Value Unleashed

Market Update:

Sixty-one Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 3.2% lower than the comparable period in 2017. The Canadian dollar appreciated by 0.65 cents, ending the week at 77 cents. The TSX overperformed the S&P 500 by 1.3% in U.S. dollar terms. WTI Crude oil rose by 2.5%, ending the week at $70.37 per barrel.                                            

According to the Lead Left, primary yields have widened across the board in 3Q18. The average first-lien institutional term loan yield, assuming a three-year term to repayment is 6.41% so far this quarter, up from 5.77% in 2Q18. New issue first and second lien spreads are on the rise, though the differential between them is shrinking. Enbridge may be looking to sell 60-year bonds as early as this upcoming week, following the steps taken by TransCanada Corp earlier this year. Lastly, McDonald’s priced $1 billion worth of bonds in Canada on Monday, giving a boost to the Maple bond market that’s on track to be the busiest since the global financial crisis.             

Canadian M&A Transactions [i]

Energy (Announced)

Altima Resources to Acquire Crimson Oil & Gas

Altima Resources Ltd. (TSXV:ARH), a Canadian company that engages in the acquisition, exploration and development of petroleum and natural gas properties in Western Canada, has agreed to acquire Crimson Oil & Gas Ltd., a Canadian-based explorer of oil and gas reserves. Crimson Oil & Gas Ltd. is a subsidiary of Crimson Energy Ltd. Total transaction value is estimated to be $300 thousand.

Materials (Announced)

Ayecka Communication Systems to Acquire Exploratus

Ayecka Communication Systems Ltd., an Israeli-based manufacturer and marketer of satellite communication components, has agreed to acquire Exploratus Ltd., a Canadian company that acquires and explores mineral resource properties in Canada. No transaction terms were released.

Industrials (Announced)

3 Sixty Secure to Acquire Total Cannabis Security Solutions

3 Sixty Secure Corp, a Canadian provider of security services to the cannabis sector, has agreed to acquire Total Cannabis Security Solutions Inc., a Canadian provider of security, risk-management and compliance services to stakeholders in the regulated cannabis industry. No transaction terms were released.

North American Construction Group to Acquire Nuna Logistics

North American Construction Group Ltd. (NYSE:NOA), a Canadian provider of heavy construction and mining services, has agreed to acquire Nuna Logistics Limited, a Canadian company that through its subsidies, provides construction, logistics, infrastructure development, contract mining, and mining support services to the mining industry. Total transaction value is estimated to be $42.5 million, implying a 2.7x EBITDA multiple.

Aqua-Pak Industries to Acquire Mansonville Plastics

Aqua-Pak Industries Ltd., a Canadian manufacturer of expanded polystyrene boxes for transportation of perishables, has agreed to acquire Mansonville Plastics (BC) Ltd., a Canadian manufacturer and supplier of expanded polystyrene products for the construction sector. No transaction terms were released.

Industrials (Closed)

Ovivo has Acquired FilterBoxx

Ovivo Inc., a  Caisse de dépôt et placement du Québec and Skion Water International GmbH backed Canadian provider of water and wastewater treatment equipment, technology and systems, has acquired FilterBoxx Inc., a Canadian designer and supplier of packaged and modular water and wastewater solutions. No transaction terms were released.

ONCAP has Acquired Walter Surface Technologies

ONCAP, a Canadian private equity firm, has acquired Walter Surface Technologies Inc., a Canadian provider of surface treatment solutions and technologies. Walter Surface Technologies was a subsidiary of Walter Group. No transaction terms were released.

ISGEC Canada has Acquired Eagle Press and Equipment Company

ISGEC Canada Inc., a company that is a subsidiary of ISGEC Heavy Engineering, a manufacturer and distributor of mechanical presses and related equipment, has acquired Eagle Press and Equipment Co., Ltd., a Canadian manufacturer of mechanical presses and related equipment. Total transaction value is estimated to be $20.3 million, implying a 0.68x revenue multiple.

Avante Logixx has Acquired Veridin Systems Canada

Avante Logixx Inc. (TSXV:XX), a Canadian company that through its subsidiaries, provides residential and commercial security services, has acquired Veridin Systems Canada Inc., a Canadian company that provides commercial security integration solutions and services. No transaction terms were released.

Labrecque Technologies has Acquired SRK Consulting Canada

Labrecque Technologies Inc., a Canadian company that uses dynamic process simulations to help mining companies predict future performance has acquired SRK Consulting (Canada) Inc., a consulting company that provides geological investigation and interpretation and other services primarily to the mining sector. SRK Consulting was a subsidiary of SRK Consulting Global. No transaction terms were released.

