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Canadian Market Recap: Week Ended September 22

  • Posted By: Karen Fisman, Peter Yuan, Steven McMaster, Cindy Huang, Ty Wilson, Miranda Li

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Market Update

Fifty-one Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 5.2% higher than the comparable period in 2016. The Canadian dollar depreciated by 0.75 cents, ending the week at 81 cents relative to the U.S. dollar. The TSX outperformed the S&P 500 by 0.8% in U.S. dollar terms. WTI Crude oil rose by 0.4%, ending the week at $51.03 per barrel.

According to The Lead Left, middle market covenant-lite transactions exhibit higher Debt-to-EBITDA ratios than covenanted transactions over the past three years. Year to date, US$972 billion worth of leveraged loans have been issued in the United States, exceeding each post-crisis year through the first three quarters. 

Valitas Insights:  Adapting to a Challenging Environment:  The Outlook for Private Equity

Are we in a private equity bubble that is about to burst? A recent Wall Street Journal article considers this question in light of increased stake sales, bigger funds, and record levels of investment capital. “Is it a bubble? My answer is no,” says one fund manager, whose view is shared by many of his peers. In fact, despite some challenging industry dynamics, PE fund managers interviewed in the WSJ article and for a recent Prequin report share an optimistic outlook for investment activity.  

We were curious about the Canadian PE viewpoint, so we spoke with Michael Wagman, a Managing Director at Clairvest, James Merkur, President of Intercap, and Darrell Pinto, Research Director of the Canadian Venture Capital and Private Equity Association (CVCA), to get their insights.

Read our full article to learn more.

 

Canadian M&A Transactions[i]

Energy (Announced)

Superior Plus to Acquire The R. W. Earhart Company

Superior Plus Corp. (TSX:SPB), a Canadian company that engages in the international energy distribution and specialty chemical business, has agreed to acquire The R. W. Earhart Company, a U.S.-based provider of fuel services to homes, businesses, and governments in the Midwest. Total transaction value is estimated to be $46.5 million.

Energy (Closed)

Marshall Excelsior has Acquired BASE Engineering

Marshall Excelsior Co., a Harbour Group backed U.S. manufacturer of liquefied petroleum gas and anhydrous ammonia equipment, has acquired BASE Engineering, Inc., a Canadian designer and manufacturer of automated emergency shutdown and operational controls for the refined fuels industries. No transaction terms were released.

Materials (Announced)

Fura Gems to Acquire Cobadale

Fura Gems Inc. (TSXV:FUR), a Canadian natural resource company that engages in the acquisition, exploration, and evaluation of properties internationally, has agreed to acquire Cobadale Ltd., a Republic of Mozambique based company that owns ruby mining licenses. Total transaction value is estimated to be $6.93 million.

Industrials (Closed)

TerraVest Capital has Acquired Fischer Tanks

TerraVest Capital Inc. (TSX:TVK), a Canadian manufacturer and distributer of tanks and pressure vessels for fuel and liquid containment in North America, has acquired Fischer Tanks LLC, a U.S. company that engages in refurbishing and manufacturing propane tanks. No transaction terms were released.

InstarAGF Asset Management has Acquired Skyservice Investments

InstarAGF Asset Management, a Canadian investment firm specializing in infrastructure investments, has acquired Skyservice Investments Inc., a Fulcrum Capital Partners backed Canadian company that provides aviation services. No transaction terms were released.

Consumer Discretionary (Announced)

Kinepolis Group NV to Acquire Landmark Cinemas of Canada

Kinepolis Group NV (ENXTBR:KIN), a Belgian company that operates cinema theatres internationally, has agreed to acquire Landmark Cinemas of Canada Inc., a TriWest Capital Partners and Manvest backed company that operates a chain of cinema complexes nationally. Total transaction value is estimated to be $123 million, implying a 6.8x EBITDA multiple.

Consumer Discretionary (Closed)

Journal le Nord-Côtier has Acquired Journal Le Nord

Journal le Nord-Côtier Inc., a Canadian newspaper publisher, has acquired Journal Le Nord, a Canadian company that publishes a weekly journal. Journal Le Nord was a subsidiary of Transcontinental (TSX:TCL.A). No transaction terms were released.

Uni-Select has Acquired Dash Distributors

Uni-Select Inc. (TSX:UNS), a Canadian company that distributes automotive refinish, industrial paint and related products in North America, has acquired Dash Distributors Inc., a  Canadian automotive products distributer. No transaction terms were released.

