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Canadian Market Recap: Week Ended December 8

  • Posted By: Clear Li, Chris Tuszynski, Topher Abt, Louis Goldberg

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  • Comments: 2

Market Update

Sixty-eight 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 1.02 cents, ending the week at 78 cents relative to the U.S. dollar. The TSX underperformed the S&P 500 by 1.3% in U.S. dollar terms. WTI Crude oil fell by 1.6%, ending the week at $57.44 per barrel.

According to The Lead Left, yields for new money deals have widened slightly whereas the average yield declined for first-lien institutional term loans so far in the last quarter of 2017.

Valitas Insights: Why M&A Deals Fail – Part 1

This week’s article is part 1 of a 2-part series about why M&A deals fail to succeed in today’s bull market. Part 1 considers M&A deals that fall apart during the pre-acquisition phase, comparing failure rates across different geographies and industries, as well as in private versus public companies.

Read our full article here to find out more.

 

Canadian M&A Transactions[i]

Energy (Announced)

Tilting Capital to Acquire Salida Energy

Tilting Capital Corp. (TSXV:TLL.H), a Canadian provider of communication services and networks, has agreed to acquire Salida Energy Inc., a Canadian company that engages in the exploration and production of oil and gas. Total transaction value is estimated to be $389 million.

Energy (Closed)

Probe Technologies Holdings has Acquired Hunter Well Science

Probe Technologies Holdings, Inc., a U.S.-based company that manufactures tools and equipment for oilfield services companies globally, has acquired Hunter Well Science Ltd., a Canadian company that provides hole logging solutions. No transaction terms were released.

Materials (Closed)

ONCAP; Berenson Capital Partners have Acquired IntraPac International

ONCAP, a Canadian private equity firm, and Berenson Capital Partners, LP, a U.S.-based private equity firm, have acquired IntraPac International Corporation, a U.S.- based specialty packaging company with operations in Canada. No transaction terms were released.

Consumer Discretionary (Closed)

Salmon Capital has Acquired Affinity Electronics of Canada

Salmon Capital Corporation, a Canadian company doing business as Drexel Industries that provides logistics services, has acquired Affinity Electronics of Canada Inc., a Canadian company that distributes electronics and mobile phones. No transaction terms were released.

McKesson Canada has Acquired Well.ca

McKesson Canada Corporation, a Canadian company that delivers pharmaceutical products and supplies, vital medicines, and information technologies to the healthcare industry in Canada, has acquired Well.ca Inc., a Canadian online retailer of health and wellness products. No transaction terms were released.

Hydrofarm has Acquired Eddi's Wholesale Garden Supplies

Hydrofarm, Inc., a Hawthorn Equity Partners Inc.Broadband Capital Management LLC, and Serruya Private Equity backed U.S.-based company that manufactures and distributes indoor gardening and hydroponics products, has acquired Eddi's Wholesale Garden Supplies Ltd., a Canadian distributor of indoor and outdoor gardening products. No transaction terms were released.

Spin Master has Acquired Perplexus

Spin Master Corp. (TSX:TOY), a Canadian company that designs, manufactures, and markets various toys, games, products, and entertainment properties internationally, has acquired Perplexus, LLC, a U.S.-based innovative toy company. Total transaction value is estimated to be $11.4 million.

Consumer Staples (Announced)

Nestlé Health Science to Acquire Atrium Innovations

Nestlé Health Science S.A., a Swiss company that manufactures and distributes nutritional solutions for consumers, patients, and its partners in the healthcare market worldwide, has agreed to acquire Atrium Innovations Inc., a Permira Advisers Ltd.Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ backed Canadian company that engages in the development, manufacture, and commercialization of science-based products for the health and nutrition industry. Total transaction value is estimated to be $2.9 billion.

Consumer Staples (Closed)

Romana Food Brands has Acquired Les Aliments Pizza Romana

Romana Food Brands Corp. (OTCPK:RFBC), an Israeli food manufacturing and producing company, has acquired Les Aliments Pizza Romana Inc., a Canadian pizza producer. No transaction terms were released.