Wolseley Canada has Acquired James Electric Motor Services

Wolseley Canada Inc., a distributer of plumbing, hydronic, HVAC/R, and PVF products and solutions for professional contractors, retailers, and industrial users, has acquired James Electric Motor Services Ltd., a Canadian company that engages in the sale, distribution, and service of pumps and motors in Southern Alberta. No transaction terms were released.

DFENDUS Security Solutions has Acquired Fire & Security Centre

DFENDUS Security Solutions Inc., a Mill Street & Co backed Canadian company that provides integrated security services, has acquired Fire & Security Centre Inc., a Canadian company that provides commercial security and fire protection services. No transaction terms were released.

Consumer Discretionary (Announced)

High Street Capital Partners to Acquire Applied Inventions Management

High Street Capital Partners, LLC, a Cresco Capital Partners backed U.S.-based company that operates as Acreage Holdings, cultivate, process and sell cannabis and its related products to the pharmaceutical industry, has agreed to acquire Applied Inventions Management Corp., a Canadian company that identifies and values assets or businesses. No transaction terms were released.

Consumer Discretionary (Closed)

Impact Group has Acquired Cluep

Impact Group, a CI Capital Partners backed U.S.-based company provides sales, merchandising, and category analytical support to companies in the consumer packaged goods industry, has acquired Cluep Inc., a Petsky Prunier backed Canadian company that operates a mobile advertising platform that targets people based on what they share, how they feel, and where they have been. No transaction terms were released.

Demers, Manufacturier d'Ambulances has Acquired Crestline Coach

Demers, Manufacturier d'Ambulances Inc., a  Caisse de dépôt et placement du Québec, Clearspring Capital Partners and Westerkirk Capital backed Canadian company that doing business as Demers Ambulances, designs, manufactures, and distributes ambulances, has acquired Crestline Coach Ltd., a Canadian company that manufactures and distributes ambulances, buses, and specialty and emergency vehicles. No transaction terms were released.

Hub Promotional Group has Acquired BCG Creations

Hub Promotional Group, a U.S.-based company that provides promotional and marketing solutions, has acquired BCG Creations Inc., a Canadian company that engages in metal casting and manufacturing of promotional products. No transaction terms were released.

Athletica Sport Systems has Acquired Cascadia Sport Systems

Athletica Sport Systems Inc., a Fulcrum Capital Partners backed Canadian company that engages in designing, manufacturing, and installing dasher board systems for sports and recreational activities, has acquired Cascadia Sport Systems Inc., a Canadian company that manufactures gymnasium and arena products for sport and multiuse entertainment facilities worldwide. No transaction terms were released.

Healthcare (Announced)

OMERS Private Equity to Acquire Paradigm Management Services

OMERS Private Equity, a Canadian private equity firm specializing in buyouts of middle market, later stage, and mature companies, has agreed to acquire Paradigm Management Services, LLC, a Summit Partners backed U.S.-based company that, doing business as Paradigm Outcomes, provides acute and ongoing case management services for people with acquired brain injuries, spinal cord injuries, multiple traumas, amputations, burns, and chronic pain. Paradigm Management Services is a subsidiary of Summit Partners No transaction terms were released.

MPX Bioceutical to Acquire Spartan Wellness

MPX Bioceutical Corporation (CNSX:MPX), a Canadian company that together with its subsidiaries, produces medical marijuana and pharma-grade products in North America, has agreed to acquire Spartan Wellness Corporation, a Canadian company that provides health care and wellness programs. Spartan Wellness is a subsidiary of Ninth Square Capital and Veteran Growth. Total transaction value is estimated to be $2.9 million.

Healthcare (Closed)

Good Samaritan Seniors Complex has Acquired Delta View Campus of Care

Good Samaritan Seniors Complex, a Canadian company that operates as a long-term care facility for seniors, has acquired Delta View Campus of Care, a Canadian company that operates residential care facility that provides dialysis, palliative care, complex care, extended care, respite, and rehabilitation services. Delta View Campus of Care was a subsidiary of Devij Holdings. No transaction terms were released.

Heritage Cannabis Holdings to Acquire Purefarma Solutions

Heritage Cannabis Holdings Corp. (CNSX:CANN), a Canadian company that through its subsidiary, PhyeinMed Inc., engages in growing, selling, and distributing medical cannabis has agreed to acquire Purefarma Solutions Inc., a Canadian manufacturer and wholesaler of premium CBD oils. Total transaction value is estimated to be $14.3 million, implying a 28.6x EBITDA multiple and a 7.15x revenue multiple.

