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Canadian Market Recap: Week Ended February 2

  • Posted By: Andrew Schmidt, Gavin Ockrant, Parsa Pouyan, Hamzah Rizvi, and Paris Aden

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  • Comments: 1

 

Market Update

 

Sixty-five Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 20.7% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.54 cents, ending the week at 81 cents relative to the U.S. dollar. The TSX underperformed the S&P 500 by 0.7% in U.S. dollar terms. WTI Crude oil fell by 1.0%, ending the week at $65.45 per barrel.

According to The Lead Left, the Tuesday announcement of Blackstone’s purchase of a 55% stake in Thomson Reuters Financial and Risk business at a valuation of $20 billion USD marks it as the largest LBO deal since 2013. That year featured buyout deals of $28 billion USD and $25 billion USD, for HJ Heinz and Dell Computer respectively.

 

Canadian M&A Transactions[i]

 

Energy (Closed)

MatRRix Energy Technologies has Acquired D2 Drilling

MatRRix Energy Technologies Inc. (TSXV:MXX), a Canadian company that engages in the acquisition and supply of horizontal and directional drilling technologies for the oil and gas industry in North America, has acquired D2 Drilling Inc., a Canadian company that owns an oil drilling rig. Total transaction value is estimated to be $3.2 million.

Materials (Announced)

Rupert Resources to Acquire Northern Aspect Resources

Rupert Resources Ltd. (TSXV:RUP), a Canadian company that engages in the acquisition and exploration of mineral properties in Finland and Canada, has agreed to acquire Northern Aspect Resources Ltd., a Canadian company that explores and mines mineral properties. Total transaction value is estimated to be $4.18 million.

Industrials (Announced)

Stantec to Acquire Occam Engineers

Stantec Inc. (TSX:STN), a Canadian company that provides infrastructure and facilities consulting services for clients in the public and private sectors internationally, has agreed to acquire Occam Engineers Inc., a U.S. based company that operates as a multi-discipline engineering consulting firm. No transaction terms were released.

Envista to Acquire SAMAC Engineering

Envista Inc., a U.S. company that operates as a global forensic engineering company, has agreed to acquire SAMAC Engineering Ltd., a Canadian company that offers failure analysis services to both the insurance and legal industries. No transaction terms were released.

FV Pharma to Acquire Century Financial Capital Group

FV Pharma Inc., a Canadian company that focuses on the development and production of pharmaceutical-grade cannabis products, has agreed to acquire Century Financial Capital Group Inc., a Canadian company that leases operating and manufacturing equipment in Canada. No transaction terms were released.

Industrials (Closed)

Vertex Resource Group has Acquired HMA Land Services

Vertex Resource Group Ltd. (TSXV:VTX), a Canadian company that provides environmental and industrial services in North America, has acquired HMA Land Services Limited, a Canadian company that provides project management and land services for energy, pipeline, utility, and infrastructure industries in Canada. No transaction terms were released.

TerraVest Capital has Acquired MaXfield Group

TerraVest Capital Inc. (TSX:TVK), a Canadian company that manufactures and sells tanks and pressure vessels for fuel and liquid containment in North America, has acquired MaXfield Group Inc., a Canadian company that manufactures processing, storage and transportation equipment for the propane, anhydrous ammonia and oil and gas markets. Total transaction value is estimated to be $21.0 million.

CAE has Acquired Pelesys Learning Systems

CAE Inc. (TSX:CAE), a Canadian company that together with its subsidiaries, designs, manufactures, and supplies simulation equipment globally, has acquired Pelesys Learning Systems Inc., a Canadian company that offers training and e-learning solutions and services to airlines and airline training organizations. No transaction terms were released.

Linamar has Acquired MacDon Industries

Linamar Corporation (TSX:LNR), a Canadian manufacturer and distributor of precision metallic components, modules, and systems globally, has acquired MacDon Industries Ltd., a Canadian company that designs, manufactures, and distributes harvesting equipment. Total transaction value is estimated to be $1.2 billion, implying a 2x revenue multiple.

Consumer Discretionary (Announced)

Hiku Brands Company to Acquire Maïtri Group

Hiku Brands Company Ltd. (CNSX:HIKU), a Canadian manufacturer and distributer of coffee, clothing, and cannabis, has agreed to acquire Maïtri Group Inc., a Canadian company that manufactures cannabis accessories. Total transaction value is estimated to be $1.75 million.

