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Canadian Market Recap: Week Ended June 9

  • Posted By: Karen Fisman, Brianna Aden, JT Paliwal, Louis Goldberg, Yingxi Liao, and Paris Aden

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Market Update

Fifty-two Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 5.9% higher than the comparable period in 2016. The Canadian dollar depreciated by 0.43 cents, ending the week at 74 cents. The TSX outperformed the S&P 500 by 1.1% in U.S. dollar terms. WTI Crude oil fell by 3.8%, ending the week at $46.07 per barrel.

The new issue environment for the U.S. middle market was relatively unchanged over the past week. As higher yields remain elusive, investing in private debt is becoming an attractive investment class for funds of all sizes. According to a The Lead Left article, 70% of sovereign wealth funds have a preference for investing in private mezzanine debt.

 

Valitas Insights:  What do Sellers Want?

It’s a competitive market out there for buyers. 

We’ve talked often about the high levels of capital available for a shrinking pool of quality targets. And of course, there are those sky-high valuations.  In this challenging market, it becomes more important than ever to understand seller preferences and experiences.  A recent Mergermarkets survey provides insight into sell-side strategies and views, and we thought it worthwhile to share some of their findings. Read our full article to learn more.

 

Canadian M&A Transactions[i]

Energy (Announced)

Royal Dutch Shell to Acquire Chevron Trinidad & Tobago Resources Srl

Royal Dutch Shell Plc (ENXTAM:RDSA), a Dutch oil and natural gas company with international operations, has agreed to acquire Chevron Trinidad & Tobago Resources Srl, an oil exploration and production company.  Chevron Trinidad & Tobago Resources Srl is a subsidiary of Chevron Corporation (NYSE:CVX). No transaction terms were released.

Maple Marathon Investments to Acquire CQ Energy Canada Partnership

Maple Marathon Investments Limited, a Hong Kong-based company, has agreed to acquire CQ Energy Canada Partnership, a Canadian company that provides natural gas production services. Total transaction value is estimated to be $722 million, implying a 2.16x revenue multiple.

Materials (Announced)

Miramont Resources to Acquire Puno Gold

Miramont Resources Corp., a Canadian company that acquires, explores for, and develops mineral properties in Canada, has agreed to acquire Puno Gold Corporation, a Canadian company that engages in gold exploration services. No transaction terms were released.

Savoy Ventures to Acquire Hybrid Minerals

Savoy Ventures Inc. (TSXV:SVO.H), a Canadian company that engages in the acquisition and exploration of mineral properties in Canada, has agreed to acquire Hybrid Minerals Inc., a Canadian company that acquires, develops, and explores for grade metals and specialty mineral deposits that are critical components in rechargeable batteries. Total transaction value is estimated to be $1.1 million.

Materials (Closed)

Aurora Plastics Acquires Reinier Plastic

Aurora Plastics Inc., a Wind Point Partners and Ontario Teachers' Pension Plan Board backed American company that manufactures polyvinyl chloride (PVC) compounds for various plastics applications, has acquired Reinier Plastic Inc., a Canadian manufacturer of PVC compounds and alloys. No transaction terms were released.

Industrials (Announced)

Fieldex Exploration to Acquire Idénergie

Fieldex Exploration Inc. (TSXV:FLX), a Canadian mining exploration and development company, has agreed to acquire Idénergie Inc., a Canadian company that develops residential energy management platforms for hydro-electricity generation. No transaction terms were released.

Finore Mining to Acquire Micron Waste Technologies

Finore Mining Inc. (OTCPK:FNRE.F), a Canadian mineral exploration company, has agreed to acquire Micron Waste Technologies Inc., a Canadian company that develops and distributes on-site treatment systems used to transform organic waste into clean water. No transaction terms were released.

Peoplesource Staffing Solutions to Acquire People Store Staffing Solutions

Peoplesource Staffing Solutions Inc., a Canadian company that provides human resource and employment services, has agreed to acquire People Store Staffing Solutions Inc., a Canadian company that provides employment services for industries including manufacturing, engineering and business. No transaction terms were released.

