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Canadian Market Recap: Week Ended September 15

  • Posted By: Karen Fisman, Joseph Shupac, Anwar Khan, JT Paliwal, Clear Li and Peter Yuan

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  • Comments: 1

 

Market Update

Fifty-Eight Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 5.5% higher than the comparable period in 2016. The Canadian dollar depreciated by 0.44 cents, ending the week at 82 cents relative to the U.S. dollar. The TSX was outperformed by the S&P 500 by 0.8% in U.S. dollar terms. WTI Crude oil rose by 4.6%, ending the week at $50.81 per barrel.

 

Valitas Insights: The Night Moves: On Labour Costs, Energy Prices, and Automation in Ontario

Economists have long tried to identify “goldilocks wages”: ideal compromises in the tradeoff between higher minimum wages and higher rates of unemployment. This is, of course, far more than a theoretical pursuit. With an election coming up in Ontario next year, it represents a significant issue that is likely to spill over from economics into politics. The province plans on raising its minimum wage from $11.40 today to $14 in 2018 and $15 in 2019. Inevitably, this plan gives rise to the question of whether, as a result, more jobs will be outsourced or automated if employers decide they cannot afford to pay the higher wages. 

So, how susceptible is Ontario to outsourcing or automation? And which of Ontario’s businesses are most likely to benefit from this potential push to automate?

Read our full article to learn more from guest economics writer, Joseph Shupac.

 

Canadian M&A Transactions[i]

Energy (Announced)

Global Energy Ventures to Acquire Sea NG

Global Energy Ventures Ltd. (ASX: GEV), a Australian company that engages in the exploration, development, and production of oil and gas properties, has agreed to acquire Sea NG Corporation, a Lex Capital Management backed Canadian company that engages in the transportation of marine compressed natural gas. Total transaction value is estimated to be $9.8 million, implying a 14.5x revenue multiple.

Energy (Closed)

Continental Energy has Acquired Continental Hilir Indonesia

Continental Energy Corporation (OTCPK: CPPX.F), a Canadian company that develops conventional and alternative energy projects in Indonesia, has acquired Continental Hilir Indonesia Pte. Ltd., a Singapore based company that provides oil refining services. Total transaction value is estimated to be $680 thousand.

Insignia Energy Acquired

Insignia Energy Ltd, a Canadian company that engages in the acquisition, exploration, development, and production of crude oil and natural gas in Western Canada has been acquired. No transaction terms were released.

Materials (Announced)

Coeur Mining to Acquire JDS Silver

Coeur Mining, Inc. (NYSE: CDE), a U.S. based owner and operator of silver and gold properties, has agreed to acquire JDS Silver Inc., a Denham Capital Management backed Canadian company that focuses on the development of silver and base metals assets in Northern British Columbia and Yukon Territory. Total transaction value is estimated to be $305 million.

Materials (Closed)

Group Eleven Resources has Acquired TILZ Minerals

Group Eleven Resources Corp., a Canadian company that owns base metal license holdings in Ireland, has acquired TILZ Minerals Limited, an Irish company that engages in the exploration and development of zinc ores. Total transaction value is estimated to be $2.1 million.

Industrials (Announced)

Ontario Teachers' Pension Plan Board; The ATP Group to Acquire Kastrup Airports Parent ApS

Ontario Teachers' Pension Plan Board, a Canadian privately-owned pension fund and The ATP Group, a Danish privately owned asset management holding company, have agreed to acquire Kastrup Airports Parent ApS, a Macquarie Infrastructure and Real Assets backed Danish company which provides airport operation and management services. Total transaction value is estimated to be $1.9 billion.

Dimora Brands to Acquire Du Verre Hardware Company

Dimora Brands, Inc., a GMB Mezzanine Capital and The Jordan Company backed U.S. based company that designs, distributes, and manufactures hardware for kitchen and bath industries, has agreed to acquire Du Verre Hardware Company, a Canadian company that designs and manufactures cabinet hardware for kitchens, baths, furniture, and interiors. No transaction terms were released.

