Deal analytics and news for entrepreneurs and dealmakers

Happy new year! With our last quarterly publication of 2017 we would like to introduce the Western CanadianIndustrial Index, a proprietary tool for readers compiled by Sequeira Partners to show public company stockperformance as an indicator of broader business trends in Western Canada. Refer to page 3.

Q4 2017 continued to be a strong quarter for mid-market transactions. Within the industrial and diversifiedsegments Q4 saw 88 disclosed transactions where either the target company or the buyer were Canadian. Of the88 transactions, 26% were oilfield services transactions and 74% were in the Industrial & Diversified sector.

Looking into 2018, there is a lot to be optimistic about. We expect strong deal flow to be supported by continuedlow interest rates and large pools of capital available for acquisitions among both strategic buyers and privateequity investors. What’s beyond 2018? Time will tell – rising interest rates combined with an already frothytransaction market has the potential to cool deal activity in the long term.

Q4 - 2017

26% 74%

Q4 2017 Transactions: Industry Split

Oilfield Services

Industrials & Diversified

Date Target/Issuer Buyers/Investors

12/18/2017 Husky IMS International Ltd. Platinum Equity, LLC

12/14/2017 MacDon Industries Ltd. Linamar Corporation (TSX:LNR)

12/12/2017 Northern Labs, Inc. Knowlton Development Corp

12/11/2017 Canadian Solar Inc. Shawn Qu & Hanbing Zhang

11/14/2017 Quest Window Systems Inc. Exchange Income Corporation

11/06/2017 Shippers Supply Inc. Spicers Canada Limited

10/26/2017 Aecon Group Inc. CCCC International Holding

10/05/2017 LaPolla Industries, Inc. Icynene Inc.

10/04/2017 CCI Thermal Technologies Inc. Thermon Group Holdings, Inc.

10/03/2017 The Bolt Supply House, Ltd. Lawson Products, Inc.

Select Transaction Highlights

Sources: Capital IQ and Sequeira Partners Research

34%

18%

2%

26% 15%

1%

4%

46%

Target Location

Of the 88 disclosed transactions in the quarter, 45% of target companies were located in Western Canada.The buyer universe continued to favor strategic parties (76% of disclosed transactions). There were threetransactions valued over $1B enterprise value in the quarter: Platinum Equity’s acquisition of Husky IMSInternational, CCCC International’s acquisition of Aecon Group and Linamar’s acquisition of MacDonIndustries.

Transactions Over the Quarter

Sources: Capital IQ and Sequeira Partners Research

39%

37%

18%

6%

Buyer Location

Western Canada Eastern Canada USA International

76%

24%

Buyer Type

Strategic Buyer Financial Buyer

0 50 100 150 200 250

Mining

Energy

Oilfield Services

Industrial & Diversified

Healthcare

IT

Real Estate

Financials

Professional Services

Tourism, Retail & Other

Telecommunications

2007 2017

2017 was another record year for mid-market transactions where both transaction volume and transaction valuations were at an all-time high across a variety of sectors. We thought it would be interesting to look at what industries drove activity and how this compares to the Western Canadian market 10-years ago – 2007, another year of record breaking M&A volumes.

Sources: Capital IQ

Western Canadian M&A – How has it changed?

Western Canadian Private Co. M&A Transaction Volume by Industry

Energy & Oilfield Services transaction volume decreased

by 79%

Industrials & Diversified

transaction volume decreased by 27%

Deal leaders:

Aurora Cannabis Inc. (TSX:ACB)• Industry: Medical Marijuana• 6 closed deals in 2017• Total transaction size - $575M+

Stantec Inc. (TSX:STN)• Industry: Engineering• 9 closed deals in 2007• Total transaction size - ND

20072017

The Industrials & Diversified sector continues to lead transaction volume. Significant notable swings occurred in the following markets:• Healthcare –Transaction volume has increased by 230% from ~23 deals in 2007 to over 76 in 2017. The growth

has been driven by strong performance in public markets for biotech and healthcare stocks along with activityin the cannabis market.

