Q2 2025

Canadian Mid-Market

The Bank of Canada (BoC) implemented two interest rate cuts of 50 basis points (bps) each in Q4 2024, reducing the key interest rate from 4.25% to 3.25%. The interest rate cuts occurred in October and December 2024 in response to easing inflation and slower-than-expected economic growth. Despite a more favourable interest rate environment, M&A activity noticeably declined in Q4 2024. This downturn was primarily due to companies adopting a cautious, wait-and-see approach — influenced by expectations of further rate cuts, uncertainties regarding tariffs, and the future of free trade in North America amid the changing administration in the United States (U.S.). Consequently, many transactions that may have otherwise taken place during the quarter were deferred. M&A activity declined by 19.6% quarter-over-quarter, with the number of transactions decreasing from 382 in Q3 2024 to 307 in Q4 2024. The adjacent chart summarizes transaction count by sector in Q4 2024, and corresponding sector highlights are noted below:

307

Transactions

Consumer Staples 11

Utilities 01

Materials 77

Industrials 55

Financials 36

Information Technology 45

ConsumerDiscretionary 24

Healthcare 24

Energy 19

Communication Services 15

Q4 2024 Transaction Count by Sector

The Industrials sector followed with 55 transactions, accounting for 17.9% of the total transaction count in Q4 2024. A notable transaction within the sector was the announcement of VRC Companies, LLC.’s acquisition of Redishred Capital Corp., which valued the latter at an EV of $129.1 million.

The Materials sector led the quarter with 77 transactions, accounting for 25.1% of the total transaction count in Q4 2024. A notable transaction within the sector was Carlisle Companies Incorporated's acquisition of Plasti-Fab, which valued the latter at an Enterprise Value (EV) of $357.7 million.

The Utilities sector saw the fewest transactions in Q4 2024 with only one deal, decreasing from the five recorded in Q3 2024. The only transaction within the sector was Metlen Energy & Metals S.A.'s acquisition of a 75% stake in Sunnynook Solar Energy Inc., which valued the latter at an EV of $59.3 million.

Quarterly Transaction Count

Transaction Count

Equity Markets

Canadian Mid-Market

Select M&A Transactions

Equity Markets

Canadian Economic Update

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Q4 2024 Sector Performance

Information Technology

19.3 %

Financial

5.9%

Consumer Staples

2.7%

Consumer Discretionary

1.1%

Industrials

0.1%

Energy

(1.9%)

Utilites

(2.6%)

Healthcare

(4.9%)

Materials

(6.0%)

Communication Services

(17.4%)

Carlisle Companies Incorporated (Carlisle)

Tourmaline Oil Corp.(Tourmaline)

FactSet Research Systems Inc. (FactSet)

has acquired

ClosedDec 18, 2024

EV$357.7M

EV/EBITDANot Disclosed

EV/Revenue2.4x

Carlisle Companies Incorporated (Carlisle) is a leading supplier of innovative building envelope products and solutions for energy-efficient buildings. Through its building products businesses — Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT) — Carlisle delivers innovative, labour-reducing, and environmentally responsible products and solutions. Carlisle was founded in 1917 and is based in Scottsdale, Arizona. Plasti-Fab is a provider of expanded polystyrene insulation products in Canada and the Midwestern U.S. Plasti-Fab operates eight manufacturing locations in Canada and three in the U.S., serving commercial, residential, and infrastructure markets. Plasti-Fab was founded in 1968 and is based in Calgary, Alberta. The acquisition of Plasti-Fab provides Carlisle with vertically integrated polystyrene capabilities for its Insulfoam EPS business. The acquisition also enhances scale, supports retail channel expansion, and addresses key geographic gaps in the U.S. and Canada. Additionally, the transaction delivers $14 million in identified cost synergies.

is acquiring

AnnouncedNov 6, 2024

EV$300.0M

EV/EBITDANot Disclosed

EV/Revenue2.4x

Tourmaline Oil Corp. (Tourmaline) is a Canadian senior crude oil and natural gas exploration and production company. Tourmaline is focused on long-term growth through an aggressive exploration, development, production, and acquisition program in the Western Canadian Sedimentary Basin. Tourmaline was founded in 2008 and is based in Calgary, Alberta. Todd Energy Canada Limited (Todd Energy) is part of The Todd Corporation Limited, a Wellington-based conglomerate with diversified operations in energy, property development, healthcare, and technology. Todd Energy focuses on developing oil and natural gas properties in Alberta's Montney fields, which are known for their substantial long-term potential. Todd Energy was founded in 2014 and is based in Calgary, Alberta. Tourmaline’s acquisition of Todd Energy strengthens Tourmaline’s position in the Birch Montney shale gas region and aligns with Todd Corporation Limited’s strategy to refocus its resources in New Zealand.