Industrials (Closed)

Oakcreek Golf & Turf has Acquired Simpson Norton

Oakcreek Golf & Turf Inc., a Canadian distributor of golf and turf care equipment, has acquired Simpson Norton Corporation, a U.S.-based distributor of commercial turf and irrigation equipment. Simpson Norton Corporation was a subsidiary of The Toro Company. No transaction terms were released.

Via Route Car and Truck Rentals has Acquired bleu Pelican

Via Route Inc., a Canadian company that provides car and truck rental services, has acquired bleu Pelican Inc., a Canadian company that provides vehicle rental services in Quebec. No transaction terms were released.

CEP Forensic has Acquired LRI Engineering

CEP Forensic Inc., a Canadian company that provides forensic engineering and investigation services, has acquired LRI Engineering Inc., a Canadian company that offers engineering consulting services. No transaction terms were released.

GFL Environmental has Acquired Johnson Waste Management

GFL Environmental Inc., a Hawthorn Equity Partners. and HPS Investment Partners backed Canadian company that provides waste management services, has acquired Johnson Waste Management Ltd., a Canadian company that provides waste collection and disposal services. No transaction terms were released.

Carmeuse Lime has Acquired STT Enviro

Carmeuse Lime Limited, a Canadian producer of lime, high calcium limestone and dolomitic stone, has acquired STT Enviro Corp. (TSXV:STT), a Kompass Kapital Management backed Canadian company that engineers and supplies a range of industrial and environmental products and services globally. Total transaction value is estimated to be $15.4 million, implying a 0.51x revenue multiple.

Consumer Discretionary (Announced)

SocialPlay USA to Acquire Friendship Socks

SocialPlay USA Inc. (OTCPK:SPLY), a U.S.-based company that provides marketing, monetization, and support services for gaming and mobile application systems, has agreed to acquire Friendship Socks Inc., a Canadian company that manufactures and markets designer socks on an e-commerce platform. No transaction terms were released.

Park Lawn to Acquire Saber Management

Park Lawn Corporation (TSX:PLC), a Canadian company that provides goods and services for the disposition and memorialization of remains, has agreed to acquire Saber Management L.L.C., a U.S.-based company that operates funeral homes and cemeteries in Kentucky, Illinois, and Missouri. Total transaction value is estimated to be $78.9 million, implying a 8.5x EBITDA multiple.

Consumer Discretionary (Closed)

VisionPros has Acquired Lowest Price Contacts

VisionPros LLC, a Canadian company that sells contact lenses, eyeglasses, and sun glasses online, has acquired Lowest Price Contacts, a Canadian company that also sells eyewear products online. No transaction terms were released.

Acosta has Acquired Summit Marketing Canada

Acosta Inc., a PineBridge Investments, Carlyle Group and GIC Pte backed U.S.-based company that provides sales and marketing services to retailers and consumer packaged goods companies, has acquired Summit Marketing Canada Ltd., a Canadian company that provides sales and marketing services to the food industry. No transaction terms were released.

Eastway Fire and Rescue Vehicles has Acquired Arnprior Fire Trucks

Eastway Fire and Rescue Vehicles, a Canadian company that designs and manufactures emergency vehicles, has acquired Arnprior Fire Trucks Corporation, a Canadian manufacturer of fire trucks and other emergency vehicles. No transaction terms were released.

Consumer Staples (Announced)

Carlyle Group to Acquire Irca S.p.A.

The Carlyle Group LP (NasdaqGS:CG), a U.S.-based investment firm with operations in Canada, has agreed to acquire Irca S.p.A., an Ardian backed Italian company that sells food products used for bakery and pastry production. No transaction terms were released.

Healthcare (Announced)

Carlyle Group and Pacific Equity Partners to Acquire iNova Pharmaceuticals

The Carlyle Group LP, a U.S.-based investment firm with operations in Canada, and Pacific Equity Partners, an Australian private equity firm, have agreed to jointly acquire iNova Pharmaceuticals Pty Limited, an Australian company that develops and sells over-the-counter and prescription medicines internationally. Total transaction value is estimated to be $1.3 billion

Platinex to Acquire Cannabee Products

Platinex Inc. (TSXV:PTX), a Canadian mineral exploration and development company, has agreed to acquire Cannabee Products, Inc., an American developer of cannabinoid-based products. No transaction terms were released.

