BDC Capital has earmarked $900 million for deals backing ownership changes in Canadian small businesses. The initiative is part of the $1.8 billion in fresh funding supplied to BDC Capital’s Growth and Transition Capital (GTC) division, announced last April, for mostly mezzanine debt and growth equity financings. The new allocation will support business successions through management buyouts, acquisitions and dividend-recaps. Senior Vice President Patrick Latour said GTC has financed 53 deals valued at $142 million since April. Last month, it provided funding to Fuller Industrial Corp to support the company’s acquisition of ACR Group Inc.
BDC commits $900 million to invest in business transitions
Montreal, December 4, 2017─BDC Capital, the investment arm of BDC, is pleased to announce it has earmarked $900 million for change of ownership transactions, as part of the $1.8 billion it committed to investing in high-potential firms over five years, announced last April.
BDC supports business transitions through management buy-outs, acquisitions and dividend-recaps. With BDC Capital’s help, business owners have the opportunity to withdraw capital while maintaining ownership of the company, which is often the first step in a phased succession approach.
“This is just the beginning,” says Jerôme Nycz, Executive Vice President at BDC Capital. As stated in a recent BDC study released November 8, Canada is expecting a wave of business transitions in the coming five years. “As many Canadian entrepreneurs expect to acquire another company in the near future, BDC is sending a clear message: we are here to partner with Canada’s business owners looking for growth capital to become champions in their industry.”
“Our team has been active in addressing ownership transitions,” says Patrick Latour, Senior Vice President, Growth & Transition Capital at BDC Capital. “Since April 2017, BDC Capital has successfully financed 53 transitions totalling $142 million, which confirms that our offering fills a real need in the market.”
Earlier this year, BDC Capital provided financing to Fuller Industrial Corp, a Sudbury, Ontario-based maker and supplier of rubber-lined pipes, fittings and tanks for the mining, forestry and heavy industrial sectors. The funds raised supported Fuller’s acquisition of ACR Group Inc., a manufacturer of wear and impact resistant products. The deal will help Fuller expand into Western Canada and penetrate the oil and gas industry.
BDC Capital also financed Intelcom, which provides same-day and next-day parcel deliveries, courier services, distribution and other specialized services. The company focuses on last-mile consumer products delivery. BDC’s help has enabled the establishment of a strong national network, making Intelcom one of the top last-mile delivery providers in Canada.
About BDC Capital
With more than $2 billion under management, BDC Capital is the investment arm of BDC, serving as a strategic partner to Canada’s most innovative and high potential
firms. It offers a range of equity, venture capital and flexible growth and transition capital solutions to help Canadian entrepreneurs scale their businesses into global champions. To find out more, visit bdc.ca/capital.
Senior Advisor, Media Relations, BDC
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