Blog

Canadian Market Recap: Week Ended June 30

  • Posted By: Paris Aden, Louis Goldberg, Miranda Li, Michael Mazza, Clear Li, Christopher Abt, JT Paliwal

  • |
  • Comments: 1

Market Update

Forty-three Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 6.1% higher than the comparable period in 2016. The Canadian dollar appreciated by 1.55 cents, ending the week at 77 cents. The TSX outperformed the S&P 500 by 1.7% in U.S. dollar terms. WTI Crude oil rose by 7.0%, ending the week at $46.29 per barrel.

According to The Lead Left, in Q2 2017, average leverage on large corporate, broadly syndicated, LBO deals was 6.39x Debt to EBITDA. This was the highest leverage levels seen since Q4  2014.

Valitas Insights: Private Equity and Portfolio Company Management

Private equity has remained one of the most reliable asset classes amid recent challenges in the market. However, PE investors still need to be vigilant in order to retain their competitive position going forward. The management team of the portfolio company is crucial to a successful partnership. A recent Mergermarket report surveying 25 middle market PE firms and 25 company executives across North America revealed several key insights on this issue, and we thought it is worthwhile to share some of their findings.

Read our full article here to find out more.

 

Canadian M&A Transactions[i]

Energy (Closed)

Total Energy Services has Acquired Savanna Energy Services

Total Energy Services Inc. (TSX:TOT), a global provider of oil and gas services, has completed a hostile takeover of Savanna Energy Services Corp., an Invesco Canada backed oilfield services company. Total transaction value is estimated to be $154 million, implying a 16.6x EBITDA multiple and a 1.8x revenue multiple.

Materials (Announced)

Lithium X Energy to Acquire Potasio y Litio de Argentina

Lithium X Energy Corp. (TSXV:LIX), a Canadian lithium exploration company, has agreed to acquire Aberdeen Inc.’s remaining 50% interest in Potasio y Litio de Argentina SA, a lithium-potash project operated as a joint venture between the two companies. Total transaction value is estimated to be $21.9 million.

TricorBraun to Acquire Salbro Bottle

TricorBraun, Inc., a U.S.-based packaging company, has agreed to acquire Salbro Bottle Inc., a Sentry Investments and Crosswinds Holdings backed Canadian packaging company. No transaction terms were released.

Industrials (Closed)

RBC Global Asset Management has Acquired Wiser Investments

RBC Global Asset Management Inc. has acquired Wiser Investments, a Canadian provider of risk assessment services. No transaction terms were released.

Deere & Company has Acquired Mazzotti

Deere & Company (NYSE:DE), a global manufacturer of equipment and heavy machinery, has acquired Mazzotti S.r.l., an Italian manufacturer of self-propelled crop sprayers with operations in Canada. No transaction terms were released.

Burckhardt Compression has Acquired CSM Compressor

Burckhardt Compression Holding AG (SWX:BCHN), a Swiss manufacturer of reciprocating compressors, has acquired CSM Compressor Inc., a Canadian provider of maintenance and repair to natural gas compressors. No transaction terms were released.

Consumer Discretionary (Announced)

Millennial Esports to Acquire IDEAS+CARS

Millennial Esports Corp. (TSXV:GAME), a Canadian gaming and digital media company, has agreed to acquire IDEAS+CARS Ltd., a U.K.-based advertising company. Total transaction value is estimated to be $5.94 million.

Consumer Discretionary (Closed)

InnVest Hotels has Acquired The Adelaide Hotel Toronto

InnVest Hotels LP, an InnVest Real Estate Investment Trust backed Canadian company with a vast hotel investment portfolio, has acquired The Adelaide Hotel Toronto, a luxury hotel and residential tower. The Adelaide Hotel Toronto was a subsidiary of JCF Capital ULC, a joint venture between Juniper Capital Partners and Cowie Capital Partners. No transaction terms were released.

Lululemon Athletica has Acquired 7mesh

Lululemon Athletica Inc. (NasdaqGS:LULU), a Canadian athletic apparel retailer, has acquired 7mesh Inc., a Canadian cycling apparel company. No transaction terms were released.

Consumer Staples (Closed)

Wynnchurch Capital has Acquired Stampede Meat

Wynnchurch Capital, LLC, a U.S.-based private equity firm, has acquired Stampede Meat, Inc., a Fairmont Capital, Bain Capital Credit and PNC Mezzanine Capital backed U.S.-based producer of meat products. No transaction terms were released.

Richardson International has Acquired European Oat Millers

Richardson International Limited, a Canadian agricultural and food processing company, has acquired European Oat Millers Ltd, a U.K.-based producer of oat and cereal products. No transaction terms were released.