Healthcare (Announced)

New Age Farm to Acquire We Are Kured

New Age Farm Inc. (OTCPK:NWGF.F), a Canadian company that engages in the construction and marketing of warehousing and processing facilities, has agreed to acquire We Are Kured LLC, a U.S.-based company that produces Cannabidiol products, including vaporizer pens, topicals, and gel capsules. Total transaction value is estimated to be $1.1 million.

ImmunoPrecise Antibodies to Acquire ModiQuest Research

ImmunoPrecise Antibodies Ltd. (TSXV:IPA), a Canadian company that provides custom hybridoma development services primarily in North America, has agreed to acquire ModiQuest Research B.V., a Dutch company that offers antibody therapies and products for the biotechnology and pharmaceutical industries. Total transaction value is estimated to be $10.6 million, implying a 3.48x revenue multiple.

Liberty Leaf Holdings to Acquire Just Kush Enterprises

Liberty Leaf Holdings Ltd. (CNSX:LIB), a Canadian company that engages in the development, production, and sale of medical marijuana products, has agreed to acquire Just Kush Enterprises Ltd., a Canadian company that owns and operates a medicinal cannabis production facility. Total transaction value is estimated to be $2.1 million.

Isodiol International to Acquire Canadian National Pharma Group

Isodiol International Inc. (CNSX:ISOL), a Canadian company that develops and manufactures consumer products in North America, has agreed to acquire Canadian National Pharma Group Inc., a Canadian developer and producer of medicines. Total transaction value is estimated to be $1.5 million.

EVITRADE Health Systems to Acquire Cantech Molecular Research

EVITRADE Health Systems Corp. (CNSX:EVA), a Canadian technology company providing automated biomedical care online services for common health problems, has agreed to acquire Cantech Molecular Research Inc., a Canadian medical technology service company for the medical cannabis and hemp industries. No transaction terms were released.

Orca Touchscreen Technologies to Acquire Cultivator Catalyst

Orca Touchscreen Technologies Ltd. (DB:6OT), a Canadian company that develops touchscreen panels for mobile, medical, industrial, and other applications, has agreed to acquire Cultivator Catalyst Corp., a Canadian company that produces medical cannabis. No transaction terms were released.

Isodiol International to Acquire Be Tru Organics

Isodiol International Inc. (CNSX:ISOL), a Canadian company that develops and manufactures consumer products in North America, has agreed to acquire Be Tru Organics, Inc., a U.S.-based company that manufactures homeopathic products using nano-amplified hemp extract and herbs. Total transaction value is estimated to be $2.5 million.

Financials (Announced)

Alexandra Capital to Acquire WMC

Alexandra Capital Corp. (CNSX:AXC), a Canadian company that an engages in the acquisition, exploration, and development of mineral properties in Canada, has agreed to acquire WMC ApS, a Danish company that engages in buying and selling of bitcoins. Total transaction value is estimated to be $20.5 million.

Financials (Closed)

Mcdougall Insurance Brokers has Acquired Mink Insurance Services

Mcdougall Insurance Brokers Limited, a Canadian company that provides insurance solutions to individuals and businesses, has acquired Mink Insurance Services Ltd, a Canadian provider of insurance solutions. No transaction terms were released.

Information Technology (Announced)

Block One Capital to Acquire Finzat

Block One Capital Inc. (TSXV:BLOK), a Canadian venture capital and private equity firm, has agreed to acquire Finzat LLC, a U.S.-based company developing a blockchain system to create a streamlined and digitized mortgage process. Total transaction value is estimated to be $869 thousand.

Crossroad Ventures to Acquire Neptune Dash Nodes Corp

Crossroad Ventures Inc., a Canadian capital pool company, has agreed to acquire Neptune Dash Nodes Corp, a Canadian company that builds and operates master nodes, which are servers on the Dash network that perform specialized functions on the blockchain. No transaction terms were released.

