Value Unleashed

 

Market Update

Thirty-seven Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 6.2% higher than the comparable period in 2016. The Canadian dollar depreciated by 0.06 cents, ending the week at 79 cents relative to the U.S. dollar. The TSX underperformed the S&P 500 by 2.0% in U.S. dollar terms. WTI Crude oil fell by 1.0%, ending the week at $58.38 per barrel.

According to The Lead Left, despite complaints by lenders of supply and demand imbalances, syndicated middle market LBO issuances in 2017 have already surpassed 2016 levels. Year to date, loan issuances have reached US$24.2 billion, the highest level tracked in the post credit crisis period.

Logistics & M&A - Part 2: Logistics at the Heart of E-Commerce Proliferation

This article is the second issue in our Logistics & M&A series. In our first article, we discussed a general overview of the M&A landscape and alluded to five trends in the industry. This second issue will outline three methods companies are employing to adapt to the increasingly popular e-commerce industry, and how the Logistics industry serves as a catalyst to retailers capitalizing on this demand. 

The Logistics industry was once a secondary focus for retailers, but has recently become the focal point for industry players looking to solidify the value proposition of their e-commerce operations. No longer just a tool used to move products from point A to point B, logistics offerings that are efficient and differentiated can be all the difference in today’s ultra-competitive retail landscape.

Read our full article to learn more.

And in case you missed it…

Divestopedia shared our take on private market M&A fee structures.

 

Canadian M&A Transactions[i]

Energy (Announced)

            Senator Minerals to Acquire Keefe Lake Uranium Project

Senator Minerals Inc. (TSXV:SNR), a Canadian junior exploration company that engages in the acquisition, exploration, and evaluation of mineral resource properties in North America, has agreed to acquire Keefe Lake Projects Inc., a Canadian company that owns and operates uranium mining properties. Total transaction value is estimated to be $3.2 million.

Materials (Announced)

            Conquest Resources to Acquire Northern Nickel Mining

Conquest Resources Limited (TSXV:CQR), a Canadian company that, together with its subsidiaries, engages in the exploration, evaluation, and development of mineral properties, has agreed to acquire Northern Nickel Mining Inc., a Canadian company that owns and operates a gold mine. Total transaction value is estimated to be $450 thousand.

            Prize Mining to Acquire Scion

Prize Mining Corporation (TSXV:PRZ), a Canadian junior mining company that engages in the acquisition, exploration and development of mining properties, has agreed to acquire Scion Mines S.A. de C.V., a Mexican company that provides copper exploration services. The transaction allows Prize to indirectly acquire a 100% interest in the Manto Negro Copper Project. No transaction terms were released.

            LSC Lithium to Acquire Alqa

LSC Lithium Corporation (TSXV:LSC), a Canadian producer of lithium brines in Argentina, has agreed to acquire Alqa Lithium S.A., an Argentinian company that owns and mines lithium brine deposits. Total transaction value is estimated to be $2.0 million.

            Highvista Gold to Acquire Various Properties in Ontario

Highvista Gold Inc., a Canadian company that controls various mining properties in Mexico, has entered into an asset purchase agreement with Prince Arthur Capital Corporation to acquire two leased properties and one development property in Windsor, Ontario and the optioning of one development property in St. Catherines, Ontario. No transaction terms were released.

            Serabi Gold to Acquire Chapleau Resources

Serabi Gold plc (AIM:SRB), a U.K.-based company that focuses on gold mining and development in Brazil, has agreed to acquire Chapleau Resources Ltd., a Canadian company that engages in the acquisition and exploration of gold and copper projects in Brazil and Peru. Total transaction value is estimated to be $66.6 million.

Industrials (Announced)

            Clearford Water Systems to Acquire Koester Canada

Clearford Water Systems Inc. (TSXV:CLI), a Canadian company that designs, manufactures, and markets unified water management and sanitation systems globally, has agreed to acquire Koester Canada Inc., a Canadian company that offers water and wastewater system design, engineering, construction, operation, and maintenance services. Koester Canada is a subsidiary of Koester Associates, Inc. Total transaction value is estimated to be $7.8 million, reflecting a 2.6x revenue multiple.

            OMERS Private Equity to Acquire Trescal

OMERS Private Equity, a Canadian private equity firm, has agreed to acquire Trescal SA, a French company that provides calibration and management services for test measurement equipment. No transaction terms were released.