has acquired

ClosedNov 1, 2024

EV$173.7M

EV/EBITDANot Disclosed

EV/Revenue2.4x

FactSet Research Systems Inc. (FactSet) is a global provider of financial data and software solutions, serving investment professionals. FactSet offers subscription-based access to comprehensive data and intelligence on securities, companies, industries, and key personnel. This enables its clients to conduct research, analyze markets, monitor performance, and manage portfolios efficiently. FactSet was founded in 1978 and is based in Norwalk, Connecticut. Platform Group Limited (doing business as Irwin) offers a streamlined investor relationship management platform that integrates people, data, and insights. Its suite of tools, which combines intuitive design with workflow automation, provides actionable insights for investor targeting, shareholder monitoring, relationship management, and engagement analytics. Irwin was founded in 2017 and is based in Toronto, Ontario. The acquisition of Irwin represents FactSet’s commitment to expand its offerings for investor relationship management and corporate professionals, aligning with the company's strategy to offer comprehensive solutions throughout the financial services industry.

S&P/TSX Composite Index (^GSPTSE) - Index Value

2.9%

About MNP Corporate Finance

CAD/USD Exchange Rate

CAD Per USD

Historical

Forecast

1.43

Note: RBC forecasts a Q1’25 CAD/USD exchange rate of 1.43.

2025F

2.0%

Q1'24

5.00%

2024F

3.25%

Year

Canada

Overnight Rate (%)

2025F

1.3%

Q1'24

2.0%

2024F

1.3%

Year

Canada

Real GDP Growth (YoY % change)

2025F

7.0%

Q1'24

5.9%

2024F

6.3%

Year

Canada

Unemployment Rate (%)

2025F

228

Q1'24

245

2024F

241

Year

Canada

Housing Stats ('000s)

2025F

1.7%

Q1'24

2.8%

2024F

2.3%

Year

Canada

Consumer Price Index (YoY % change)

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Candian Economic Update

From Coast to Coast

Hands-on Approach

Local & International Reach

Integrated Service Offering

From Coast to Coast MNP Corporate Finance (MNPCF) has a dedicated team of over 100 M&A, capital markets, and due diligence professionals across Canada. MNPCF works with clients in virtually all industries as they prepare, plan, and execute transactions. Our typical transactions range in value between $3 million and $300 million.

Hands-on Approach Current M&A transactions require a hands-on approach from start to finish including the active engagement of senior resources. Our senior resources are dedicated to our clients and are available as necessary and appropriate. We keep our clients regularly informed of the engagement status, issues we are encountering, successes, and overall progress.

Local & International Reach MNP is a participating firm within Praxity, a unique global alliance of independent accounting/advisory firms created to answer global business needs. As a member of Praxity, we are able to offer access to corporate finance, accounting, and tax advisory services worldwide.

Integrated Service Offering We draw on the vast experience and deep specialist knowledge network of our partners locally, nationally, and internationally as specialty issues arise, such as pre-transaction tax planning, transaction structuring, estate planning, valuation, due diligence, performance improvement, and risk management.

MNP Corporate Finance is a leader in providing transaction advisory services, including divestitures, financing, due diligence and acquisitions. With offices strategically located across Canada, we have the experience and expertise organizations need to take advantage of emerging opportunities in the national and global marketplace.

300+

Closed transactions(last 10 years)*

5B+

Total enterprise value(last 10 years)*

Helping clients prepare, plan & execute transactions

Food & Beverage

Retail & Distribution

Manufacturing

Agriculture

Transportation

Construction

Software

Financial Services

Materials

Healthcare

Pharmaceutical

Technology

Energy

Oilfield Services

Real Estate

Automotive

Industry Experience

Quarterly Industry Reports Q1 2025

Agriculture

Dealerships

Engineering & Construction

Food & Beverage

Healthcare Services

Manufacturing

Oilfield Services

Technology

* Data Sources are listed in the downloadable report

Divestitures

Acquisitions

Financing

Due Diligence

TransactionAdvisory Services

Learn more about our services

View our transactions

*Does not include due diligence engagements

Select Q4 2024 Transactions - Canada