BDC Capital provides funding for JR Bearing & Power’s MBO

JR Bearing & Power, a Winkler, Manitoba-based supplier of parts for the maintenance and repair of agricultural and industrial machinery, has been acquired by management.

JR Bearing & Power, a Winkler, Manitoba-based supplier of parts for the maintenance and repair of agricultural and industrial machinery, has been acquired by management. The deal was backed by a loan provided by BDC Capital’s Growth & Transition Capital division. No financial terms were disclosed.

PRESS RELEASE

WINNIPEG and WINKLER, MANITOBA, March 22, 2021 – JR Bearing & Power Ltd., a company with a long history of growth and profitability supplying high-quality parts for the maintenance and repair of agricultural and industrial machinery in Winkler, Manitoba, was purchased by its sales and marketing manager, Chris Jacobs, with the help of non-dilutive financing from BDC Capital’s Growth & Transition Capital division.

Jacobs joined JR Bearing & Power Ltd. in 2018 after immigrating from South Africa where he owned and operated a farm business for over 15 years before selling it to a strategic buyer in 2017. He instantly added value upon joining JR by introducing a variety of optimization measures that contributed to increased sales and margins. Since the purchase, Chris Jacobs has focussed on implementing a growth strategy that emphasizes building deeper relationships with key clients, expanding JR’s service offering, and enhancing its customer value proposition.

BDC Capital’s financing complemented the new owner’s sizable equity investment. The funds were provided as a unitranche solution which brought together a personalized selection of different financial products, including some with patient features, within a single loan that gives the company the flexibility it needs to continue growing after the transaction. This type of financing is often used to fund acquisitions and ownership transitions.

“BDC Capital’s support also went well beyond financing,” explains Chris Jacobs, CEO of JR Bearing & Power Ltd. “Since I’d been established in Canada for just a few years, they also guided me through the legal and others aspects of buying a company here. What a great professional experience it was working with BDC Capital.”

This deal was conducted by Gaurav Anand, Director, Growth & Transition Capital at BDC Capital’s Winnipeg office. “As an experienced entrepreneur, Chris Jacobs approached this acquisition in a highly focussed, very deliberate and strategic manner, and with a strong vision for the company’s future,” says Anand. “BDC Capital is committed to supporting business transitions in agriculture, a critically important sector to the Canadian economy,” adds Vern Malcolm, Managing Director, Growth & Transition Capital, BDC Capital for Manitoba and Southern Alberta. “Our flexible financing solutions are well suited to an industry where year-to-year market fluctuations are common and a patient and partner-orientated approach is valued.”

About JR Bearing & Power
Locally owned and operated, JR Bearing & Power Ltd was established in the year of 1997 with the philosophy that customer service takes top priority. With the vision of being the one stop for all the farmer needs, to be there when equipment went down, and to cater for all types of equipment. It started as a small shop and with the help and support of the community, it never stopped growing. To the point now where we are known to have everything you need to keep your farm running. We treat our staff with respect, and our customers benefit from the high level of experience and continuity JR Bearing & Power offers them.

About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions.Visit bdc.ca/capital.