Industrials (Closed)

            Discover Energy has Acquired iQ Power Asia 

Discover Energy Corp., a Canadian company that works with the world's leading manufacturers and users to supply advances in battery technology, has acquired iQ Power Asia Inc., a South Korean company that manufactures and supplies automotive and commercial batteries. No transaction terms were released.

Consumer Discretionary (Announced)

            Civeo to Acquire Noralta Lodge

Civeo Corporation (NYSE:CVEO), an American company that provides workforce accommodation, logistics, and facility management services globally, has agreed to acquire Noralta Lodge Ltd, a Canadian company that provides premium lodging for workers in Western Canada’s energy sector. Total transaction value is estimated to be $363 million, reflecting a 5.1x EBITDA multiple.

Kew Media Group to Acquire Sienna Films

Kew Media Group Inc. (TSX:KEW), a Canadian media content production company, has agreed to acquire Sienna Films Inc., a Canadian film and television production company. Total transaction value is estimated to be $3.0 million, with an additional $3.0 million available in contingent consideration.

Consumer Discretionary (Closed)

            LivWell Enlightened Health has Acquired 51st Parallel Life Sciences

LivWell Enlightened Health, an American medical and recreational marijuana company, has acquired 51st Parallel Life Sciences Ltd., a Canadian company that retails cannabis for recreational purposes. No transaction terms were released.

            Namaste Technologies has Acquired VapeBr

Namaste Technologies Inc. (OTCPK:NXTT.F), a Canadian company that distributes vaporizers and smoking accessories through e-commerce sites, has acquired VapeBr, a Brazilian vaporizers retailer. No transaction terms were released.

Consumer Staples (Announced)

            Maple Leaf Foods to Acquire Field Roast

Maple Leaf Foods Inc. (TSX:MFI), a Canadian consumer packaged meats company, has agreed to acquire Field Roast Grain Meat Co. Inc., an American company that produces and markets grain-based meat products. Total transaction value is estimated to be $120 million, reflecting a 3.2x revenue multiple.

            Arterra to Acquire Laughing Stock Vineyards

Arterra Wines Canada, Inc., an Ontario Teachers’ Pension Plan backed Canadian company that produces and markets wines and related products in North America, has agreed to acquire Laughing Stock Vineyards Inc., a Canadian premium boutique winery. No transaction terms were released.

            Marapharm Ventures to Acquire Green Leaf Wellness

Marapharm Ventures Inc. (DB:2M0), a Canadian company that invests in the medical and recreational cannabis space, has agreed to acquire Green Leaf Wellness, an American company that engages in the sale of medical cannabis. Total transaction value is estimated to be $1.6 million.

Consumer Staples (Closed)

            Romana Food Brands has Acquired Pasta Romana Foods

Romana Food Brands Corp. (OTCPK:RFBC), an Israeli company that provides renewable energy solutions, has acquired Pasta Romana Foods Inc, a Canadian company that sells pasta. No transaction terms were released.

            Premium Brands Holdings has Acquired Raybern Foods

Premium Brands Holdings Corporation (TSX:PBH), a Canadian company that manufactures and distributes food products in North America, has acquired Raybern Foods, LLC, an American company that produces and sells sandwiches. Raybern Foods was a subsidiary of TSF Consumer Partners. No transaction terms were released.

            Riverside has Acquired Kii Naturals

The Riverside Company, an American private equity firm, has acquired Kii Naturals Inc., a Canadian provider of all-natural artisan products. Riverside will combine Kii Naturals with Nustef Baking Ltd, a Canadian maker of waffle cookies and artisan crackers. No transaction terms were released.

            Genesus has Acquired Porc-Ex France

Genesus Inc., a Canadian company that provides research and development of swine genetics, has acquired Porc-Ex group, a French company that exports and distributes breeding pigs. No transaction terms were released.

Healthcare (Announced)

            Isodiol International to Acquire C3 Global Biosciences

Isodiol International Inc. (CNSX:ISOL), a Canadian company that develops and manufactures consumer products in North America, has agreed to acquire C3 Global Biosciences, Inc., an American company that develops health solutions using cannabidiol science. Total transaction value is estimated to be $1.0 million.