Consumer Discretionary (Closed)

Venanpri Tools has Acquired Burgon & Ball

Venanpri Tools, a Canadian manufacturer and distributor of manual hand tool products, has acquired Burgon & Ball Limited, a U.K.-based company that manufactures and supplies premium gardening, agricultural, and giftware products. No transaction terms were released.

McCord Stewart Museum has Acquired Fashion Museum

McCord Stewart Museum, a Canadian company that operates as a museum, has acquired Fashion Museum, a Canadian company that operates as a fashion museum. No transaction terms were released.

Sound United has Acquired Classé Audio

Sound United, a U.S. company that supports and curates a diverse array of audio brands, has acquired Classé Audio Inc, a Canadian company that manufactures music amplifiers and theater components. No transaction terms were released.

Healthcare (Announced)

Ravenquest Biomed to Acquire Bloomera

Ravenquest Biomed Inc. (CNSX:RQB), a Canadian company that engages in the exploration and development of mineral properties in Canada, has agreed to acquire Bloomera Inc., a Canadian company that produces cannabis for medical purposes. Total transaction value is estimated to be $33.5 million.

Aphria to Acquire Broken Coast Cannabis

Aphria Inc. (TSX:APH), a Canadian manufacturer and distributor of medical cannabis, has agreed to acquire Broken Coast Cannabis Ltd., a Canadian company that produces medical cannabis products. Total transaction value is estimated to be $230 million.

Luminor Medical Technologies to Acquire Rise Research

Luminor Medical Technologies Inc. (CNSX:LMT), a Canadian medical diagnostic company that focuses on acquisition, development, and commercialization of diagnostic tests and risk assessment technologies in North America, has agreed to acquire Rise Research Inc., a Canadian company that develops cannabis consumer products. Total transaction value is estimated to be $3.9 million.

Healthcare (Closed)

Abattis Bioceuticals has Acquired GT Therapeutics

Abattis Bioceuticals Corp. (OTCPK:ATTB.F), a Canadian biotechnology company that, researches, develops, licenses, and markets ingredients and formulas for use in the biopharma, nutraceutical, cosmetic, and animal nutrition markets in Canada, has acquired GT Therapeutics Corporation, a Canadian company that, manufactures medical marijuana vaporizers. Total transaction value is estimated to be $9.9 million.

ABcann Global has Acquired Harvest Medicine

ABcann Global Corporation (TSXV:ABCN), a Canadian company that manufactures and distributes medical cannabis, has acquired Harvest Medicine Inc., a Canadian company that operates a cannabis discovery center and clinic. Total transaction value is estimated to be $3.0 million.

Financials (Announced)

Irri-al-Tal to Acquire Sagittarius Capital

Irri-al-Tal Ltd., an Israeli company that plans, designs, and installs turnkey projects and solutions for irrigation and agricultural needs, has agreed to acquire Sagittarius Capital Corporation, a Canadian capital pool company. No transaction terms were released.

Financials (Closed)

Harvard Western Ventures has Acquired Hoff Insurance

Harvard Western Ventures Inc., a Canadian company that provides insurance services, has acquired Hoff Insurance Inc., a Canadian company that provides customer-oriented insurance brokerage services. No transaction terms were released.

Axis Auto Finance has Acquired Cars on Credit Financial

Axis Auto Finance Inc. (TSXV:AXIS), a Canadian company that provides non-standard auto financing solutions to Canadians who do not qualify for traditional bank financing for their used vehicle purchase, has acquired Cars on Credit Financial Inc., a Canadian company that provides sub-prime automotive loans and leases. Total transaction value is estimated to be $10.9 million.

Information Technology (Announced)

Abattis Bioceuticals to Acquire CannaNUMUS Blockchain

Abattis Bioceuticals Corp. (OTCPK:ATTB.F), a Canadian biotechnology company that, researches, develops, licenses, and markets ingredients and formulas for use in the biopharma, nutraceutical, cosmetic, and animal nutrition markets in Canada, has agreed to acquire CannaNUMUS Blockchain Inc., a Canadian company developing a cannabis-oriented crypto currency. Total transaction value is estimated to be $12.0 million.

Victory Square Technologies to Acquire Cassia Research

Victory Square Technologies Inc. (CNSX:VST), a Canadian company that engages in the sports, personalized healthcare, and entertainment businesses, has agreed to acquire Cassia Research Inc., a Plug and Play Tech Center backed Canadian company that operates an online platform that builds and manages client relationships and higher performing investment portfolios. Total transaction value is estimated to be $1.5 million.