Industrials (Closed)

McElhanney Land Surveys has Acquired SarPoint Engineering

McElhanney Land Surveys Ltd., a Canadian company that provides land surveying and mapping services, has acquired SarPoint Engineering Ltd., a Canadian company that provides land surveying, environmental consulting, and laser scanning services. No transaction terms were released.

Colliers International Group has Acquired NixAnderson Pty

Colliers International Group Inc. (TSX:CIGI), a Canadian company that provides commercial real estate services to corporations, financial institutions, governments, and individuals worldwide, has acquired NixAnderson Pty Ltd, a Australian company that offers project management and planning services. No transaction terms were released.

Consumer Staples (Announced)

Andrew Peller to Acquire Tinhorn Creek Vineyards

Andrew Peller Limited (TSX:ADW.A), a Canadian company that produces and markets wine and wine related products, has agreed to acquire Tinhorn Creek Vineyards Ltd., a Canadian company that produces red and white wines. No transaction terms were released.

MYM Nutraceuticals to Acquire Mary Jane's Touch

MYM Nutraceuticals Inc. (DB:0MY), a Canadian company that focuses on the production and distribution of medical marijuana, has agreed to acquire Mary Jane's Touch, a Canadian company that manufactures and distributes cannabidiol (CBD) based cosmetic products. No transaction terms were released.

EVI Global Group Developments to Acquire Cannaviri Laboratories

EVI Global Group Developments Corp. (CNSX:EVI), a Canadian company that engages in the acquisition, exploration, and development of mineral properties, has agreed to acquire Cannaviri Laboratories Ltd., a U.S. based developer of natural hemp based CBD products. Total transaction value is estimated to be $600 thousand.

Consumer Staples (Closed)

Dane Creek Capital has acquired Mountain Dog Enterprises

Dane Creek Capital, a Canadian private equity firm, has acquired Mountain Dog Enterprises Inc., a Canadian manufacturer of pet foods. No transaction terms were released.

Ardo has Acquired VLM Foods

Ardo NV, a Belgian company that is engaged in the production, packing, distribution, and sale of food products for retail, industrial, and foodservice markets around the world, has acquired VLM Foods Inc., a Canadian company that processes and distributes frozen food products. No transaction terms were released.

Skidmore Group; SouthPac Partners has Acquired Cinnaroll Bakeries

Skidmore Group, a Canadian principal investment firm and SouthPac Partners, a Canadian private equity firm, has acquired Cinnaroll Bakeries Limited, a Canadian bakery and maker of gourmet cinnamon rolls. No transaction terms were released.

Financials (Announced)

CI Financial Corp to Acquire BBS Securities

CI Financial Corp (TSX:CIX), a Canadian publicly owned asset management holding company, has agreed to acquire BBS Securities Inc., a Canadian company that provides investment brokerage and trading services in Canada. No transaction terms were released.

Cannatest Photonics to Acquire Snow Eagle Resources

Cannatest Photonics Ltd., a Canadian company that commercializes spectroscopy-based technology in the cannabis and hemp industries, has agreed to acquire Snow Eagle Resources Ltd., a Canadian company that does not have significant operations. No transaction terms were released.

Financials (Closed)

HUB International has Acquired Delisle Agencies

HUB International Limited, an AlpInvest Partners and Hellman & Friedman backed U.S. based company that provides insurance brokerage services, has acquired Delisle Agencies Ltd., a Canadian company that offers insurance brokerage services. No transaction terms were released.

Dynacare-Gamma Laboratory Partnership has Acquired Hooper-Holmes Canada

Dynacare-Gamma Laboratory Partnership, a Canadian company that provides laboratory and health services, has acquired Hooper-Holmes Canada Limited, a company that provides risk assessment services for the life and health insurance industry. No transaction terms were released.