            TJR Coatings to Acquire DNA Logix Canada

TJR Coatings Inc., a Canadian company that was previously engaged in the manufacturing and distribution of wood coating products, has agreed to acquire DNA Logix Canada Inc., a company that engages in the marketing and distributing of diagnostic testing solutions for detection of the Zika virus and other mosquito-borne flaviviruses. Total transaction value is estimated to be $300 thousand.

Information Technology (Announced)

            360 Blockchain to Acquire Pressland

360 Blockchain Inc. (CNSX:CODE), a Canadian company that invests exclusively in blockchain-based technology, has agreed to acquire Pressland, an American company that offers crowd-sourced directory of media outlets and professionals. Pressland is a subsidiary of Chaotic Neutral LLC. No transaction terms were released.

KuuHubb to Acquire Neybers

KuuHubb Inc. (TSXV:KUU), a Canadian technology company that focuses on the acquisition, development, and distribution of lifestyle and mobile video game applications, has agreed to acquire Neybers AB, a Swedish company that develops interior design games. No transaction terms were released.

            GAR to Acquire Netcoins

GAR Limited (CNSX:GL), a Canadian company that engages in the acquisition and exploration of minerals properties in Northern Ontario, has agreed to acquire Netcoins Inc., a Canadian company that develops software to better facilitate the purchase and sale of Bitcoin. Total transaction value is estimated to be $9.6 million.

Information Technology (Closed)

            Fineqia has Acquired IXL PremFina

Fineqia International Inc. (CNSX:FNQ), a Canadian company that provides support and administer services for debt and equity security issuances, has acquired IXL PremFina Limited, a Draper Esprit, Thomvest Ventures, Rakuten Investment Management, Talis Capital, Rakuten, Rubicon Venture Capital and Emery Capital backed U.K.-based company that develops policy management software for insurance brokers. IXL PremFina was a subsidiary of IXL Holdings Limited. No transaction terms were released.

            InnovaSea Systems has Acquired Amirix Systems

InnovaSea Systems, Inc., a Cuna del Mar backed American company that designs and develops open ocean products and services for the aquaculture industry, has acquired Amirix Systems Inc., a Canadian company that develops customized embedded systems for the telecommunications and defense industry. No transaction terms were released.

            Trend Micro has Acquired IMMUNIO

Trend Micro Incorporated (TSE:4704), a Lord Abbett & Co backed Japanese company that develops and sells security solutions, has acquired IMMUNIO Inc., a Canadian company that provides automatic detection and protection against application security vulnerabilities. No transaction terms were released.

            Optiv Security has Acquired Conexsys

Optiv Security Inc., a KKR, Blackstone, Torreal and ACE & Company backed American company that provides cyber security solutions, has acquired Conexsys Communications Ltd., a Canadian company that engages in the development, deployment, and support of enterprise security and network solutions. No transaction terms were released.

            Converge Technology Partners has Acquired Northern Micro

Converge Technology Partners Inc., a Canadian company that develops a national platform of regionally focused IT infrastructure firms in the United States and Canada, has acquired Northern Micro Inc., a Canadian IT solutions provider of client devices and data centrenamast infrastructure. No transaction terms were released.

Telecommunication Services (Closed)

            Enghouse Systems has Acquired XConnect

Enghouse Systems Limited (TSX:ENGH), a Canadian company that develops and sells enterprise oriented applications software solutions worldwide, has acquired XConnect GmbH, a German company that provides number portability management services. XConnect GmbH  is a subsidiary of XConnect Global Networks Ltd. No transaction terms were released.

Other (Announced)

            Crown Point Energy to Acquire Apco Austral

Crown Point Energy Inc. (TSXV:CWV), a Canadian oil and gas company that explores, develops, and produces petroleum and natural gas properties in Argentina, has agreed to acquire Apco Austral S.A., an Argentinian mining company that operates as a subsidiary of Apco Oil & Gas International Inc. Total transaction value is estimated to be $37.4 million.

Other (Closed)

            K-Bro Linen has Acquired Fishers Topco

K-Bro Linen Inc. (TSX:KBL), a Canadian company provides laundry and linen processing services to hospitals and hotels, has acquired Fishers Topco Ltd, a U.K. based commercial laundry business. Fishers Topco was an investment company of Caird Capital LLP. Total transaction value is estimated to be $35.0 million, reflecting a 7.0x EBITDA multiple.

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