Value Unleashed

Market Update

Fifty-Three Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 3.6% higher than the comparable period in 2016. The Canadian dollar appreciated by 0.7 cents, ending the week at 81 cents relative to the U.S. dollar. The TSX outperformed the S&P 500 by 0.4% in U.S. dollar terms. WTI Crude oil rose by 0.4%, ending the week at $48.54 per barrel.

Valitas Insights: Canadian Private Equity: The 2017 Trajectory is Upwards…

In our 2016 review of Canadian Private Equity (PE), we reported sluggish results.  But according to the latest CVCA PE report, that’s history; Canadian PE has definitively reversed its trajectory. The results are particularly interesting in the face of today’s challenging deal environment (described so often in such similar terms, it’s achieving cliché status).  We’ve written recently about how PE firms are evolving to address current challenges, and perhaps we’re starting to see the impact - although obviously, one strong quarter doesn’t constitute a trend.

To get the details, read our full article.

Canadian M&A Transactions[i]

Materials (Closed)

Ocean Partners has Acquired CBAY Minerals

Ocean Partners Holdings Limited, a U.K.-based base metals trading business that provides trading services for miners, smelters, refiners, and metal consumers around the world, has acquired CBAY Minerals Inc., a Canadian company that owns and operates Chibougamau mining area and produces gold and copper. Total transaction value is estimated to be $400 thousand.

Dalradian Resources has Acquired Minco

Dalradian Resources Inc. (TSX:DNA), a Canadian company that engages in the acquisition, exploration, and evaluation of mineral properties, has acquired Minco plc, a company that engages in the exploration and development of mineral properties in Ireland, Canada, the United Kingdom, and Mexico. It primarily explores for zinc, lead, copper, silver, manganese, and gold deposits, as well as precious and base metals. Total transaction value is estimated to be $389 million.

Industrials (Announced)

Canada Fibers to Acquire HGC Management

Canada Fibers Ltd, a Canadian company that specializes in urban mining, has agreed to acquire HGC Management Inc., a Canadian company that provides waste management and recycling services. No transaction terms were released.

Toromont Industries to Acquire Hewitt Equipment

Toromont Industries Ltd. (TSX:TIH), a Canadian company that provides specialized capital equipment in Canada, the United States, and internationally, has agreed to acquire Hewitt Equipment Limited, a Canadian company that rents and services a line of Caterpillar machines, engines, and power generation systems. Total transaction value is estimated to be $1.02 billion.

Industrials (Closed)

C.H. Robinson Worldwide has Acquired Milgram & Company

C.H. Robinson Worldwide, Inc. (NasdaqGS:CHRW), a U.S.-based third party logistics company that provides freight transportation services and logistics solutions to companies in various industries worldwide, has acquired Milgram & Company Ltd., a Canadian company that provides customs brokerage, international freight forwarding, and truck transportation services. Total transaction value is estimated to be $62.0 million, implying a 0.4x revenue multiple.

Consumer Discretionary (Closed)

ZoomerMedia has Acquired On The Bay Magazine

ZoomerMedia Limited (TSXV:ZUM), a Canadian company that operates as a multimedia company in Canada, has acquired On The Bay Magazine Inc., a Canadian company that publishes magazines. Total transaction value is estimated to be $643 thousand.

Iversoft Solutions has Acquired ReSoMe

Iversoft Solutions Inc., a Canadian company that provides application development and information technology consulting services, has acquired ReSoMe Inc., a Canadian digital marketing agency specializing in social media marketing, community management, content marketing, search engine optimization, and web design. No transaction terms were released.

Detroit Diesel Remanufacturing has Acquired Mascot Truck Parts

Detroit Diesel Remanufacturing LLC, a U.S.-based company that remanufactures and markets diesel engines and related component products in North America, has acquired Mascot Truck Parts Ltd., a Canadian company that engages in remanufacturing and distributing manual transmissions, differentials drivelines, steering gears, driveline products, and automatic transmission products for commercial vehicles. No transaction terms were released.

Consumer Staples (Announced)

             Agropur Cooperative to Acquire Ultima Foods

Agropur Cooperative, a  Desjardins Business Capital régional et coopératif, Caisse de dépôt et placement du Québec, Fondaction, Fonds de solidarité FTQ, Investissement Québec, Investment Arm and National Bank of Canada, Investment Arm backed Canadian company that together with its subsidiaries, engages in the processing and sale of dairy products primarily in Canada and the United States, has agreed to acquire Ultima Foods Inc., a Canadian company (also known as Aliments Ultima Inc.), that produces and sells fresh dairy products and yogurts. No transaction terms were released.

