Whiskey, Janey’s is one of six approved Cannabis accessory suppliers to the Ontario Cannabis Store. Total transaction value is estimated to be $42 thousand.

Materials (Closed)

Alberta Teachers' Retirement Fund Board, Farol Asset Management and EagleTree Capital have Acquired Gaylord Chemical Company

Alberta Teachers' Retirement Fund Board, Farol Asset Management LP, and EagleTree Capital LP, all various private investment firms, have acquired Gaylord Chemical Company, LLC,  a U.S.-based company that produces dimethyl sulfoxide, a highly polar and water miscible organic liquid. No transaction terms were released.

Industrials (Closed)

Lumenpulse Group has Acquired Sternberg Lighting

Lumenpulse Group Inc., a Canadian designer, developer, manufacturer, and seller of light emitting diode lighting solutions for commercial, institutional, and urban environments globally, has acquired Sternberg Lighting, a U.S.-based engineer, designer, and manufacturer of outdoor decorative street lighting products. No transaction terms were released.

Wajax has Acquired Groupe Delom

Wajax Corporation (TSX:WJX), a Canadian integrated distribution company and leading provider of industrial products and services to various sectors, has acquired Groupe Delom, Inc., a Canadian company specializing in the maintenance and repair of critical electromechanical and rotating equipment for continuous process industries. Total transaction value is estimated to be $51.8 million, implying a 6.1x EBITDA multiple and a 0.75x revenue multiple.

Consumer Discretionary (Announced)

HelloFresh to Acquire Chef's Plate

HelloFresh SE (DB:HFG), a German based company that delivers meal kit solutions to prepare home-cooked meals each week, has agreed to acquire Chef's Plate Inc., a Investeco Capital,  Acton Capital Partners, Emil Capital Partners, Comerica Bank, and BrandProject backed Canadian company that sells fresh ingredients, groceries, and meal kits online throughout Canada. No transaction terms were released.

Financials (Announced)

A.P. Reid Insurance to Acquire Wardell Insurance

A.P. Reid Insurance Limited, a Canadian insurance broker that offers personal and business insurance solutions in Canada, has agreed to acquire Wardell Insurance Limited, a Canadian insurance broker that provides general insurance services. No transaction terms were released.

Information Technology (Closed)

Altair Engineering has Acquired SIMSOLID

Altair Engineering Inc. (Nasdaq:ALTR), a U.S.-based company that together with its subsidiaries, provides enterprise-class engineering software worldwide, has acquired SIMSOLID Corporation, a Canadian company that develops structural analysis software for design engineers. No transaction terms were released.

Patron Technology has Acquired Marcato Digital Solutions

Patron Technology, Inc., a Providence Equity Partners and Providence Strategic Growth Capital Partners backed U.S.-based designer and developer of a customer relationship management (CRM) system, has acquired Marcato Digital Solutions, Inc., a Canadian developer of Web-based solutions for the music industry. No transaction terms were released.

I-Mobileca has Acquired Télécommunications Denis Gignac

I-Mobileca Inc., a Canadian company that operates as a wireless mobile telecommunication enabler and operator, has acquired Télécommunications Denis Gignac Inc., a Canadian company that offers sale, rental, and repair services of telecommunications equipment. No transaction terms were released.

NEOGOV has Acquired High Line

NEOGOV, Inc., a Warburg Pincus backed U.S.-based provider of on-demand human resources software to the public sector, has acquired High Line Corporation, a Canadian company that offers human resources management systems for the public sector and higher education markets. No transaction terms were released.

Jonas Software has Acquired Greycon

Jonas Operating Group, a Canadian company that owns and operates software companies worldwide, has acquired Greycon Ltd., a U.K.-based company that provides paper and board software solutions for planning, scheduling and execution for specialty paper mills worldwide. No transaction terms were released.

Healthcare (Closed)

EVITRADE Health Systems has Acquired Western Agri Supply Solutions

EVITRADE Health Systems Corp. (CNSX:EVA), a Canadian provider of automated biomedical care services online, has acquired Western Agri Supply Solutions Corp., a Canadian company that engages in the sourcing and supply of agricultural products. Total transaction value is estimated to be $7.6 million.

Other (Closed)

Craft Collective Beerworks has Acquired Postmark Brewing

Craft Collective Beerworks, a Canadian company that owns and operates a brew house, has acquired Postmark Brewing, a Canadian company that operates as a beer craft brewery. No transaction terms were released.


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

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