Information Technology (Announced)

EXFO to Acquire Yenista Optics

EXFO Inc (TSX:EXF), a Canadian company that provides service assurance and analytics products and services, has agreed to acquire Yenista Optics S.A.S., a French company that designs and manufactures fiber optic test and measurement equipment for scientific and research markets. No transaction terms were released.

Information Technology (Closed)

Lexington Partners; NB Alternatives Advisers; Vance Street Capital has Acquired RST Instruments

A consortium of U.S. based private equity firms including Lexington Partners, NB Alternatives Advisers and Vance Street Capital has acquired RST Instruments Ltd, a Canadian company that designs, produces, and distributes geotechnical instrumentation products. No transaction terms were released.

Vision Critical Communications has Acquired Pressly

Vision Critical Communications Inc., a  Difference Capital Financial,  TELUS Ventures,  W Capital Partners, Kensington Capital Partners, Wellington Financial, Bridgescale Partners and Georgian Partners backed Canadian company that provides a cloud-based customer intelligence platform, has acquired Pressly Inc., a Canadian company that provides services to  centralize, distribute, and optimize various content communication channels. No transaction terms were released.

Magneti Marelli has Acquired LeddarTech

Magneti Marelli, an Italian designer and producer of hi-tech systems and components for the automotive sector, has acquired LeddarTech Inc., a Desjardins Business Capital régional et coopératif, I-Source Gestion, BDC Venture Capital and Fonds de solidarité FTQ backed  Canadian company that develops and supplies advanced detection and ranging systems for autonomous and unmanned vehicles. No transaction terms were released.

Spiria Digital has Acquired Spiria Boston

Spiria Digital Inc., a Canadian company that develops digital software solutions, has acquired Spiria Boston LLC, a U.S. based developer of mobile applications and IoT software solutions. No transaction terms were released.

INVIVO Communications has Acquired Spongelab Interactive

INVIVO Communications Inc., a Canadian company that provides digital marketing and communications services for the healthcare and pharmaceutical industry, has acquired Spongelab Interactive Inc., a Canadian company that provides consulting, design, and production services for learning communities. No transaction terms were released.

Enghouse Systems has Acquired Survox

Enghouse Systems Limited (TSX:ENGH), a Canadian company that develops and sells enterprise oriented applications software solutions worldwide, has acquired Survox, Inc., a U.S. based company that develops multi-mode and voice-based survey automation software and solutions. No transaction terms were released.

Real Estate (Closed)

Western Wealth Capital has Acquired Marble Creek

Western Wealth Capital, a Canadian company that invests and owns real estate properties, has acquired Marble Creek LLC, a U.S. based company that operates an apartment community. Total transaction value is estimated to be $20.7 million.

Other (Announced)

Manitok Energy to Acquire Corinthian Oil

Manitok Energy Inc. (TSXV:MEI), a Canadian company that engages in the exploration, development, and production of petroleum and natural gas reserves in Western Canada, has agreed to acquire Corinthian Oil Corp., a ARC Financial and Annapolis Capital Limited backed  Canadian company that engages in oil and gas exploration. Total transaction value is estimated to be $3.0 million.

Pacific Reach Properties to Acquire Hines VAF UB Plaza

Pacific Reach Properties Ltd., a Canadian real estate investment firm, has agreed to acquire Hines VAF UB Plaza, L.P., a KBS Real Estate Investment Trust II backed U.S. based affiliate of Hines Interests Limited Partnership. Total transaction value is estimated to be $340 million, implying a 13.57x revenue multiple.

Other (Closed)

On4 Communications has Acquired Cogosense Technology

On4 Communications, Inc. (OTCPK:ONCI), a U.S. based developer and provider of wireless communications services, has acquired Cogosense Technology Inc., a Canadian company that develops software solutions for smartphones and tablets. No transaction terms were released.

Doxim Solutions has Acquired Intelligent Document Solutions

Doxim Solutions ULC, a Strattam Capital backed Canadian company that designs and develops customer engagement solutions for the financial services sector, has acquired Intelligent Document Solutions, Inc., a U.S. based company that provides e-document solutions. 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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