Heritage Cannabis Holdings to Acquire Stanley Park Digital Ltd

Heritage Cannabis Holdings Corp. (CNSX:CANN), a Canadian company that engages in the growing, selling, and distributing medical cannabis in Canada, has agreed to acquire Stanley Park Digital Ltd, a Canadian company that provides block chain consulting and development services. Total transaction value is estimated to be $500 thousand.

MYM Nutraceuticals to Acquire Budly Software

MYM Nutraceuticals Inc. (DB:0MY), a Canadian company that develops and markets hemp-based cannabidiol extracts and oil infused nutraceutical products, has agreed to acquire Budly Software Inc., a Canadian software company that, develops a mobile application that enables patients to order medicinal cannabis from their local dispensary. Total transaction value is estimated to be $2.9 million.

The Silanna Group Pty to Acquire Appulse Power

The Silanna Group Pty Ltd., an Australian company that manufactures integrated circuits, has agreed to acquire Appulse Power Inc., a Canadian company that designs and manufactures semiconductor application-specific integrated circuits. No transaction terms were released.

Information Technology (Closed)

Perseus Operating Group has Acquired Real Estate Digital

Perseus Operating Group, a Canadian company that develops software for vertical markets, has acquired Real Estate Digital, a U.S. company that designs and develops software solutions for real estate franchisers, brokerages, agents, and multiple listing service associations. No transaction terms were released.

Brookfield Global Integrated Solutions Canada has Acquired Critical Solutions Group

Brookfield Global Integrated Solutions Canada LP, a company that provides integrated real estate management services to clients in Canada, has acquired Critical Solutions Group LLC., a U.S. company that provides data center services, including commissioning, data center consulting, maintenance, and training. No transaction terms were released.

Greenbank Capital has Acquired Kabaddi Games

Greenbank Capital Inc. (OTCPK:GRNB.F), a Canadian company that, invests in Canadian small cap companies, has acquired Kabaddi Games Inc., a Canadian company that develops and offers mobile application game based on the Kabaddi sport. No transaction terms were released.

DLT Resolution has Acquired AJD Data Services

DLT Resolution Inc. (OTCPK:DLTI), a American company that operates as a health information exchange company, has acquired AJD Data Services Inc., a Canadian company that offers document management solutions and services. Total transaction value is estimated to be $1.9 million.

Pandell Technology has Acquired LandWorks

Pandell Technology Corporation, an Emerging Capital Partners and Adventure Capital Inc. backed Canadian company that provides financial and land management software for oil and gas companies in North America, has acquired LandWorks, Inc., a U.S. company that provides software, consulting, and land asset management and geographic information system solutions. No transaction terms were released.

N. Harris Computer has Acquired ACCEO Solutions

N. Harris Computer Corporation, a Canadian company that develops software solutions for customers in utility, public sector and schools group, and healthcare group businesses in North America, has acquired ACCEO Solutions Inc., a Canadian company that designs, develops and offers banking, accounting, business, and cloud computing solutions. Total transaction value is estimated to be $250 million.

Maplebear has Acquired UNATA

Maplebear Inc., a Canaan Partners, Kleiner Perkins Caufield & Byers, Sequoia Capital, Comcast Ventures, Unilever Ventures Limited, Wellcome Trust, Khosla Ventures and Y Combinator Management backed U.S. company that, provides online grocery delivery services in America, has acquired UNATA Inc., a Canadian company that provides a marketing and analytics platform for the retail market. No transaction terms were released.

F12 Networks has Acquired Sitkum I.T. Managed Services

F12 Networks Inc., a Canadian company that provides Hardware-as-a-Service, managed services, and cloud solutions, has acquired Sitkum I.T. Managed Services Ltd., a Canadian company that offers managed IT services and infrastructure support. No transaction terms were released.

Jonas Operating Group has Acquired Blayhall Marine

Jonas Operating Group, a Canadian company that owns and operates software companies worldwide, has acquired Blayhall Marine Limited, a U.K. company that offers a multicurrency transaction processing and reporting solution. No transaction terms were released.

UniPrint.net has Acquired ePRINTit USA In

UniPrint.net Corp., a Canadian company that develops enterprise print management and output solutions, has acquired ePRINTit USA Inc., a U.S. company that develops cloud-based printing 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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