• Industrials – Transaction volume decreased by 27% primarily due to a decrease in the number of Construction& Engineering transactions. Volume in other subsectors remained strong.

• Energy – Transaction volume on the exploration and production side as well as the oilfield service sectordecreased by ~79%.

10-year Change in Industrial & Diversified Subsectors

2017 2007 Change

Agriculture 4 4 0%

Building Products 10 4 150%

Construction and Engineering 17 42 -60%

Distributors 28 40 -30%

Diversified Support Services 10 15 -33%

Power Generation 11 7 57%

Environmental and Facilities Services 11 11 0%

Heavy Machinery & Equipment 13 21 -38%

Materials 12 19 -37%

Trucking & Transportation 25 26 -4%

Breakdown of Number Industrial & Diversified – 141 Deals in 2017; 128

in 2007

The Sequeira Western Canadian Industrial Index (SWCII) is comprised of 9 companies representing differentsegments of the industrial and diversified sector in Western Canada. The index is a way to measure the overallWestern Canadian diversified and industrials market. Companies within the index have operations primarilyfocused within the region and all trade on the TSX. We have selected both large and mid-cap public companiesfor a comprehensive representation of Western Canada. Similar to the DOW Jones Industrial Average,components of this index will be adjusted over time as market conditions change.

Market Overview

Sources: Capital IQ

80

90

100

110

120

130

140

150

Rel

ativ

e In

dex

Val

ue

Sequeira Western Canadian Industrial Index

Sequeira Average Dow Jones Industrial Average S&P500 TSX Composite Index

Company Name Industry Q4 2017 90-Day Avg Q3 2017 90-Day Avg % Change

Finning International Equipment Distribution 30.74 26.73 15%

ATCO Utilities 45.83 47.21 -3%

Stantec Construction & Engineering 35.44 33.23 7%

Canadian Western Bank Financial 35.68 29.16 22%

Trican Well Service Ltd.

(TSX:TCW)

Oilfield Services 4.47 3.68 21%

Precision Drilling

Corporation (TSX:PD)

Oilfield Services 3.50 3.65 -4%

Ag Growth International Agriculture 52.05 56.26 -7%

Bird Construction Construction & Engineering 9.83 8.92 10%

Cervus Equipment Equipment Distribution 15.06 12.66 19%

Taiga Building Products Building Products 1.38 1.24 11%

Index Average 23.40 22.27 5%

Overall, Western Canadian industrial economic activity ended the year strong with 5% quarter over quartergrowth. A large driver was increasing oil and gas commodity pricing, which reached 3-year highs. Some of thestrongest performers in the index are Trican, Cervus and Finning, all of which provide services to the oil and gasmarkets in Alberta, B.C. and Saskatchewan. Canadian Western Bank also had a strong quarter as revenue fromcore operations grew by 10% year-over-year, indicating increased borrowing from Western Canadian businesses.

Introducing: Sequeira Western Canadian Industrial Index

1790, 999 West Hastings StreetVancouver, BC V6C 2W2

604-687-5300

With offices in Edmonton, Calgary, and Vancouver, Sequeira Partners is focused onproviding mergers and acquisition advisory, corporate valuations and financialopinions, and recapitalization services to mid-market energy and industrial servicecompanies. The team at Sequeira Partners has completed more than 200 mid-market transactions valued in excess of $4 billion in Canada, the United States, andcountries around the world. www.sequeirapartners.com.

