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Canadian Market Recap: Week Ended November 17

  • Posted By: Matthew Bogoroch, Ty Wilson, Peter Yuan, Clear Li

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  • Comments: 1

Market Update

Sixty-four Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 5.7% higher than the comparable period in 2016. The Canadian dollar depreciated by 0.68 cents, ending the week at 78 cents. The TSX underperformed the S&P 500 by 1.0% in U.S. dollar terms. WTI Crude oil fell by 0.5%, ending the week at $56.71 per barrel.

According to The Lead Left, primary yields on first-lien institutional loans have been relatively flat so far in Q4 2017. Averaging a yield of 5.11% on a three-year term to repayment, Q4 is just 5bp below Q3 2017 levels. This is partly due to an increase in the 3-month Libor.


Valitas Insights: Blockchain & M&A
Blockchain Part II: Due Diligence & Compliance, Cross-Border Payments, and Confidentiality

Last month, we introduced Part I of the three-part Blockchain and M&A series. In this week’s Part II of the series, we will cover possible improvements in due diligence & compliance, cross-border payment systems, and confidentiality.

To understand the limitless potential of blockchain applications, it helps to imagine a world where all transactions occur on a blockchain. For this to be possible on a mass scale, local currencies would likely need to be ‘digital’.

Read our full article here.

And on other topics...

Selling your business? In this Divestopedia piece, Paris Aden gives his insight as to what buyers look for in target companies.

What did October's M&A landscape look like? Check out this monthly infographic over at Firmex.


Canadian M&A Transactions[i]


Materials (Announced)

Atlas Engineered Products to Acquire Selkirk Truss 2010

Atlas Engineered Products Ltd. (TSXV:AEP), a Canadian company that designs, manufactures, and distributes engineered wood products in North America, has agreed to acquire Selkirk Truss 2010 Ltd., a Canadian company that manufacturers engineered wood products and roof truss systems for residential and commercial buildings. Total transaction value is estimated to be $750 thousand.

XPEL Technologies to Acquire Protex Canada

XPEL Technologies Corp. (OTCPK:XPLT), a U.S.-based company that manufactures and distributes after-market automotive parts globally, has agreed to acquire Protex Canada Inc., a Canadian company that manufactures automotive paint protection films and provides installation services. No transaction terms were released.

Argonaut Gold to Acquire San Anton Resource

Argonaut Gold Inc. (TSX:AR), a U.S.-based mining company that engages in the exploration, development, and production of gold and silver in North America, has agreed to acquire San Anton Resource Corporation Inc, a Canadian company that explores and develops mineral resource properties in Mexico. Total transaction value is estimated to be $19.1 million.

Materials (Closed)

Tricorbraun Holdings has Acquired Taipak Enterprises

Tricorbraun Holdings Inc., a U.S.-based company that distributes rigid packaging solutions, has acquired Taipak Enterprises Ltd., a Canadian company that designs and manufactures packaging solutions and products. No transaction terms were released.

Samuel, Son & Co has Acquired Main Steel

Samuel, Son & Co Limited, a Canadian company that engages in the processing and distribution of metals in North America, has acquired Main Steel LLC, a U.S.-based company that sells stainless steel, aluminum, nickel alloy, and carbon steel products to OEMs and fabricators in North America. No transaction terms were released.

Industrials (Closed)

Ausenco Engineering Canada has Acquired Hemmera Envirochem

Ausenco Engineering Canada Inc., a Canadian engineering and construction management company, has acquired Hemmera Envirochem Inc., a Canadian company that provides environmental consulting services. No transaction terms were released.

CEDA International has Acquired Joe Loomis Trucking

CEDA International Corporation, a Canadian company that provides industrial maintenance, turnaround, and construction services in North America, has acquired Joe Loomis Trucking Ltd., a Canadian company that provides trucking services. No transaction terms were released.

Walters has Acquired Dave Steel

Walters, Inc., a Canadian company that provides engineering, steel fabrication, and erection services primarily in North America, has acquired Dave Steel Company, Inc., a U.S.-based company that specializes in steel construction services for industrial, power, and commercial projects. No transaction terms were released.

Keynote Group has Acquired Harrison O'Sullivan Consulting

Keynote Group, a Canadian company that through its subsidiaries, provides recruitment services, has acquired Harrison O'Sullivan Consulting Inc., a Canadian human resources consulting company. No transaction terms were released.

Exchange Income has Acquired Quest Window Systems

Exchange Income Corporation (TSX:EIF), a Canadian company that engages in aerospace and aviation services and equipment, and manufacturing worldwide, has acquired Quest Window Systems Inc., a Canadian company that manufactures advanced unitized window wall systems used in high-rise multi-family residential projects. Total transaction value is estimated to be $100 million, implying a 6.7x EBITDA multiple.