Healthcare (Announced)

Hadley Mining to Acquire SpeakEasy

Hadley Mining Inc. (CNSX:HM), a Canadian mineral exploration company, has agreed to acquire SpeakEasy, a Canadian producer of medical cannabis. No transaction terms were released.

Healthcare (Closed)

Altaris Capital Partners has Acquired Chemical Computing Group

Altaris Capital Partners, LLC, a U.S.-based private equity firm, has acquired Chemical Computing Group, Inc., a Novacap backed Canadian software company providing drug discovery applications for the medical industry. No transaction terms were released.

Information Technology (Announced)

Shutterstock to Acquire FlashStock Technology

Shutterstock, Inc. (NYSE:SSTK), a global provider of digital content, has agreed to acquire FlashStock Technology Corp., a Canadian creator of visual content platforms for marketers and advertisers. Total transaction value is estimated to be $65.9 million.

Nelson Education to Acquire Edusight

Nelson Education Ltd., a Canadian educational publishing company, has agreed to acquire Edusight, Inc., a YC/Imagine K12 backed Canadian provider of educational tools for teachers. No transaction terms were released.

FTI Foodtech International to Acquire iDroid USA

FTI Foodtech International Inc. (TSXV:FTI), a Canadian company focused on the surplus goods industry, has agreed to acquire iDroid USA, Inc., a producer of mobile phones. No transaction terms were released.

Information Technology (Closed)

Sonatype has Acquired Vör Security

Sonatype, Inc., a Accel Capital Partners, Bay Partners, Goldman Sachs Group, Merchant Banking Division, Hummer Winblad Venture Partners, Morgenthaler and New Enterprise Associates backed U.S.-based provider of software supply chain automation solutions, has acquired Vör Security Ltd., a Canadian company with an online database giving an index of software vulnerabilities. No transaction terms were released.

Accenture has Acquired Intrepid Pursuits

Accenture plc (NYSE:ACN), a worldwide provider of consulting, technology, and outsourcing services, has acquired Intrepid Pursuits, LLC, a U.S.-based mobile app developer with operations in Canada. No transaction terms were released.

N. Harris Computer Corporation has Acquired Magor

N. Harris Computer Corporation, a Canadian developer of software solutions for several industries across North America, has acquired Magor Corporation, a Canadian developer of a visual collaboration software platform. Magor Corporation was a subsidiary of Wesley Clover Corporation. Total transaction value is estimated to be $2.75 million, implying a 1.6x revenue multiple.

Other (Announced)

Visionstate to Acquire Chatbot Incubator

Visionstate Corp. (TSXV:VIS), a Canadian company that develops and markets online social casino games, has agreed to acquire Chatbot Incubator, a Canadian company focused on applications for artificial intelligence. Total transaction value is estimated to be $260 thousand.

Gore Mutual Insurance Company to Acquire Howard Noble Insurance

Gore Mutual Insurance Company, a Canadian provider of personal and commercial insurance products, has agreed to acquire Howard Noble Insurance Limited, an insurance broker operating in Ontario. No transaction terms were released.

Other (Closed)

Petcube has Acquired PetBot

Petcube, Inc., a Y Combinator Management, SOSV, Almaz Capital Partners, AVentures Capital and Hax Accelerator backed U.S.-based developer of an interactive Wi-Fi pet camera that lets pet owners interact with their pets remotely through a smartphone application, has acquired PetBot Inc., a Canadian manufacturer of a pet-monitoring device. No transaction terms were released.

Burr, Pilger and Mayer has Acquired Info@Risk

Burr, Pilger and Mayer LLP, a U.S.-based provider of accounting and consulting services, has acquired Info@Risk, Inc., a U.S.-based provider of IT risk assessment. No transaction terms were released.

3esi-Enersight has Acquired Energy Navigator

3esi-Enersight, a Canadian developer of software solutions for upstream oil and gas companies, has acquired Energy Navigator Inc., a Canadian provider software solutions to the oil and gas industry. No transaction terms were released.

Altima has Acquired Konversion

Altima S.A.S., a French provider of digital commerce services, has acquired Konversion, a Montreal-based web marketing agency. No transaction terms were released.

WSP Global has Acquired Wirthensohn

WSP Global Inc. (TSX:WSP), a Canadian engineering consulting firm with operations around the world, has acquired Wirthensohn, a Swiss engineering consulting firm. No transaction terms were released.

Jacuzzi Brands has Acquired Hydropool

Jacuzzi Brands LLC, an Ares Management, Clearlake Capital Group and Apollo Global Management backed U.S.-based hot tub and spa producer, has acquired Hydropool Industries, a leading global spa and hot tub retailer based out of Ontario. No transaction terms were released.

 

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

Add A Comment

Confidentiality and Communications Protocols

Continue Reading

Sign Up to Receive Valitas Publications

Subscribe