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Canadian M&A Market Recap: Week Ended October 5th

  • Posted By: Maximilian Horne, Ryan Kofsky, Jennifer Wang, Christopher Tuszynski, and Paris Aden

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Market Update

Eighty-nine Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 4.1% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.07 cents, ending the week at 77 cents. The TSX outperformed the S&P 500 by 0.1% in U.S. dollar terms. WTI Crude oil rose by 1.6%, ending the week at $74.26 per barrel.

According to The Lead Left, direct lending has quickly become a dominant private debt fund type within the past five years. North America and Europe account for a large majority of this direct lending activity. Although North America sees the largest number of fund closures and the most capital raised, Europe’s activity has been quietly surpassing North America’s this year.

Canadian M&A Transactions[i]

Energy (Closed)

Brookfield Infrastructure Partners has Acquired NorthRiver Midstream

Brookfield Infrastructure Partners (NYSE:BIP), a Canadian company that engages in utility, transport, energy, and communications infrastructure businesses, has acquired NorthRiver Midstream Inc., a Canadian company that stores and transports oil and natural gas. Total transaction value is estimated to be $4.3 billion.

Materials (Announced)

Mercer International to Acquire Daishowa-Marubeni International

Mercer International Inc. (NASDAQ:MERC), a Canadian manufacturer and seller for northern bleached softwood kraft pulp internationally, has agreed to acquire Daishowa-Marubeni International Ltd., a Canadian manufacturer of pulp in North America. Total transaction value is estimated to be $465 million, reflecting a 8.4x EBITDA multiple and 1.3x revenue multiple.

Materials (Closed)

            Global Cannabis Innovators has Acquired Homeblown Glassworks

Global Cannabis Innovators Corp., a Canadian company that cultivates, markets, and retails cannabis, has acquired Homeblown Glassworks Incorporated, a Canadian manufacturer and supplier of glass products. No transaction terms were released.

Industrials (Announced)

            PreveCeutical Medical to Acquire Penta 5 Packaging

PreveCeutical Medical Inc. (CNSX:PREV), a Canadian company that develops options for preventive and curative therapies using organic and nature identical products, has agreed to acquire Penta 5 Packaging Inc., a Canadian company that provides contract packaging services. Total transaction value is estimated to be $16 million.

Industrials (Closed)

            Quovim C3 has Acquired SSA Solutions

Quovim C3 Inc., a Canadian company that provides contact center software and consulting services to organizations, has acquired SSA Solutions Inc., a Canadian company that provides workforce management consulting services. No transaction terms were released.

            York Environmental Solutions has Acquired SC Disposal

York Environmental Solutions LP, a Canadian company that provides environmental solutions to construction and land development sectors, has acquired SC Disposal Inc., a Canadian company that provides waste management services. No transaction terms were released.

            MNP has Acquired 4Plan Consulting

MNP LLP, a Canadian company that provides accounting and consulting services, has acquired 4Plan Consulting Corp., a Canadian company that provides management consulting, professional and software solution services to the public sector. No transaction terms were released.

            JAME Capital has Acquired Ergo Advantage

JAME Capital Inc., a Canadian private equity firm, has acquired Ergo Advantage Inc., a Canadian manufacturer of ergonomic tiling and edging products for industrial applications. No transaction terms were released.

            K-Bro Linen has Acquired Linitek

K-Bro Linen Inc. (TSX:KBL), a Canadian company that engages in the processing, management, and distribution of general linen and operating room linen in Canada, has acquired Linitek Inc., a Canadian company that provides laundry outsourcing services to the hospitality industry. Total transaction value is estimated to be $4.7 million, reflecting a 7.8x EBITDA multiple and a 1.3x revenue multiple.

            NanoXplore has Acquired Sigma Industries

NanoXplore, Inc. (TSXV:GRA), a Canadian manufacturer and supplier of graphene powder for use in industrial markets, has acquired Sigma Industries Inc., a Canadian company that produces and sells composite components. Total transaction value is estimated to be $30.4 million, reflecting a 7.5x EBITDA multiple and a 0.5x revenue multiple.

Consumer Discretionary (Announced)

EPHS Holdings to Acquire Merritt Valley Cannabis

EPHS Holdings, Inc. (OTCPK:STNN), a U.S-based company that intends to cultivate and distribute cannabis in Canada, has agreed to acquire Merritt Valley Cannabis Company, a Canadian company in the cannabis industry. Total transaction value is estimated to be $18.1 million.

Consumer Discretionary (Closed)

            Montreal Lake Business Ventures has Acquired Blue Moose  Clothing Company

Montreal Lake Business Ventures LP, a U.S-based company that creates wealth, employment and economic self-sufficiency opportunities for the Montreal Lake Cree Nation, has acquired Blue Moose Clothing Company Ltd., a Canadian company that designs, manufactures, and sells footwear. No transaction terms were released.

Consumer Staples (Announced)

            Maple Leaf Foods to Acquire Les Produits Alimentaires Viau

Maple Leaf Foods Inc. (TSX:MFI), a Canadian company that operates as a consumer protein company, has agreed to acquire Les Produits Alimentaires Viau Inc., a Canadian company that develops and produces cooked or dry cured pepperoni, Italian cooked meats, sausages, pizza toppings, and meatballs. Total transaction value is estimated to be $215 million, reflecting a 1.2x revenue multiple.