About Us

Recent Sequeira Partners Transactions Our TeamAroon Sequeira, CA, CBV, ICD.D

asequeira@sequeirapartners.com780.784.0114

Mark McRae, CA, CBVmmcrae@sequeirapartners.com

780.784.0115

Julie Afanasiff, CA, CBVjafanasiff@sequeirapartners.com

780.784.0116

Ken Tarry, MBAktarry@sequeirapartners.com

604.687.5300 ext. 201

Kellie Manchester, CFAkmanchester@sequeirapartners.com

604.687.5300 ext. 202

Jordan Martel, CBV, ASA, MBAjmartel@sequeirapartners.com

587.352.2500 ext. 302

Scott Acheson, CA, CBV, CFAsacheson@sequeirapartners.com

780.784.0124

Erica McGuinness, CA, CBVemcguinness@sequeirapartners.com

604.687.5300 ext. 203

David Lang, CAdlang@sequeirapartners.com

780.784.0127

Mark Luo, CAmluo@sequeirapartners.com

587.352.2500 ext. 301

Ryan Turpin, CPArturpin@sequeirapartners.com

780.784.0121

Mike Whitfieldmwhitfield@sequeirapartners.com

587.352.2500 ext. 303

Radwa Gabriel, CPArgabriel@sequeirapartners.com

780.784.0117

400, 520 – 5TH Avenue SWCalgary, AB T2P 3R7587-352-2500

2250, 10088 102 Avenue NWEdmonton, AB T5J 2Z1

780-633-5200

VancouverEdmonton

Calgarywww.sequeirapartners.com

Source: Capital IQHighlighted Q4 2017 Canadian Industrial & Diversified Transactions

AppendixQ4 2017

VancouverEdmonton

Calgarywww.sequeirapartners.com

Target Buyer Date EV ($CAD MM)

Harrys International Manufacturing Inc. Westridge Resources Inc. (TSXV:WST.H) 12/22/2017 10

35 megawatt (MW) Hydroelectric Power Station Canadian Utilities Limited (TSX:CU) 12/21/2017 115

CTI Group Inc Accuworx Inc. 12/21/2017 ND

License for Residual Assets of Endurance Wind Universal mCloud Corp. (TSXV:MCLD) 12/20/2017 0

Veterans Financial Group LLC Greenbank Capital Inc (OTCPK:GRNB.F) 12/20/2017 0

Portfolio of Residential and Commercial Solar Fiera Infrastructure Inc. 12/19/2017 ND

Atikokan Facility of Rentech, Inc 2607043 Ontario Inc. 12/19/2017 ND

NOR-EX Ice Engineering Inc. Associated Engineering Group Ltd. 12/19/2017 ND

Substantially All Assets of T-W Pike Sales Ltd. FinishMaster Canada, Inc. 12/18/2017 ND

Husky IMS International Ltd. Platinum Equity, LLC 12/18/2017 4,952

Dalton Timmis Insurance Group, Inc. NFP Corp. 12/18/2017 ND

206 MW Ventos do Piauí I in Piauí Canada Pension Plan Investment Board; Votorantim

Energia Ltda.

12/15/2017 ND

Guelph Hydro Electric Systems Inc. Alectra Inc. 12/14/2017 ND

MacDon Industries Ltd. Linamar Corporation (TSX:LNR) 12/14/2017 1,200

ZINCNYX Energy Solutions Inc. MGX Minerals Inc. (DB:1MG) 12/13/2017 2

Les Boiseries Conrad Lajeunesse Inc. Fenplast Inc. 12/13/2017 ND

Northern Labs, Inc. Knowlton Development Corporation 12/12/2017 ND

Canadian Solar Inc. (NasdaqGS:CSIQ) Shawn (Xiaohua) Qu and Hanbing Zhang 12/11/2017 4,457

Bestland Air Ltd. Richardson Pioneer Limited 12/11/2017 ND

Four Dealerships in Canada of AutoCanada Inc. Canada One Auto Group Inc. 12/07/2017 ND

Processing and Distribution Centre Western Forest Products Inc. (TSX:WEF) 12/06/2017 12

McLeish Corr-a-Box and others Cascades Inc. (TSX:CAS) 12/04/2017 28

IntraPac International Corporation ONCAP; Berenson Capital Partners, LP 12/04/2017 ND

Mink Insurance Services Ltd Mcdougall Insurance Brokers Limited 12/04/2017 ND

Emmerson Insurance Brokers Limited Insurance Jack; Petley-Hare Limited 12/04/2017 ND

NAPEC Inc. (TSX:NPC) Oaktree Capital Management, L.P. 12/04/2017 327

Field Supply Business in Quebec of GeoShack Cansel Survey Equipment Inc. 12/04/2017 ND

All assets of House of Fara Incorporated Moulure Alexandria Moulding Inc. 11/30/2017 ND