Information Technology (Closed)

VistaVu Solutions has Acquired BPBD

VistaVu Solutions Inc., a Canadian company that provides business management software for the oilfield industry, has acquired BPBD, LLC, a U.S.-based company that offers IT consulting services. No transaction terms were released.

SYS-TECH Technologies has Acquired iTx Technologies

SYS-TECH Technologies Inc., a Canadian developer of mobile web applications, has acquired iTx Technologies, Inc., a Canadian software developer and provider of information technology services. No transaction terms were released.

Hockeystick.co has Acquired LaunchSpot.io

Hockeystick.co Inc., a Launchpad Venture Group, LLCHIGHLINE and Innotech backed Canadian provider of private market data, has acquired LaunchSpot.io, a Canadian company that provides a software-as-a-service product. No transaction terms were released.

CGI Group has Acquired Paragon Solutions

CGI Group Inc. (TSX:GIB.A), a Canadian company that provides information technology and business process services internationally, has acquired Paragon Solutions, Inc., a U.S.-based provider of business and technology consulting services for communications, financial services, healthcare, insurance, and life sciences companies. No transaction terms were released.

Morneau Shepell has Acquired Chestnut Global Partners

Morneau Shepell Inc. (TSX:MSI), a Canadian human resources consulting and technology company, has acquired Chestnut Global Partners, LLC, a U.S.-based company that provides employee assistance programs and related workplace services. No transaction terms were released.

InvestorCOM has Acquired Blue Information Design

InvestorCOM Inc., a Canadian company that designs and develops financial software and provides outsourcing services, has acquired Blue Information Design Inc., a Canadian company that offers investor research, regulatory document design, advisor training, and other consulting services for financial companies. No transaction terms were released.

Other (Announced)

Bowering Projects to Acquire Exploración Auramex

Bowering Projects Ltd., a Canadian company that provides management services to public and private companies, has agreed to acquire Exploración Auramex S.A. de C.V., a Mexican mineral exploration company. No transaction terms were released.

Atlas Engineered Products to Acquire Clinton Roof Truss

Atlas Engineered Products Ltd. (TSXV:AEP), a Canadian company that designs, manufactures, and distributes engineered wood products in North America, has agreed to acquire Clinton Roof Truss Ltd., a Canadian supplier of trusses and engineered wood products. Total transaction value is estimated to be $2.6 million, implying a 0.87x revenue multiple.

Other (Closed)

CREW Marketing Partners has Acquired Riordon Design Group

CREW Marketing Partners Inc., a Canadian strategic marketing agency for entrepreneurs and organizations, has acquired Riordon Design Group, a Canadian multi-disciplinary design studio. No transaction terms were released.

Groupe Christie has Acquired Horizon Medical Services

Groupe Christie Ltd., a Canadian company that distributes medical imaging equipment and systems, has acquired Horizon Medical Services Ltd., a Canadian company that provides imaging solutions and services to the healthcare industry. No transaction terms were released.

3esi-Enersight GROUP has Acquired Aclaro Softworks

3esi-Enersight GROUP, a Canadian company that develops software solutions for upstream oil and gas companies, has acquired Aclaro Softworks Inc., a U.S.-based company that provides corporate reserves management services. No transaction terms were released.

Uniban Canada has Acquired Neuromage

Uniban Canada Inc., a Canadian company that owns and operates auto glass repair and replacement service nationwide, has acquired Neuromage Inc., a Canadian company that sells and installs auto glass. No transaction terms were released.

Insurance Jack; Petley-Hare have Acquired Emmerson Insurance Brokers

Insurance Jack, a Canadian online insurance broker, and Petley-Hare Limited, a Canadian company that provides smart insurance solutions, have acquired Emmerson Insurance Brokers Ltd., a Canadian provider of insurance solutions. 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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