Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich in this file photo.MICHAEL DALDER/Reuters
DEAL OF THE DAY: First Mining bulks up
First Mining Finance Corp. has agreed to acquire all of the issued and outstanding common shares of Gold Canyon Resources Inc. and PC Gold Inc. Upon completion of the transaction, the former shareholders of Gold Canyon will hold approximately 55.4 per cent of the shares of the resulting company, former shareholders of PC Gold will hold approximately 9.6 per cent of the shares of the resulting company and the current shareholders of First Mining will hold approximately 35 per cent of the shares of the resulting company.
The transactions imply a value of 35 cents per Gold Canyon share and 9 cents per PC Gold share, representing a premium of approximately 204 per cent for Gold Canyon and 255 per cent for PC Gold. Press release
MERGERS AND ACQUISITIONS
Canadian engine producer buys U.S. peer
Canada's Westport Innovations Inc., which develops motor vehicle engines, has agreed to buy U.S. peer Fuel Systems Solutions Inc in an all-stock deal. Fuel Systems shareholders will receive 2.129 Westport shares for each share held, representing a 10-per-cent premium. The transaction works out to $7.54 (U.S.) per Fuel Systems share. Full story
Montreal publisher buys N.Y.-based packaging company
Printer and publisher Transcontinental Inc. of Montreal has agreed to buy New York-based Ultra Flex Packaging Corp. for $80-million (U.S.) in cash to expand its reach in the U.S. Ultra Flex has about $72-million in annual revenue, which will expand Transcontinental's packaging division to about $150-million in annual revenue. Full story
U.S. pest control company bought for $425-million
British company Rentokil Initial PLC has agreed to buy U.S. pest control business Steritech for $425-million (U.S.), marking its biggest deal in a decade. Rentokil said the deal, which is subject to regulatory approval, strengthens its position as the No. 3 pest control business in a U.S. market worth about $7.5-billion. Full story
Canadian ice cream consolidation
Nova Scotia's Scotsburn Ice Cream Co. has completed its purchase of Quebec-based Aliments Lebel Inc. Terms of the deal were not disclosed. Aliments will continue to operate and be led by Gaétan Lebel, the company's president and founder, and the work force of 160 will be maintained. Press release
PRIVATE EQUITY AND VENTURE CAPITAL
Ivernia acquires and recapitalizes
Mining company Ivernia Inc. of Toronto has agreed to acquire Geo Zone Exploration Ltd., a mineral exploration company with assets and properties in the United States, for about $30-million (U.S.). Enirgi Group Corp., Ivernia's majority investor, will convert about $12.5-million of outstanding debt owed by Ivernia to Enirgi into common shares. Upon the close of the deal, which is expected in November, Enirgi will have an 85.1-per-cent interest in Ivernia. Press release
ANALYSIS AND INSIGHT
U.S. banks snare European M&A deals
U.S. banks have captured 51.2 per cent of the revenue from European mergers and acquisitions this year, the highest proportion of European M&A fees that U.S. banks have garnered since 1998, according to Dealogic.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. are the biggest winners, grabbing 10.8 per cent and 8.7 per cent, respectively, of fees from European deals. Rothschild is the highest-ranked European bank at third with 7.4 per cent of M&A revenue. Full story
Three-way race for GE Capital's Australian business
GE Capital has three final participants in the final round of an auction of its Australian commercial lending and leasing businesses, a person with direct knowledge of the matter told The Wall Street Journal. The final participants are said to be the American private investment funds Sankaty Advisors, Lone Star and HNA Group of China. Full story
Whirlpool vs. Middleby for British cookware maker
Whirlpool Corp. is set to battle Middleby Corp. of Elgin, Ill., for Britain's Aga Rangemaster, maker of range cookers and kitchenware. Aga accepted a $201-million (U.S.) offer from Middleby in July, saying it could benefit from the U.S. firm's global distribution network. Aga has opened its books to Whirlpool but said it recommends Middleby's bid for now. Full story
Know of any coming deals we should cover? Have suggestions for making the Daily Deal Roundup more useful? E-mail me at deals@globeandmail.com. I'll respond personally to every e-mail.