Koester Canada, Inc. Clearford Water Systems Inc. (TSXV:CLI) 11/29/2017 8

Crown Utilities Ltd. Distinct Infrastructure Group Inc. (TSXV:DUG) 11/21/2017 17

Discover MIXTECH Manufacturing CO., LTD. Discover Energy Corp. 11/17/2017 ND

Taipak Enterprises Ltd. Tricorbraun Holdings Inc. 11/16/2017 ND

Selkirk Truss 2010 Ltd. Atlas Engineered Products Ltd. (TSXV:AEP) 11/16/2017 1

Protex Canada Inc. XPEL Technologies Corp. (OTCPK:XPLT) 11/15/2017 ND

Quest Window Systems Inc. Exchange Income Corporation (TSX:EIF) 11/14/2017 100

Aromair Fine Fragrance Company Inc. Knowlton Development Corporation 11/10/2017 ND

Anodyne Electronics Manufacturing Corp. Structural Monitoring Systems Plc (ASX:SMN) 11/08/2017 10

Source: Capital IQHighlighted Q4 2017 Canadian Industrial & Diversified Transactions

AppendixQ4 2017

VancouverEdmonton

Calgarywww.sequeirapartners.com

Target Buyer Date EV ($CAD MM)

Shippers Supply Inc. Spicers Canada Limited 11/06/2017 ND

Crop Management Network Agrico Canada L.P. 11/06/2017 ND

BioVision Seed Research Ltd. SGS Canada Inc. 11/03/2017 ND

Consultoría Colombiana S.A. WSP Global Inc. (TSX:WSP) 11/02/2017 ND

Etea Sicurezza Group Ltd LGC Capital Ltd. (TSXV:LG) 11/01/2017 ND

Pro Health Group Inc. Morneau Shepell Inc. (TSX:MSI) 11/01/2017 ND

Assurances Dalbec Ltée People Corporation (TSXV:PEO) 11/01/2017 16

HNZ Group Inc. (TSX:HNZ) Don Wall 10/31/2017 243

Data Transfer Solutions LLC SNC-Lavalin Group Inc. (TSX:SNC) 10/31/2017 58

Fenetres MQ Inc. Andersen Corporation 10/31/2017 ND

Comtrad Strategic Sourcing Inc. Ardenton Capital 10/31/2017 ND

RM2J Inc. Transtex LLC 10/30/2017 ND

North State Resources, Inc. Stantec Inc. (TSX:STN) 10/30/2017 ND

MAS Automotive Distribution Inc. Dorman Products, Inc. (NasdaqGS:DORM) 10/27/2017 ND

Candraft Detailing, Inc. DBM Global Inc. (OTCPK:DBMG) 10/27/2017 ND

Corix Water Products Inc. Groupe Deschênes Inc. 10/26/2017 ND

Aecon Group Inc. (TSX:ARE) CCCC International Holding Limited 10/26/2017 2,071

Selix Equipment Inc Equipment Sales & Service Limited 10/20/2017 ND

Columbia Recycle (1996) Ltd. Tervita Corporation 10/17/2017 ND

C Series Aircraft Limited Partnership Airbus SE (ENXTPA:AIR) 10/16/2017 ND

Planète Mazda AutoCanada Inc. (TSX:ACQ) 10/13/2017 ND

Pumptronics Incorporated Current Water Technologies Inc. (TSXV:WATR) 10/10/2017 2

DiBrina Sure Benefits Consulting Inc. Arthur J. Gallagher & Co. (NYSE:AJG) 10/05/2017 ND

LaPolla Industries, Inc. Icynene Inc. 10/05/2017 179

CCI Thermal Technologies Inc. Thermon Group Holdings, Inc. (NYSE:THR) 10/04/2017 229

Off Grid Trailers KV Private Equity Inc. 10/03/2017 ND

The Bolt Supply House, Ltd. Lawson Products, Inc. (NasdaqGS:LAWS) 10/03/2017 40

Xpress Group Titanium Transportation Group Inc. (TSXV:TTR) 10/02/2017 9