Ben-Mor, a Sainte-Hyacinthe, Québec-based sling and cable assembly manufacturer, recently acquired two Canadian companies operating in the lifting equipment sector. The companies are Winnipeg-based Saturn Industries Ltd and Roughrider Rigging Ltd, which has facilities in Saskatoon and Regina. No financial terms were released. Both acquisitions were backed by BDC Capital‘s Growth and Transition Capital division. BDC provided an undisclosed unitranche financing solution, which combines different types of secured and unsecured debt. Founded in 1992, Ben-Mor is led by President and CEO Benoît Frappier.
BDC Capital supports Ben-Mor in a double acquisition enabling it to bolster its activities in Canada
All the steps involved in providing unitranche financing were completed in record time
Montreal, May 3, 2018— Through a highly customized financing solution, BDC Capital enabled Ben-Mor, the largest manufacturer of slings and cables assembled in Canada, to acquire two companies operating in the lifting equipment sector: Saturn Industries, based in Winnipeg, and Roughrider Rigging, which has facilities in Saskatoon and Regina.
Both companies acquired by Ben-Mor were held by the same owner. It was the owner’s only condition for the sale that both businesses be acquired by the same buyer.
Ben-Mor needed financing that was tailored to the complexity of this transaction. BDC’s Growth & Transition Capital team proposed unitranche financing to Ben-Mor. This solution is designed for highly customized transactions, and its simplified loan structure is its key advantage. This type of financing combines different types of secured and unsecured debt in a single loan, which accelerates the acquisition process. In addition, the repayment terms are established based on the company’s cash flow.
“BDC offered us a comprehensive solution based on unitranche financing, allowing us to successfully carry out this acquisition, which was different from other transactions we conducted in the past,” said Benoît Frappier, President and CEO of Ben-Mor.
“Thanks to this innovative solution offered by BDC, we were able to conclude this transaction in the record time of just a month,” said Michèle Arsenault, Director, Growth & Transition Capital, BDC Capital for the Southern Quebec Region. “The simplified structure of the loan that we proposed helped speed up the acquisition process while enabling Ben-Mor to solidify its position as an industry leader in Canada.”
Ben-Mor is the largest manufacturer of slings and cables assembled in Canada. Founded in 1992, it now boasts more than 325 employees in nine facilities across North America. With its head office in Sainte-Hyacinthe, this business manufactures all of its products on Canadian soil.
About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With $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.
Senior Advisor, Media Relations
Photo courtesy of Ben-Mor