As everyone sets their out-of-office until kids go back to school, we’ll likely take next week off from publishing. Barring any big news, we’ll be back next Monday with a recap of bank earnings, GDP, and more. Enjoy the last bit of summer! 🍻

Last night Roots (ROOT) announced it’s going private in a $160M deal led by Marquee Brands, which should send the stock up ~10% at the open…

… but comes at a slight discount to its long-term average valuation, a dynamic we’ve seen consistently in this recent wave of TSX takeouts. While revenue growth has returned in recent quarters…

… international expansion will be the primary focus to sustain it, which should keep a lid on margins in the near-term…

… given the difficulty in establishing Canada-heavy brands abroad, making private markets the best place to figure it out.

New home prices came in just below estimates in July, inching down 0.1%…

… on a resumed decline in Ontario and out west, while prices in eastern Canada remain more resilient.

With the build in unabsorbed inventory continuing, it’s possible that June’s improvement was a head-fake - time will tell.

Industrial product prices rose 0.6% in July, ahead of expectations for a 0.4% drop…

… driven almost entirely by a ~6% rebound in energy products, which rose despite lower crude oil prices on the back of higher crack spreads.

Lumber products also contributed, rising for the seventh month straight…

… on higher input costs, which should reverse in August - with prices down ~6%.

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