Capha Pharmaceuticals to Acquire AgriForest Bio-Technologies

Capha Pharmaceuticals Inc. (OTCPK:FPSU.F), a Canadian provider of pharmaceutical products focused on the medical marijuana industry, has agreed to acquire AgriForest Bio-Technologies Ltd., a Canadian bio-technology company that produces trees, shrubs, and other plants using tissue culture micro propagation technology. Total transaction value is estimated to be $2.4 million.

Sienna Senior Living to Acquire Retirement Suites of Kawartha Lakes

Sienna Senior Living Inc. (TSX:SIA), a Canadian company that provides senior housing and long-term care services, has agreed to acquire Retirement Suites of Kawartha Lakes, a Canadian company that operates retirement residences and independent and assisted living suites. Total transaction value is estimated to be $21.0 million.

Financials (Announced)

CBRE Global Value Investors to Acquire Caledon Capital Management

CBRE Global Value Investors LLC, a U.S.-based real estate investment company, has agreed to acquire Caledon Capital Management Inc., a Canadian investment and financial advisory firm. No transaction terms were released.

ECN Capital to Acquire Service Finance Company

ECN Capital Corp. (TSX:ECN), a Canadian financial services company, has agreed to acquire Service Finance Company LLC, a Flexpoint Ford backed U.S.-based company that provides financing solutions for home improvement dealers and healthcare professionals. Total transaction value is estimated to be $410 million.

Financials (Closed)

HanMac Capital has Acquired AXYZ International

HanMac Capital Corp., a Canadian investment firm, has acquired AXYZ International Inc., a Canadian manufacturer of computer numerical control (CNC) router systems and CNC knife systems. No transaction terms were released.

Information Technology (Closed)

Convergint Technologies has Acquired Integrated Security Systems

Convergint Techologies, a U.S.-based provider of integrated building systems solutions with operations in Canada, has acquired Integrated Security Systems, U.S.-based company that provides security, fire and life safety solutions. No transaction terms were released.

Symantec has Acquired Watchful Software

Symantec Corporation (NasdaqGS:SYMC), a U.S-based provider of cyber security solutions with operations in Canada, has acquired Watchful Software, a U.S.-based company that provides information security solutions. No transaction terms were released.

Longview Solutions has Acquired Tidemark Systems

Longview Solutions Inc., a Canadian company that develops corporate performance management, tax and intelligence solutions, has acquired Tidemark Systems, Inc., a U.S.-based company that provides corporate performance management software solutions for financial planning and analysis. No transaction terms were released.

Aptean has Acquired FDM Software

Aptean Inc., a Wynnefield Capital and Vista Equity Partners backed American company that provides enterprise software solutions focused on operational efficiency, has acquired FDM Software Ltd., a Canadian company that offers enterprise software solutions for fire and emergency medical service departments. No transaction terms were released.

GroupBy has Acquired Edgecase

GroupBy Inc., a BEST Funds backed Canadian company that provides e-commerce software solutions, has acquired Edgecase, a U.S.-based company that virtually replicates the physical shopping experience through enterprise software. No transaction terms were released.

Other (Closed)

NIBE Climate Solutions has Acquired Tempeff

NIBE Climate Solutions, a Swedish company that provides climate control solutions for residential and commercial properties, has acquired Tempeff North America Ltd., a Canada-based manufacturer of heat recovery and ventilation products. No transaction terms were released.

The Co-operators Group has Acquired Assurance Auclair

The Co-operators Group Limited, a Canadian insurance and financial services co-operative company, has acquired Assurance Auclair, a Canadian company that provides insurance and investment services. No transaction terms were released.

Array Canada has Acquired Summit Manufacturing

Array Canada Inc., a Canadian company that provides in-store marketing services for retailers and brand manufacturers, has acquired Summit Manufacturing LLC, a U.S.-based manufacturer of point of sale merchandising, retail displays and fixtures. No transaction terms were released.


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

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