Richardson Pioneer to Acquire Webb's Crop Services

Richardson Pioneer Ltd., a Canadian company that offers seed selection, crop planning, and agronomic support services throughout the growing season, has agreed to acquire Webb's Crop Services Ltd., a Canadian company that operates an agronomic crop input retail center and provides related services. No transaction terms were released.

Richardson Pioneer to Acquire Agro Guys

Richardson Pioneer Ltd. has also agreed to acquire Agro Guys Inc., a Canadian company that provides agronomic consulting and crop inputs retail services. No transaction terms were released.

Healthcare (Announced)

Sigma-Aldrich to Acquire NATRIX Separations

Sigma-Aldrich Corporation, a U.S.-based life science and high technology company that develops, manufactures, purchases, and distributes various chemicals, biochemicals, and equipment products worldwide, has agreed to acquire NATRIX Separations, Inc., a GrowthWorks Ltd., BDC Venture Capital, Lumira Capital Corp., University Medical Discoveries Inc, D.E. Shaw Venture Capital and The Ontario Capital Growth Corporation backed  Canadian company that engages in the research, development, manufacture, and supply of single use and multi-cycle disposable chromatography products for life science, food, beverage, and water markets. No transaction terms were released.

Healthcare (Closed)

Canopy Growth has Acquired Spot Therapeutics

Canopy Growth Corporation (TSX:WEED), a Canadian company that, through its subsidiaries, produces and sells medical marijuana in Canada, has acquired Spot Therapeutics Inc., a Canadian company that produces and sells medical marijuana in Canada. Total transaction value is estimated to be $2.25 million.

Standard Graphite to Acquire Medi-Can Health Solutions

Standard Graphite Corporation (TSXV:SGH), a Canadian company that engages in the acquisition and exploration of mineral properties in Canada, has agreed to acquire Medi-Can Health Solutions Ltd., a Canadian company that is in the final stages of approval to become a licensed producer of medical marijuana for Canadians. No transaction terms were released.

Information Technology (Closed)

ZeroChaos has Acquired Loki Systems

ZeroChaos, LLC, a U.S.-backed company that provides integrated workforce management solutions to clients in the United States and internationally, has acquired Loki Systems Inc., a Canadian company that provides a suite of workforce management solutions that schedule, manage, and pay staff in medium and large enterprises. No transaction terms were released.

Trinidad Drilling has Acquired RigMinder Operating

Trinidad Drilling Ltd. (TSX:TDG), a Canadian company that designs, builds, and operates drilling rigs for the oil and gas industry in Canada, the United States, and internationally, has acquired RigMinder Operating LLC, a U.S. backed company that develops software platforms for the drilling rig operations. Total transaction value is estimated to be $49.8 million.

Altium has Acquired Upverter

Altium Limited (ASX:ALU), a U.S.-based company that develops and sells computer software for the design of electronic products in the United States and internationally, has acquired Upverter, Inc., a Canadian portfolio company of Version One Ventures that develops an online circuit design platform that enables hardware engineers to design electronics on various operating systems. Total transaction value is estimated to be $7.0 million.

Other (Announced)

Corby Spirit and Wine to Acquire Foreign Affair Winery

Corby Spirit and Wine Limited (TSX:CSW.A), a Canadian company that markets and distributes spirits and imported wines, has agreed to acquire Foreign Affair Winery, a Canadian company that produces wine. Total transaction value is estimated to be $6.2 million.

Other (Closed)

Volaris Group has Acquired Bbt Software

Volaris Group Inc., a Canadian company that is the venture capital arm of Constellation Software Inc. specializing in start-ups and early stage companies, has acquired Bbt Software Ag, a Swiss-based IT solutions company. No transaction terms were released.

F12 Networks has Acquired OnDeck Systems

F12 Networks, Inc., a Canadian company that provides Hardware-as-a-Service, managed services, and cloud solutions, has acquired OnDeck Systems Inc., a Canadian IT consultancy company. No transaction terms were released.

CEN Biotech has Acquired Eastern Starr Biotech

CEN Biotech, Inc., a Canadian, early stage, biopharmaceutical company that intends to grow, sell, process, and deliver pharmaceutical grade medical marijuana in various drug delivery mechanisms, has acquired Eastern Starr Biotech, Inc., a U.S.-backed company. No transaction terms were released.