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Canadian Market Recap: Week Ended February 23

  • Posted By: Gavin Ockrant, Ty Wilson, Melissa Shang, Parsa Pouyan, and Paris Aden

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Market Update

Fifty Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 10% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.82 cents, ending the week at 79 cents. The TSX underperformed] the S&P 500 by 0.4% in U.S. dollar terms. WTI Crude oil rose by 3.9%, ending the week at $63.10 per barrel.

 

According to The Lead Left, private equity is becoming increasingly active in purchasing venture-backed startups. These buyouts now account for nearly a fifth (18.5%) of all VC-backed exits. This is an increase from ~14% in 2016 and ~10% a decade ago.


Valitas Insights: The Year Ahead – What does 2018 have in store for Canadian business owners?

Stay tuned as we are currently working on an article with Pierre Ouimet, the Head Investment Strategist of UBS Bank (Canada), that lays out the Canadian business landscape for the remainder of 2018. In the meantime, check out Mr. Ouimet’s recent appearance on BNN where he provides his take on the outlook of the Canadian economy.

 

Canadian M&A Transactions[i]

Energy (Announced)

STEP Energy Services to Acquire Tucker Energy Services

STEP Energy Services Ltd. (TSX:STEP), a Canadian company that provides specialized and integrated coiled tubing and fracturing solutions in North America, has agreed to acquire Tucker Energy Services Holdings Inc., a U.S. oil and gas company that provides fracturing, coiled tubing solutions and wireline services. Total transaction value is estimated to be $275 million.

Materials (Announced)

Boreal Energy Metals to Acquire Guldgruvan Cobalt Project

Boreal Energy Metals Corporation, a Canadian company that owns cobalt and nickel mining properties, has agreed to acquire the Guldgruvan Cobalt Project owned by EMX Royalty Corporation, a Swedish metals and mining company that focuses on exploration discovery and royalty generation. No transaction terms were released.

Materials (Closed)

Royal Road Minerals has Acquired Minerales Camino Real

Royal Road Minerals Limited (TSXV:RYR), a Canadian gold and copper focused mineral exploration and development company, has acquired Minerales Camino Real SAS, a Columbian company that provides mineral exploration services. Total transaction value is estimated to be $240 thousand.

Industrials (Closed)

Ag Growth International has Acquired Danmare Group

Ag Growth International Inc. (TSX:AFN), a Canadian company that manufactures and distributes grain handling, storage, and conditioning equipment, has acquired Danmare Group Inc., a Canadian company that provides engineering solutions and project management services to the food industry. No transaction terms were released.

POS BPC Manufacturing Acquired

POS BPC Manufacturing Corp., a Canadian company that offers research and development services for biological materials, has been acquired. The target was a subsidiary of Naturally Splendid Enterprises Ltd. Total transaction value is estimated to be $2.79 million.

Information Technology (Closed)

Solium Capital has Acquired Advanced-HR

Solium Capital Inc. (TSX:SUM), a Canadian company that provides cloud-enabled services for administration and financial reporting, has agreed to acquire Advanced-HR Inc., a U.S. company that develops compensation planning software. No transaction terms were released.

Accedian Networks has Acquired Performance Vision

Accedian Networks Inc., a NB Alternatives Advisers and Bridge Growth Partners backed Canadian company that provides performance assurance solutions for mobile backhaul and small cells, has acquired Performance Vision SA, a Xange Private Equity backed French company that provides application performance monitoring (APM) and network visibility solutions. No transaction terms were released.

Other (Announced)

Pivot Pharmaceuticals to Acquire Agro-Biotech

Pivot Pharmaceuticals Inc. (OTCPK:PVOT.F), a Canadian pharmaceutical company that commercializes therapeutic products, has agreed to acquire Agro-Biotech Inc., a Canadian company that manufactures biological products. Total transaction value is estimated to be $70.1 million.

Martello Finance Company to Acquire Stellwagen Group

Martello Finance Company Limited, a Canadian investment firm, has agreed to acquire Stellwagen Group, an Acasta Enterprises Inc. backed Irish company that specializes in raising capital for the aviation, shipping, and defense industries. Total transaction value is estimated to be $35 million.

Other (Closed)

eStruxture Data Centers has Acquired Kolotek

eStruxture Data Centers, a CDPQ and Fengate Capital Management Ltd. backed Canadian web hosting company, has acquired Kolotek, a Canadian data center company. The target was a subsidiary of Gaz Métro Plus. 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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