Prime Real Estate Group has Acquired Holiday Inn Express & Suites Houston East - Baytown

Prime Real Estate Group, a Canadian company that engages in real estate development activities, has acquired Holiday Inn Express & Suites Houston East - Baytown, a Pride Management backed U.S. company that owns and operates a hotel. No transaction terms were released.

Healthcare (Closed)

Premier Diversified Holdings has Acquired MyCare MedTech

Premier Diversified Holdings Inc. (OTCPK:PRDG.F), a Canadian company that, through its subsidiaries, designs, finances, and operates medical diagnostic imaging centers, has acquired MyCare MedTech Inc., a Canadian company that provides electronic healthcare solutions. Total transaction value is estimated to be $200 thousand.

Financials (Announced)

Industrial Alliance Insurance and Financial Services to Acquire Dealers Assurance Company

Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG), a Canadian company that provides life and health insurance products, has agreed to acquire Dealers Assurance Company, Inc., a U.S. company that operates as a property and casualty insurance provider. No transaction terms were released.

Industrial Alliance Insurance and Financial Services to Acquire Southwest Reinsure

Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG), has agreed to acquire Southwest Reinsure, Inc., a U.S. company that provides reinsurance services nationwide. No transaction terms were released.

Financials (Closed)

M3 Mortgage Group has Acquired Verico Financial Group

M3 Mortgage Group, a Canadian company that provides non-bank mortgage services, has acquired Verico Financial Group Inc., a Canadian company that provides mortgage brokerage services. Verico Financial Group Inc. was a subsidiary of B2B Bank. No transaction terms were released.

Local Insurance Brokers has Acquired Rock Insurance Brokers

Local Insurance Brokers Inc., a Canadian company that offers insurance brokerage services, has acquired Rock Insurance Brokers Inc., a Canadian insurance brokerage. No transaction terms were released.

Information Technology (Announced)

Sightline Payment to Acquire NRT Technology

Sightline Payments LLC, a U.S. company that provides payment solutions for gaming companies worldwide, has agreed to acquire NRT Technology Corp., a Canadian company that provides integrated ticket redemption and cash access kiosks to casino operators and ATM operators globally. No transaction terms were released.

Information Technology (Closed)

Scribble Technologies has Acquired i-on interactive

Scribble Technologies Inc., a  Summerhill Venture Partners, Amadeus Capital Partners Limited, Difference Capital Financial Inc., XDL Capital Group, Georgian Partners and Anthemis Group SA backed Canadian company that develops and provides content marketing and live publishing, has acquired i-on interactive, inc., a U.S. company that delivers marketing applications software services. No transaction terms were released.

Master Flo Valve has Acquired Dycor Technologies

Master Flo Valve, Inc., a Canadian company that designs and manufactures choke valves, control valves, and actuators for oil and gas companies worldwide, has acquired Dycor Technologies Ltd., a Canadian company that engages in integrating monitoring technology, equipment and data acquisition technology in the energy, defense, environment, and health sectors globally. No transaction terms were released.

Supply Chain Services has Acquired VisuaScan

Supply Chain Services, LLC, a U.S. company that specializes in customized data collection, barcoding, rugged mobile computing and wireless networking solutions, has acquired VisuaScan Inc., a Canadian manufacturer and distributer of barcode readers, industrial monitors, software, and card printers. No transaction terms were released.

ROCK Networks has Acquired Nova Tronics

ROCK Networks Inc., a Canadian company that supplies products and solutions in the areas of radio infrastructure and antenna systems, has acquired Nova Tronics Limited, a Canadian company that operates as a two-way radio dealer and communications systems integrator. No transaction terms were released.

Utilities (Closed)

Alterra Power has Acquired Jawbone Wind Energy

Alterra Power Corp. (TSX:AXY), a Canadian company that owns, develops, and operates renewable power projects, has acquired Jawbone Wind Energy, LLC, a U.S. company that generates power using wind energy. No transaction terms were released.

Other (Closed)

Premium Brands Holdings has Acquired Leadbetter Foods

Premium Brands Holdings Corporation (TSX:PBH), a Canadian company that manufactures and distributes food products throughout North America, has acquired Leadbetter Foods Inc., a Canadian company that primarily deals in the production and distribution of meat based food products. No transaction terms were released.

Grant Thornton has Acquired Craig Keller Professional

Grant Thornton LLP, a Canadian company that offers accounting and auditing services, has acquired Craig Keller Professional Corporation, a Canadian company that provides accounting and business advisory 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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