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Canadian M&A Roundup Sep 15, 2017 – Polaris Materials

Our previous Canadian Mergers & Acquisitions roundups can be found here. Our previous global M&A roundups can be found here.

Target: Polaris Materials Corporation (TSX:PLS)

  • Industry: Basic Materials – Construction Materials
  • Acquirer: Unknown US Buyer
  • Target: Polaris Materials Corporation
  • Size: $301 million
  • Consideration: 100% Cash
  • Source of Funds: Not Disclosed
  • Sell Side Advisors: Canaccord Genuity Corp.
  • Buy Side Advisors: Not Disclosed
  • Legal Advisors: Fasken Martineau DuMoulin LLP; Osler, Hoskin & Harcourt LLP; Dorsey & Whitney LLP
  • Expected Close: Not Disclosed

On September 22nd, 2017, an unknown US company made an offer to acquire Polaris Materials Corporation for $301 million.

The deal will pay $3.40 per Polaris share at an implied EV/EBITDA of 99.6x and an implied P/E multiple of 137.9x.

Polaris Materials Corporation develops and operates construction aggregate properties and projects in western North America. The company was seeking various strategic options, including M&A, “to provide long term benefits to our partners and opportunities for growth in the future, ” said Ken Palko, President and CEO of Polaris.

Back in August of 2017, Polaris received an offer from Vulcan Materials for $247 million. The new buyer is reported to be a major US construction materials company and the new offer is considered superior by Polaris’ Board of Directors. Vulcan will have 5 business days to match the new offer with the right to propose amendments to the terms of the previous offer.

To better understand our M&A write-ups, please refer to the following:

Mergers & Acquisitions
Cash or Stock Consideration for M&A
Accretion/Dilution Part I: EPS, Earnings Yield & All-Stock Transactions

Accretion/Dilution Part II: Math and Breakeven Premiums

Accretion/Dilution Part III: Using Debt for Acquisitions
Accretion/Dilution Part IV: Synergies & Sources of Funds

Sara Troka is a first year HBA student at Ivey Business School. Sara will be joining a bank in NYC next summer. She was involved in the York Finance Club as VP Marketing and the York University Student Investment Fund as a Junior Analyst. Outside of finance, Sara enjoys photography and fashion. She is an avid traveler who enjoys exploring historic cities and beaches across Europe.

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