Value Unleashed

Market Update

Sixty-Five Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 4.4% higher than the comparable period in 2016. The Canadian dollar appreciated by 1.74 cents, ending the week at 82 cents relative to the U.S. dollar. The TSX outperformed the S&P 500 by 1.4% in U.S. dollar terms. WTI Crude oil rose by $0.02, ending the week at $48.54 per barrel.

Valitas Insights: Confidentiality is King… Transaction Leaks and Private Sellers

Intralinks Annual M&A Leaks Report 2017 dives into the investigative analysis of deal leakage, drawing on a sample of 5,997 publicly traded targets. The study determined that an average of 7.7% of deals were leaked over the 2009 – 2016 period, but its most compelling finding was that leaked transactions exhibited a median premium 20% higher than deals that were not leaked.

Does this leak premium effect also apply to privately acquisitions? We considered this question, drawing on the insights of Frank Guarascio, a senior M&A partner with law firm Blake, Cassels & Graydon.

To learn more, read our full article.

And on the topic of Data Breaches…

This recent DealRoom article, Data Breaches Hurt More Than Just The Pocket Book, They Can Cripple A Valuation Too, authored by Firmex, considers how cybersecurity breaches can impact the M&A process.  Worth a read!

Canadian M&A Transactions [i]

Materials (Closed)

Russel Metals has Acquired Color Steels

Russel Metals Inc. (TSX:RUS), a Canadian company that processes and distributes steel and other metal products in North America, has acquired Color Steels Inc., a Canadian company that engages in the processing and distribution of pre-finished metals in North America. No transaction terms were released.

Industrials (Announced)

CanWel Building Materials Group to Acquire Honsador Holding

CanWel Building Materials Group Ltd. (TSX:CWX), a Canadian company that through its subsidiaries, distributes building materials and home renovation products in Canada and the Western United States, has agreed to acquire Honsador Holding, LLC, a Grey Mountain Partners, LLC backed U.S.-based company that distributes building products and electrical supplies to residential and light commercial market segments primarily in Hawaii and Oregon. Total transaction value is estimated to be $98.7 million.

Industrials (Closed)

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, an Australian company that offers project management and planning services. No transaction terms were released.

Mullen Group has Acquired RDK Transportation

Mullen Group Ltd. (TSX:MTL), a Canadian company that provides transportation and related services to the oil and natural gas industry, has acquired RDK Transportation Co. Inc., a Canadian company that offers truck transportation services. No transaction terms were released.

Consumer Discretionary (Closed)

5050 Central has Acquired Artemis Technology Group

5050 Central Ltd., a Canadian company that develops a raffling platform to track and collect raffle purchases through touch screen kiosks and mobile hand-held devices, has acquired Artemis Technology Group LLC, a U.S.-based company that offers raffling and gambling services. No transaction terms were released.

The SIM Group has Acquired The Crossing Studios

The SIM Group, a U.S.-based company that supplies production and post-production equipment and offers post production services to the television and film industry, has acquired The Crossing Studios Inc., a Canadian company that offers stage and production services. No transaction terms were released.

Consumer Staples (Announced)

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 in Canada, 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 in Canada, has agreed to acquire Cannaviri Laboratories Ltd., a U.S.-based company that develops natural hemp based CBD products. Total transaction value is estimated to be $600 thousand.

Healthcare (Closed)

TorQuest Partners has Acquired Amenity Health Care

TorQuest Partners, Inc., a Canadian private equity firm, has acquired Amenity Health Care LP, a Canadian company that offers pharmacy and medical services. No transaction terms were released.

N. Harris Computer has Acquired Amazing Charts

N. Harris Computer Corporation, a Canadian company that develops software solutions for customers in utility, public sector and school groups, and healthcare group businesses in North America, has acquired Amazing Charts, LLC, a U.S.-based company that provides electronic health/medical record (EHR/EMR) software and services to healthcare providers in solo and small sized medical practices in the United States. No transaction terms were released.

Financials (Announced)

CI Financial Corp to Acquire BBS Securities

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

Financials (Closed)

HUB International has Acquired Integro

HUB International Limited, an AlpInvest Partners B.V. and Hellman & Friedman LLC backed U.S.-based company providing insurance brokerage services, has acquired Integro (Canada) Ltd., a Canadian company that provides 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 Canadian company that provides health and wellness services, including flu shots, laboratory testing, and sample collection. No transaction terms were released.

