Our global M&A roundup can be found here. Our past Canadian M&A roundups can be found here.

Target: 19 Properties Totaling 849 Residential Suites Located in Netherlands

• Industry: Real Estate
• Acquirer: Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN); Rubens Capital Partners B.V.
• Target: 19 Properties Totaling 849 Residential Suites Located in Netherlands
• Size: € 170 million
• Consideration: 100% Cash
• Source of Funds: Debt
• Sell Side Advisor: Not Disclosed
• Buy Side Advisor: Not Disclosed
• Legal Advisor: Not Disclosed
• Expected Close: July 12, 2017

The Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) and Rubens Capital Partners B.V. agreed to acquire 19 properties totaling 849 residential suites located in Netherlands for €170 million on June 30, 2017.

The deal will be financed with €100.8 million of new mortgage financing with a weighted average term of 7.5 years and a weighted average interest rate of 1.9%. The rest of transaction will be financed using a euro-based loan under CAPREIT’s credit facility which currently has a 2-year hedged fixed interest rate of 1.2%.

The deal includes 102 single-family homes, 747 apartment suites and two commercial units with an occupancy rate of 97%. CAPREIT will provide property management services to new properties and Rubens Capital Partners will provide ongoing acquisition and asset management services to grow CAPREIT’s portfolio in the Netherlands.

The transaction will increase CAPREIT’s Netherlands portfolio to 1,417 rental suites in major cities in the Netherlands including Amsterdam, Utrecht, and The Hague. Given CAPREIT’s success in the Netherlands, they will be setting up their own regional office to manage the portfolio. CAPREIT continues to seek well-situated properties near public transit, parks, retail shopping, universities and schools.

Back in December of 2016, Thomas Schwartz, President and CEO of CAPREIT, stated “we have proven our ability to accretively enter new markets and quickly build a property portfolio with the size and scale to generate significant benefits for our Unitholders. We look to duplicate our success in Ireland with our new presence in The Netherlands and acquire additional properties in this very strong rental market.”

CAPREIT sees the Netherlands as an attractive opportunity with significant upside due to the current housing shortage and a strong demand for rental properties.

Target: Parkway, Inc. (NYSE:PKY)

• Industry: Real Estate
• Acquirer: Canada Pension Plan Investment Board
• Target: Parkway, Inc
• Size: USD $1.9 billion
• Consideration: 100% Cash
• Source of Funds: Internal Cash
• Sell Side Advisor: HFF Securities L.P.
• Buy Side Advisor: Not Disclosed
• Legal Advisor: Hogan Lovells US LLP
• Expected Close: Q4 2017

Canada Pension Plan Investment Board (CPPIB) entered into a definitive agreement to acquire Parkway Inc for $1.91 billion on June 30, 2017. The transaction includes a total consideration to shareholders for $1.2 billion, $573 million in net assumed liabilities, and $174 million in total cash & short term investments.

CPPIB will pay a consideration of USD $23.05 per share, which includes USD $19.05 per Parkway share and a USD $4 special dividend per share that will be paid prior to the deal closing. The deal values Parkway at an implied Enterprise value of USD $1.7 billion with an implied EV/EBITDA of 22.4x.

Parkway operates as an office REIT in Houston, Texas submarkets with a portfolio of 19 buildings that totals 8.7 million rentable square feet in Greenway, Galleria and Westchase. Houston represents one of the fastest growing US states and is ranked as the 4th largest U.S. metro economy with a GDP of $503 billion in 2015. Parkway serves established corporations including Occidental Oil & Gas Corporation, Apache Corporation, and Raymond James & Associates.

The transaction indicates CPPIB’s continuing commitment to a long-term real estate strategy consisting of stable, high-quality assets in large U.S. markets. Back in February of this year, CPPIB and two real estate investment firms acquired a 49% stake in the Greenway Portfolio from Parkway for $510 million.

Target: West Marine, Inc. (NasdaqGS:WMAR)

• Industry: Retail
• Acquirer: Monomoy Capital Partners
• Target: West Marine, Inc
• Size: $338 million
• Consideration: 100% Cash
• Source of Funds: Internal Cash, Debt
• Sell Side Advisor: Guggenheim Securities LLC
• Buy Side Advisor: Jefferies LLC
• Legal Advisors: Kirkland & Ellis LLP, Sidley Austin LLP
• Expected Close: Q3 2017

Monomoy Capital Partners entered into a definitive agreement to acquire West Marine Inc for $338 million on June 29, 2017. The transaction includes a $337 million consideration to shareholders and $1 million in options.

Monomoy Capital Partners will pay a consideration of $12.97 per West Marine share and $ 2.06 per West Marine option. The deal values West Marine at an implied Enterprise value of $288 million with an implied EV/EBITDA of 7.6x and a P/E multiple of 39.3x.

West Marine provides boating products including gear, apparel, and footwear with 254 stores in the United States, Canada, and Puerto Rico. Monomoy Capital Partners is a New York-based private equity fund that specializes in operational improvement and has experience in the retail industry.

The transaction will privatize West Marine. The distressed retail environment has many retailers considering going private, including retail giant Nordstrom, in order to focus on their long-term success and eliminate the short-term focus of being a publically traded company.

Matt Hyde, CEO of West Marine, believes the deal will put the company in a “better positioned to navigate an evolving boating industry, ensuring continuity, continued innovation, the long-term stability of the business.”

Target: Sandvine Corporation (TSX:SVC)

• Industry: Telecom
• Acquirer: Francisco Partners Management LLC
• Target: Sandvine Corporation
• Size: $548 million
• Consideration: 100% Cash
• Source of Funds: Internal Cash, Debt
• Sell Side Advisor: Canaccord Genuity Corp
• Buy Side Advisor: Not Disclosed
• Legal Advisor: Dentons Canada LLP
• Expected Close: Not Disclosed

On June 27, 2017, Francisco Partners Management LLC made a binding offer to acquire Sandvine Corporation for $548 million, including a consideration of $532 million to shareholders and $16 million in options.

Francisco Partners will pay $4.15 per Sandvine common stock and $1.96 per Sandvine option. The deal values Sandvine at an implied Enterprise Value of $393 million with an implied EV/EBITDA of 14.2x and a P/E multiple of 23.5x.

In May of 2017, Vector Capital entered into an arrangement agreement with Sandvine to acquire all outstanding shares for $3.80 per share for a total consideration of $483 million. Under its agreement with Vector Capital, Sandvine was granted a “go-shop” period to seek out competing offers. Vector Capital has until 5:00 p.m. EST on July 6, 2017 to match the new proposal from Francisco Partners.

Sandvine is a leader in network policy control for fixed, mobile, and converged communications service providers around the world. The deal would take Sandvine private in hopes of accelerating investments in long-term product and service opportunities.