Hydrodig, a Bentley, Alberta-based provider of hydro-excavation services, has secured a unitranche loan financing from BDC and BDC Capital’s Growth & Transition Capital division. No financial terms were disclosed. The loan’s proceeds enabled a majority ownership transfer to co-founder, Terry Romanow, who aims to grow the company in North American markets.
BENTLEY, ALBERTA, January 31, 2022 – Hydrodig, one of North America’s largest hydro-excavation companies by fleet size, received non-dilutive financing from BDC and BDC Capital’s Growth & Transition Capital division to enable a majority ownership transfer to co-founder Terry Romanow.
Hydro-excavation is the process of using pressurized water to carefully dig around existing infrastructure in places where traditional methods could cause damage. Romanow and partner Pat Lachambre originally founded Hydrodig in 1998 in Bentley, Alberta. In recent years, management has led the company’s organic expansion into Eastern Canada and the United States and its diversification into new sectors like utilities and industrial construction within crowded urban centres. With Hydrodig today counting over 25 field offices across Canada, Romanow’s plans now include further growing Hydrodig’s activities south of the border and in select Canadian markets.
To meet the company’s particular needs during this transition, BDC Capital arranged to deliver the funds through a patient unitranche loan which combines secured and unsecured debt in an integrated package featuring a blended interest rate and a predictable repayment schedule. The secured component, provided by BDC, reduces the overall cost of the financing, while the unsecured portion coming from BDC Capital gives the company more flexibility to invest in its expansion goals thanks to the partial deferment of the principal repayment to the end of the loan period. This package was arranged by David Wan, Growth & Transition Capital in Edmonton.
“The team from BDC and BDC Capital has provided a sound financial platform which enables Hydrodig to continue to deliver safe, consistent and above standard reliable services to our clients in Canada and the United States,” says Terry Romanow, President, Hydrodig. “The complexities of this dual-nation transaction were handled professionally and efficiently. BDC provided an outstanding team to deal with and I look forward to what the future will bring to us with BDC’s ongoing support and capabilities.”
“We are delighted to assist Terry Romanow and his team at Hydrodig in closing this transaction,” says Tabreez Lila, Managing Director for the Prairies, Growth & Transition Capital, BDC Capital. “Terry has shown himself to be a resilient and forward-looking entrepreneur as he simultaneously executed the profitable expansion of Hydrodig into new geographies while completing a successful shareholder buyout.”
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.