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Canadian Market Recap: Week Ended February 16

  • Posted By: Chris Angelatos, Ty Wilson, Ali Saleh, Christopher Megraw and Paris Aden

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  • Comments: 19

Market Update

Twenty-Two Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 14.6% lower than the comparable period in 2016. The Canadian dollar appreciated by 0.47 cents, ending the week at 80 cents. The TSX underperformed the S&P 500 by 0.8% in U.S. dollar terms. WTI Crude oil rose by 4.4%, ending the week at $61.61 per barrel.

According to The Lead Left,  the U.S. leveraged loan market has continued its steady growth, with US$110bn in completed leveraged loan issuance so far this quarter. The mix of deals is comprised of a solid US$33bn, or 30%, of leveraged M&A issuance. This is an increase from a recent low of ~15% in late 2016, and down from a high of ~55% in mid-2015. 

 

Canadian M&A Transactions[i]

Energy (Announced)

Bird River Resources to Acquire High Point Oil

Bird River Resources Inc. (CNSX:BDR), a Canadian petroleum and natural gas resource exploration and acquisition company, has agreed to acquire High Point Oil Inc., a Canadian oil and gas exploration and development company focused on light oil reserves with existing infrastructure. Total transaction value is estimated to be $5.52 million.

Materials (Announced)

Prophecy Development to Acquire 1104002 B.C.

Prophecy Development Corporation (TSX:PCY), a Canadian mining company with properties and energy projects internationally has agreed to acquire 1104002 B.C. Ltd., a company that owns and operates 105 unpatented lode mining reserves adjacent to Prophecy’s Gibellini project in Eureka County, Nevada.. Total transaction value is estimated to be $350 thousand.

Cobalt Power Group to Acquire Ontario Cobalt Property Developers

Cobalt Power Group Inc. (TSXV:CPO), a Canadian mining company focused on the exploration and development of cobalt, has agreed to acquire Ontario Cobalt Property Developers Inc., a mineral exploration company. Total transaction value is estimated to be $3.60 million.

Materials (Closed)

Oatey has Acquired G.F. Thompson

Oatey Company, Inc., a U.S.-based manufacturer and distributor of plumbing products for residential and commercial plumbing industries, has acquired G.F. Thompson Company Ltd., a Canadian manufacturing and distributor of sealants, compounds, and related accessories to plumbing, HVAC, industrial, and retail trades. No transaction terms were released.

Industrials (Announced)

GFL Environmental to Acquire Deep Foundations Contractors

GFL Environmental Inc., a Hawthorn Equity Partners, HPS Investment Partners, and Macquarie Infrastructure Partners backed Canadian company that provides solid and liquid waste management and soil remediation in North America, has agreed to acquire Deep Foundations Contractors Inc., a Canadian company that provides foundation and shoring solutions for both public and private contracts. No transaction terms were released.

Industrials (Closed)

Novacap Investments has Acquired Mailhot Industries

Novacap Investments Inc., has acquired Mailhot Industries Inc., a Canadian company that designs and manufactures hydraulic cylinders. No transaction terms were released.

Mullen Group has Acquired DWS Logistics

Mullen Group Ltd. (TSX:MTL), a Canadian trucking and logistics company with specialized transportation services for the oil and gas industry in North America, has acquired DWS Logistics Inc., a Canadian company that provides value-added warehousing and distribution including order fulfillment, cross docking, and transloading. No transaction terms were released.

ENGIE Services has Acquired Les Contrôles A.C.

ENGIE Services Inc., a Canadian facilities management company that prioritizes energy efficiency for customers across North America, has acquired Les Contrôles A.C. Inc, a Canadian automation and electromechanical services company for buildings. No transaction terms were released.

Consumer Discretionary (Announced)

Tabu Equity Investments to Acquire Octavia Vodka

Tabu Equity Investments Inc., a Canadian private investment firm with a focus on cannabis companies has agreed to acquire Octavia Vodka Ltd., a Canadian company that produces vodka drinks. Total transaction value is estimated to be $300 thousand.

Consumer Discretionary (Closed)

Owen & Company has Acquired Zedbed

Owen & Company Ltd., a Novacap Investments backed Canadian company that manufactures and markets mattresses and bedding products, has acquired Zedbed Inc., a Canadian manufacturer of eco-friendly memory foam sleep products and accessories. No transaction terms were released.

Consumer Staples (Closed)

Marc Anthony Cosmetics has Acquired Cake Beauty

Marc Anthony Cosmetics Inc., a TA Associates Management backed Canadian company that offers hair care products internationally, has acquired Cake Beauty Inc., a Canadian company that develops and manufactures vegan and cruelty-free bath and body cosmetics products. No transaction terms were released.

Healthcare (Announced)

Isodiol International to Acquire Canadian National Pharma Group

Isodiol International Inc. (CNSX:ISOL), a Canadian company that develops and manufactures Cannabidiol (CBD) products in North America, has agreed to acquire Canadian National Pharma Group Inc., a pharmaceutical company engaged in developing and producing generic medicines. Total transaction value is estimated to be $6.0 million.

Financials (Closed)

Financial Horizons Group has Acquired ABEX Financial Services

Financial Horizons Group Inc., a Canadian subsidiary of Great-West LifeCo Inc. that operates as a managing general agency offering various insurance and risk management products and services, has acquired ABEX Central Financial Services Ltd., a Canadian managing general agency based in Barrie, Ontario. The target was a subsidiary of the ABEX Group of Companies. No transaction terms were released.

Information Technology (Announced)

Telesystem to Acquire OnMobile Systems

Telesystem Ltd., a Caisse de dépôt et placement du Québec backed Canadian media and technology holding company, has agreed to acquire OnMobile Systems Inc. USA, a H&Q Asia Pacific and Argo Global Capital backed mobile entertainment and sound company. The target was a subsidiary of Infosys Ltd. Total transaction value is estimated to be $3.12 million.

Information Technology (Closed)

Xactly has Acquired Obero Solutions

Xactly Corporation, a Vista Equity Partners backed U.S.-based compensation solutions and sales performance management company, has acquired Obero Solutions Inc., a Canadian management consulting company focused on corporate performance management and business analytics internationally. No transaction terms were released.

Utilities (Announced)

InstarAGF Asset Management to Acquire Creative Energy

InstarAGF Asset Management Inc., has agreed to acquire Creative Energy Vancouver Platforms Inc., a utility company with a focus on low carbon neighbourhood energy systems. No transaction terms were released.

Other (Closed)

HUB International has Acquired Pointbreak Consulting Group

HUB International Limited, an AlpInvest Partners and Hellman & Friedman backed U.S.-based company that provides insurance brokerage services internationally, has acquired Pointbreak Consulting Group Ltd, a Canadian consulting firm focused on employment benefits. 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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