Information Technology (Announced)

EXFO to Acquire Yenista Optics

EXFO Inc (TSX:EXF), a Canadian company that designs, manufactures, and markets test, service assurance, and analytics solutions for the telecommunications industry worldwide, has agreed to acquire Yenista Optics S.A.S., a French company that designs and manufactures fiber optic test and measurement equipment for applications ranging from high bandwidth communications to scientific and research markets. No transaction terms were released.

Information Technology (Closed)

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

Lexington Partners L.P., a U.S.-based private equity and co-Investment fund, Vance Street Capital LLC, a U.S.-based private equity firm, and NB Alternatives Advisers LLC, a U.S.-based private equity and venture capital firm, have acquired RST Instruments Ltd., a Canadian company that designs, produces, and distributes geotechnical instrumentation products for the engineering instrumentation industry. No transaction terms were released.

Vision Critical Communications has Acquired Pressly

Vision Critical Communications Inc., a Difference Capital Financial Inc., TELUS Ventures, W Capital Partners, Kensington Capital Partners Limited, Wellington Financial LP, 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 Think Together and Pressly U hubs that can centralize, distribute, and optimize various content communication channels, such as content hubs, social media, newsletters, embeddable widgets, and rich insights. 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 industries, has acquired Spongelab Interactive Inc., a Canadian company that provides consulting, design, and production services for learning communities in Canada. 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., an U.S.-based company that, doing business as Computers For Marketing Corporation, develops multi-mode and voice-based survey automation software and solutions that enable market research and conduct surveys. No transaction terms were released.

Volaris Group has Acquired Furlong Business Solutions

Volaris Group Inc., a Canadian venture capital company, has acquired Furlong Business Solutions Ltd., a U.K.-based company that provides school management information systems (MIS) to schools, academies, and international schools. No transaction terms were released.

Other (Announced)

Kaizen Discovery to Acquire KZD Aspen Grove Holding

Kaizen Discovery Inc. (TSXV:KZD), a Canadian company that explores and develops mineral projects in Peru and Canada, has agreed to acquire KZD Aspen Grove Holding Ltd., a Canadian based mining exploration project that specializes in copper. Total transaction value is estimated to be $293 thousand.

Other (Closed)

Continental Energy has Acquired Continental Hilir Indonesia Pte.

Continental Energy Corporation (OTCPK:CPPX.F), a Canadian company that develops conventional and alternative energy projects integrated with upstream and downstream petroleum supply in the Republic of Indonesia, has acquired Continental Hilir Indonesia Pte. Ltd, a Singaporean company that develops small scale crude oil refinery projects in Indonesia. Total transaction value is estimated to be $680 thousand.

Doxim Solutions has Acquired Intelligent Document Solutions

Doxim Solutions ULC, a Strattam Capital LLC 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 secure eDocument and statement solutions to over 500 banks and credit unions. No transaction terms were released.

Ardo NV has Acquired VLM Foods

Ardo NV, a Belgian company that is engaged in the production, packing, distribution, and sale of frozen vegetables, fruit, pasta, and rice for retail, industrial, and foodservice markets around the world, has acquired VLM Foods Inc., a Canadian company that supplies frozen and processed food to the North U.S.-based market. No transaction terms were released.

Banyan Capital Partners has Acquired Rack Attack

Banyan Capital Partners, a Canadian private equity firm, has acquired Rack Attack, a Canadian company that retails, installs, and services automotive racks and hitches. No transaction terms were released.

B.O.B. Headquarters has Acquired Windship Trading

B.O.B. Headquarters Inc., a Canadian company that wholesales and distributes fine smoking merchandise and vaporizers has acquired Windship Trading Co., a U.S.-based company that wholesales smoking accessories. No transaction terms were released.

Avrio Capital has acquired Morris Industries

Avrio Capital Inc., a Canadian-based venture capital fund, has acquires Morris Industries Ltd, a Canadian company that manufactures technology-based agriculture equipment. No transaction terms were released.