Tervita has Acquired 3K Oil Services

Tervita Corporation, a Goldman Sachs Group, Western America Capital Group, and BC Investment Management Corporation backed Canadian company that provides environmental solutions to natural resource and industrial customers across North America, has acquired 3K Oil Services Ltd., a Canadian company that provides disposal of upstream oilfield waste to heavy oil markets. No transaction terms were released.

Consumer Discretionary (Announced)

Mattamy Group to Acquire Royal Oaks Building Group

Mattamy Group Corporation, a Canadian company that builds homes in North America, has agreed to acquire Royal Oaks Building Group, LLC, a U.S.-based home building company. No transaction terms were released.

Consumer Discretionary (Closed)

Mosaic Capital has Acquired Circle 5 Tool and Mold

Mosaic Capital Corporation (TSXV:M), a Canadian private equity company, has acquired Circle 5 Tool and Mold LP, Canadian company that provides injection molded solutions to automotive and non-automotive industry. Total transaction value is estimated to be $27.0 million.

Consumer Staples (Closed)

Ontario Teachers' Pension Plan has Acquired Atlantic Aqua Farms Partnership

Ontario Teachers' Pension Plan Board, a Canadian pension fund, has acquired Atlantic Aqua Farms Partnership, an Encore Consumer Capital backed Canadian company that engages in growing and processing live mussels in North America. No transaction terms were released.

Healthcare (Announced)

Centric Health to Acquire Salus Pharmacare

Centric Health Corporation (TSX:CHH), a Canadian company that provides healthcare services to patients and customers in Canada, has agreed to acquire Salus Pharmacare Inc., a Canadian company that offers medication management services to assisted living and long-term care facilities. Total transaction value is estimated to be $4.0 million, implying a 6.8x EBITDA multiple.

PhoenixBio to Acquire KMT Hepatech

PhoenixBio (TSE: TYO), a Japanese company that provides contract study services for drug discovery and early development in Japan, has agreed to acquire KMT Hepatech Inc., a Canadian company that provides vivo research services focusing on preclinical development of Hepatitis C, Hepatitis B, and Malaria therapeutics and vaccines. Total transaction value is estimated to be $5.5 million.

Healthcare (Closed)

Imagia Cybernetics has Acquired DOG Microsystems

Imagia Cybernetics Inc., a BDC Venture Capital, Fidelity Investments Canada Limited, CorpoSana Capital Inc., Real Ventures and Hacking Health Accelerator Inc. backed Canadian company that develops and distributes medical image analysis solutions, has acquired DOG Microsystems Inc., a Canadian company that develops computer-assisted medical imaging solutions. No transaction terms were released.

Information Technology (Closed)

Calyx Bio-Ventures has Acquired Canada Blockchain Hosting

Calyx Bio-Ventures Inc. (TSXV:CYX), a Canadian company that through its subsidiary, Cannigistics Agri-Solutions Corp., provides software technology solutions to the indoor agriculture in Canada, has acquired Canada Blockchain Hosting Corp., a Canadian company that provides hosting facilities for the development of blockchain based applications. Total transaction value is estimated to be $400 thousand.

2ic Systems has Acquired American Data Technology

2ic Systems Inc., a Canadian digital consulting company that offers integrated support in branding, web development, digital marketing, and IT services, has acquired American Data Technology, Inc., a U.S.-based company that provides web hosting, cloud, and email services worldwide. No transaction terms were released.

Omnigo Software has Acquired iView Systems

Omnigo Software, a U.S.-based company that develops incident reporting and records management solutions, has acquired iView Systems Ltd., a Canadian company that develops incident and security reporting solutions. No transaction terms were released.

Utilities (Closed)

Suncor Energy has Acquired Petronor

Suncor Energy Inc. (TSX:SU), a Canadian integrated energy company, has acquired Petronor, a Canadian company that is a distributor of petroleum products. No transaction terms were released.

Other (Announced)

CHAR Technologies to Acquire The ALTECH Group

CHAR Technologies Ltd. (TSXV:YES), a Canadian technology company, has agreed to acquire The ALTECH Group, a Canadian energy and environmental consulting company. Total transaction value is estimated to be $1.1 million.

Global Remote Technologies to Acquire 1Linx Blockchain Technologies

Global Remote Technologies, Ltd. (DB:GR9), a Canadian company that together with its subsidiary, GRT Technologies Inc., provides a range of solutions to streamline and improve oil and gas operations, has agreed to acquire 1Linx Blockchain Technologies Corp, a U.S.-based company that owns and operates a blockchain authentication platform. No transaction terms were released.

Other (Closed)

Volaris Group has Acquired Hospitality 101

Volaris Group Inc., a Canadian company operating as the venture capital arm of Constellation Software Inc., has acquired Hospitality 101, Inc., a U.S.-based company that designs and develops an online catering management software. No transaction terms were released.

Wildeboer Dellelce has Acquired WD Numeric Corporate Services

Wildeboer Dellelce LLP, a Canadian company that offers legal advisory services, has acquired WD Numeric Corporate Services, a Globacor Capital Inc. backed Canadian company that offers corporate and bookkeeping services. 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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