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Canadian Market Recap: Week Ended March 16th

  • Posted By: Andrew Schmidt, Chris Tuszynski, Joseph Scarfone, Hamzah Rizvi, and Paris Aden

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  • Comments: 1

 

Market Update

33 Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 13.4% lower than the comparable period in 2017. The Canadian dollar depreciated by 1.61 cents, ending the week at 76 cents. The TSX underperformed the S&P 500 by 0.3% in U.S. dollar terms. WTI Crude oil rose by 0.9%, ending the week at $62.25 per barrel.

According to The Lead Left, the average spreads on first-lien institutional term loans have reached their lowest level since Q4 2007, with the drop happening across the board. On average, the spread for large corporate borrowers is 320 basis points so far in Q1 2018 which is 10 basis point lower than Q4 2017 levels and 8 basis points higher than Q4 2007’s 312 basis points. Both higher-rated BB-issuers and lower-rated B-issuers have seen spreads tightening.

 

Canadian M&A Transactions[i]

Materials (Announced)

Fortress Global Enterprises to Acquire S2G Biochemicals

Fortress Global Enterprises Inc. (TSX: FGE), a Canadian company that manufactures dissolving pulp and paper products, has agreed to acquire S2G Biochemicals Inc., a Canadian company which commercializes bio-glycol plants for industrial use. Total transaction value is estimated to be $2.40 million.

Materials (Closed)

Premier Tech has Acquired Swabo Machinebouw & Toelevering

Premier Tech Ltd., a Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ backed Canadian company that manufactures horticulture and agriculture products, has acquired Swabo Machinebouw & Toelevering, a Dutch steel parts manufacturing company. No transaction terms were released.

Information Technology (Announced)

Alithya Group to Acquire Edgewater Technology

Alithya Group Inc., a Desjardins Business Capital, TELUS Ventures and Investissement Québec backed Canadian company that provides information technology and management consulting services, has agreed to acquire Edgewater Technology, Inc. (Nasdaq: EDGW), an American company that provides business and technology services in the United States, Canada, and internationally. No transaction terms were released.

Other (Announced)

Imports Dragon to Acquire Assets of Oyotoyo

Imports Dragon Ltd, a Canadian toy manufacturing company, has agreed to acquire the assets of Oyotoyo Inc., a U.S. based toy manufacturing company in Chapter 11 bankruptcy. Total transaction value is estimated to be $646 thousand.

 


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

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