BDC Capital has provided undisclosed mezzanine financing to support the management buyout of Perfexia, a Kitchener, Ontario-based maker of light metal components and heavy welded assemblies.
BDC partnered with Jeff Heffernan, formerly a Perfexia executive and minority shareholder. The seller was David Jones, the company’s owner since 2000.
BDC, which has previously backed Perfexia, invested through its Growth and Transition Capital group. Director Mark Lunick led the deal.
Founded in 1977, Perfexia specializes in laser cutting, forming and welding of components, finished parts and assemblies for the industrial, construction, transportation and consumer product sectors.
Metal fabrication company Perfexia bought out by management with financing from BDC Capital
KITCHENER, July 25, 2019—BDC Capital’s Growth and Transition Capital division provided mezzanine financing to assist Jeff Heffernan in executing a management buy-out of Perfexia, a Kitchener, Ontario company. Established in 1977, Perfexia is a full-service manufacturer of light metal components and heavy welded assemblies for the industrial, construction, transportation and consumer product sectors. Jeff Heffernan joined the company in 2013 as the general manager of its heavy fabrication division and had been a minority shareholder since 2014. With this transaction, Heffernan became the sole proprietor of Perfexia.
BDC Capital’s non-dilutive patient financing complements, and is subordinated to, the bank loan secured for this transaction. It includes flexible repayment terms that respond to the needs of the buyer, the vendor and the senior lender. This transaction was conducted by Mark Lunick, Director, Growth and Transition Capital for Southwestern Ontario.
“Perfexia is a one-of-a-kind company that I am very proud to now be the owner of,” says Jeff Heffernan, President of Perfexia. “BDC Capital provided a key piece of financing that allowed this ownership transition to occur and worked very professionally with us throughout the process. BDC Capital had previously supported Perfexia and David Jones, the primary shareholder, so Mark Lunick’s existing knowledge of Perfexia enabled him to provide immediate and helpful guidance throughout the MBO process. Mark worked closely with shareholders as well as our primary lender to jointly develop a comprehensive financing solution that met all business and stakeholder requirements.”
“With his effective leadership of the heavy fabrication division, Jeff Heffernan proved he was the right person to drive the future growth of Perfexia,” says BDC Capital’s Mark Lunick. “The succession at Perfexia, which was carefully planned over the last five years, is among the better executed ownership transfers that we have seen.”
Perfexia is a full-service metal fabrication company specializing in laser cutting, forming and CWB-certified welding of components, finished parts and assemblies for the industrial and consumer products industries. A leader in customer service, quality and on-time-delivery, Perfexia operates in a 46,000 sq. ft. ISO-certified facility in Kitchener. Visit www.perfexia.ca.
About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With more than $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.