Financials (Closed)

Central China International Capital has Acquired Gravitas Securities

Central China International Capital Limited, one of the leading Chinese investment banks, has acquired Gravitas Securities Inc., a Canadian company that is a full-service investment dealer. Gravitas Securities was a subsidiary of Gravitas Financial. No transaction terms were released.

Cal LeGrow has Acquired Optimized Risk & Insurance

Cal LeGrow Inc., a Canadian company that provides insurance, mortgage, investment, retirement, and education planning related financial services, has acquired Optimized Risk & Insurance Ltd., a Canadian company that offers business insurance services. No transaction terms were released.

The Flowr has Acquired The Needle Capital

The Flowr Corporation UCL, a Canadian company that produces medical cannabis products, has acquired The Needle Capital Corp., a Canadian company that evaluates assets and businesses for potential purchases. No transaction terms were released.

Information Technology (Announced)

Australis Capital to Acquire Rthm Technologies

Australis Capital Inc. (CNSX:AUSA), a Canadian principled investment firm, has agreed to acquire Rthm Technologies Inc., a MaRs Discovery District, Investment Arm and District Ventures backed Canadian company that designs, develops, and manufactures a connected patch which sticks to the body and monitors the user’s wellbeing. No transaction terms were released.

Information Technology (Closed)

Volaris Group has Acquired Helm Operations

Volaris Group Inc., a Canadian company that designs and develops software for different industrial applications, has acquired Helm Operations, a Canadian company that develops ship operating software to improve marine fleet management in the United States. Volaris Group was a subsidiary of ClassNK. No transaction terms were released.

Premier Tech has Acquired Manevco Management

Premier Tech Ltd., a  Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ backed Canadian company that manufactures horticulture and agriculture products, flexible packaging equipment, and water treatment systems, has acquired Manevco Management Inc, a Canadian company that engages in the design and rollout of Industrial Internet of Things type connected solutions through the implementation of manufacturing execution systems. No transaction terms were released.

Infor has Acquired Vivonet

Infor, Inc., a  Golden Gate Capital and Koch Equity Development, backed U.S.-based company that provides enterprise software and services worldwide, has acquired Vivonet Inc., a Canadian company that provides cloud-based solutions for the hospitality and food services industries. No transaction terms were released.

BearCom Group, Red Jasper Capital has Acquired Turris Communications

BearCom Group, Inc. an Audax Group backed U.S.-based company sells, rents, installs, and services wireless communication products. Red Jasper Capital Inc. a Canadian consulting company has acquired Turris Communications Ltd., a Canadian designer and manufacturer of two-way radios, WLANs, satellite phones, and mobile communications equipment and accessories. Turris Communications was a subsidy of The Turris Group. No transaction terms were released.

Telecommunication Services (Closed)

Net2Phone has Acquired Versature

Net2Phone Inc., a U.S.-based company that provides a suite of retail voice over IP and Internet telephony solutions, has acquired Versature Corp., a Canadian company that provides hosted PBX phone services to small and medium enterprises. No transaction terms were released.

Utilities (Closed)

Macquarie Group has Acquired Bruc Management Projects

Macquarie Group Limited (ASX:MQG); an Australian provider of diversified financial services globally and the OPSEU Pension Trust a Canadian-based company is the fund manager and administrator of the OPSEU Pension Plan, have acquired Bruc Management Projects, S.L., an owner and operator of renewable energy stations. No transaction terms were released.

Other (Closed)

Flight Centre Travel Group has Acquired UMapped

Flight Centre Travel Group Limited (ASX:FLT), an Australian company that provides travel retailing services for the leisure, corporate, and wholesale travel sectors in Globally, has acquired UMapped Inc, a Canadian company whose platform is used by leading travel bands to engage with their customers throughout the entire travel lifecycle. No transaction terms were released.

Canadian Soccer Business has Acquired Stadium Digital

Canadian Soccer Business, a sports enterprise representing premier soccer properties, has acquired Stadium Digital, a Canadian full-service sport focused digital agency that specializes in driving digital revenue. No transaction terms were released.

Hidden Harbor Capital Partners has Acquired Anchor Danly and AWC Manufacturing

Hidden Harbor Capital Partners, LLC, a U.S.-based private equity firm has acquired Anchor Danly and AWC Manufacturing, a Canadian first class custom steel fabrication center. No transaction terms were released.

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