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Canadian M&A Market Recap: Week Ended September 28th

  • Posted By: Andrew Ho, Alexandre Tchurukdichian, Hamzah Rizvi, Dean Walt, Paris Aden

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  • Comments: 0

Market Update

Forty-two Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 5.1% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.05 cents, ending the week at 77 cents. The TSX underperformed the S&P 500 by 0.5% in U.S. dollar terms. WTI Crude oil rose by 3.8%, ending the week at $73.06 per barrel.

According to the Lead Left, 91% of investors are saying that private debt has met their expectations over the past 12 months, with 13% agreeing that it has exceeded expectations. Due to this strong performance, investors are seeking 9.8% in returns from the asset class moving forward.

Canadian M&A Transactions[i]

Materials (Closed)

ClearStream Energy Services has Acquired AFX Materials & Fabrication

ClearStream Energy Services Inc. (TSX:CSM), a company that provides midstream production services to the oil and gas, petrochemical, mining, power, agriculture, forestry, infrastructure, and water treatment sectors in Western Canada, has acquired AFX Materials & Fabrication Ltd., a Canadian company that manufactures wear resistant chromium carbide overlay, structural components, and provides pipe fabrication services. Total transaction value is estimated to be $2.5 million.

Industrials (Closed)

RS Energy Group has Acquired Petroleum Policy Intelligence

RS Energy Group, a Canadian company that provides technically focused energy research, analysis and evaluation, has acquired Petroleum Policy Intelligence, a U.K. company that provides investment, energy trading, and research consulting regarding the geopolitical elements that shape the global oil market. No transaction terms were released.

Consumer Discretionary (Closed)

DCC Technology has Acquired JAM Industries

DCC Technology Limited, an Irish company that is doing business as Exertis, distributes consumer and business technology products and services to retailers in Europe, has acquired JAM Industries Ltd., a Canadian distributer of musical instruments, pro audio and lighting products, and consumer electronics internationally. Total transaction value is estimated to be $170 million, implying a 0.53x revenue multiple.

Consumer Staples (Announced)

CG Partners to Acquire MGC Derma

CG Partners Ltd, a Canadian cannabis investment company, has agreed to acquire MGC Derma d.o.o, a Slovenian manufacturer of Cannabidiol cosmetic products. MGC Derma was a subsidiary of MGC Pharmaceuticals. Total transaction value is estimated to be $15 million.

Trichome Financial to Acquire 180 Smoke

Trichome Financial Corp., a CannaRoyalty Corp. owned Canadian company that is a debt issuing vehicle, has agreed to acquire 180 Smoke LLC, a Canadian manufacturer of electronic cigarettes, hookah, vaping devices, and e-juices. Total transaction value is estimated to be $252 million.

Empire Company to Acquire Farm Boy

Empire Company Limited (TSX:EMP.A), a Canadian company that together with its subsidiaries, engages in the food retail and related real estate businesses, has agreed to acquire Farm Boy Inc., a Berkshire Partners LLC backed Canadian company that owns and operates stores that offer produce, deli, cheese, meats, dairy, and bakery products. Total transaction value is estimated to be $800 million.

Information Technology (Announced)

            Golden Opportunities Fund to Acquire Paradigm Consulting

Golden Opportunities Fund Inc., a Westcap Management backed Canadian venture capital fund, has agreed to acquire Paradigm Consulting Group Inc., a Canadian company that provides information technology and business consulting services to the government, healthcare, insurance, utilities, telecommunications, and banking sectors in North America. No transaction terms were released.

Cortex Business Solutions to Acquire Powervision Software

Cortex Business Solutions Inc. (TSXV:CBX), a Canadian supplier of e-commerce products and services in North America, has agreed to acquire Powervision Software Inc., a Canadian company that specializes in the development of electronic document and workflow management. Total transaction value is estimated to be $7.0 million.

Information Technology (Closed)

Prima Solutions has Acquired ICOD

Prima Solutions SA, a French company that provides product management and multichannel distribution software for the insurance industry, has acquired ICOD Inc, a Canadian company that provides software solutions for the life and health insurance industry. No transaction terms were released.

MVC Tech has Acquired TokeIn

MVC Tech Inc., a Canadian developer of information technology solutions for the healthcare industry to maximize productivity, improve clinical workflow, and offer patient care and management, has acquired TokeIn, a Canadian designer and developer of customer loyalty, retention, and engagement platforms. No transaction terms were released.

Other (Announced)

Array Canada to Acquire Willson & Brown

Array Canada Inc., a Carlyle Group backed company that provides in-store marketing services for retailers and brand manufacturers, has agreed to acquire Willson & Brown, a Polish company that designs and manufactures standard and individual displays. No transaction terms were released.

Other (Closed)

Pièces d'autos Fernand Bégin has Acquired Pièces d'Autos Dumont

Pièces d'autos Fernand Bégin, a Canadian company that sells, recycles and installs automobiles parts, has acquired Pièces d'Autos Dumont, a Canadian retailer of automobile parts. 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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