Consumer Staples (Closed)

            Coca-Cola Canada Bottling has Acquired Coca-Cola Refreshments Canada

Coca-Cola Canada Bottling Limited, a company that operates Coca-Cola’s bottling and distribution operations in Canada, has acquired Coca-Cola Refreshments Canada Company, a producer, seller, and distributer of sparkling and still beverages such as soft drinks. No transaction terms were released.

Financials (Closed)

            The Co-operators Group has Acquired Robert Poirier & Associés, Courtier d'assurance

The Co-operators Group Limited, a Canadian company that provides insurance and financial services in Canada, has acquired Robert Poirier & Associés, Courtier d'assurance Inc., a Canadian company that offers insurance brokerage services focusing on personal and commercial insurance policies. No transaction terms were released.

            Totten Insurance Group has Acquired Anderson McTague & Associates

Totten Insurance Group Inc., a Canadian company that provides insurance brokerage services in Canada, has acquired Anderson McTague & Associates Ltd., a Canadian company that operates as a managing general agent that provides customized solutions to a range of hard-to-place and standard risks. No transaction terms were released.

Information Technology (Announced)

            Madison Systems to Acquire Stanmac Broadband

Madison Systems, Inc. (OTCPK:MADI), a Canadian company that provides network security, has agreed to acquire Stanmac Broadband Inc., a Canadian company that builds systems to supply Internet, Internet Protocol Television (IPTV), Voice over Internet Protocol (VoIP), and security systems. No transaction terms were released.

Information Technology (Closed)

            Process Fusion has Acquired UniPrint.net

Process Fusion Inc., a Canadian company that develops cloud-based applications for document data capture and business process automation, has acquired UniPrint.net Corp., a Canadian company that develops enterprise print management and output solutions. No transaction terms were released.

            Themis Solutions has Acquired LawKick

Themis Solutions Inc., a Bessemer Venture Partners, Version One Ventures, Acton Capital Partners and Point Nine Capital backed Canadian developer of web-based practice management systems for solo practitioners and small law firms, has acquired LawKick, Inc., a U.S-based company that designs and develops client relationship management software solution for law firms. No transaction terms were released.

            Prometheus Group Enterprises has Acquired Solufy Information Technologies

Prometheus Group Enterprises, LLC., a Francisco Partners Management and Investors Management Corporation backed U.S-based developer for software solutions has acquired Solufy Information Technologies, Inc., a Canadian company that provides software solutions for planning, scheduling, and data management. No transaction terms were released.

            Vela Software International has Acquired Coreworx

Vela Software International, Inc., a Canadian company that provides software solutions to vertical industries internationally, has acquired Coreworx Inc., a Golden Triangle Angel Network backed Canadian company that develops web-based integrated project information management software for engineering and construction. No transaction terms were released.

            ECi Software Solutions has Acquired DOCassess

ECi Software Solutions, Inc., an Apax Partners and The Carlyle Group backed U.S-based company that develops and provides cloud-based and on-premise business management software solutions, has acquired DOCassess Inc., a Canadian software developer for managed print services, document management and solutions. No transaction terms were released.

            NCM Associates has Acquired TSi Auto Solutions

NCM Associates, Inc., a U.S-based company that provides consulting, educational, and benchmarking analytical data services for new and pre-owned automotive dealers, has acquired TSi Auto Solutions Inc., a Canadian company that provides Web-based business management solutions. No transaction terms were released.

LuminUtra Technologies has Acquired Instantlabs Medical Diagnostics

LuminUtra Technologies Ltd., a Canadian company that provides test kits and microbiological measurement tools for monitoring and controlling microbes, has acquired Instantlabs Medical Diagnostics Corporation, a  U.S-based developer of portable quantitative real-time PCR systems for medical diagnostics and food safety testing. No transaction terms were released.

Utilities (Announced)

            Connor, Clark & Lunn Infrastructure to Acquire Bremner Trio Hydro

Connor, Clark & Lunn Infrastructure Ltd., a Canadian company that specializes in infrastructure investments, has agreed to acquire Bremner Trio Hydro Corp., a Canadian company that owns hydropower facilities. No transaction terms were released.

Other (Announced)

LiveWell Canada to Acquire Acenzia

LiveWell Canada Inc. (TSXV:LVWL), a Canadian company that focuses on the provision of healthy functional food products, has agreed to acquire Acenzia Inc., a Canadian company that engages in scientific research, product development and advanced manufacturing services to the nutraceutical industry. Total transaction value is estimated to be $20 million.

Other (Closed)

            Pestell Pet Products has Acquired BPV Environmental

Pestell Pet Products Inc., a Wind Point Partners backed Canadian manufacturer of cat litter, small animal bedding, and hay products, has acquired BPV Environmental, an U.S-based manufacturer of alternative, paper-based animal litter, small animal bedding, and lawn and garden products. No transaction terms were released.

            Tyler Technologies has Acquired MobileEyes Security Canada

Tyler Technologies, Inc. (NYSE:TYL), a U.S-based company that provides integrated information management solutions and services for the public sector internationally, has acquired MobileEyes Security Canada Inc., a company that focuses on security and investigations. 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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