Argyle Capital Partners sells majority interest in Footage Tools

• Footage Tools is a Vaughan, Ontario-based manufacturer of tools for use in the gas, water and underground utility markets
• Argyle invested in 2017, partnering with the owners in a majority buyout
• It was the firm’s first portfolio investment and represents its first exit since being founded in 2016

Argyle Capital Partners has completed the sale of a majority stake in Footage Tools, a Vaughan, Ontario-based manufacturer of tools for use in the gas, water and underground utility markets.

No financial terms were released for the deal, which closed in March. The buyer was Huntstone Capital.

Argyle invested in Footage in 2017, partnering with the owners in a majority buyout. It was the Canadian private equity firm’s first portfolio investment and represents its first exit since being founded in 2016.

At closing, including contingent payments, Argyle reported realizing sale proceeds representing a 10x multiple of invested capital and net IRR of 75 percent over a five-year holding period.

“This successful outcome validates our original investment thesis around offering succession solutions to Canadian family-owned businesses in traditional industries. As with our other portfolio investments, Argyle focused on building on the strong foundation of the original founders to generate growth, enhance profitability and ultimately create a successful outcome for all stakeholders,” said Mark MacPherson, co-founder and managing partner of Argyle, in a statement.

Argyle Capital Partners is a Toronto-based private equity firm focused on partnering with family-owned businesses in the lower mid-market. It targets old economy, industrial products businesses within service, manufacturing and distribution.