BDC Capital has provided $2.2 million in senior debt and mezzanine financing to Fuller Industrial Corp, a Sudbury, Ontario-based maker and supplier of rubber-lined pipes, fittings and tanks for the mining, forestry and heavy industrial sectors. The funds raised will support Fuller’s acquisition of ACR Group Inc, a manufacturer of wear and impact resistant products. The deal will help Fuller expand into Western Canada and penetrate the oil and gas industry. Fuller was established in 2004 by CEO Jeff Fuller. BDC Capital invested in the company through its Growth and Transition Capital group, which earlier in 2017 received $1.8 billion in fresh funding.
BDC provides financing of $2.2 million to Fuller Industrial Corporation for acquisition
Montreal, October 23, 2017 — The Business Development Bank of Canada (BDC) has provided $2.2 million in financing to Fuller Industrial Corporation of Sudbury, Ontario. Founded in 2004 by CEO Jeff Fuller, the company is a manufacturer and supplier of rubber-lined pipes, fittings and tanks for the mining, forestry and heavy industrial sectors.
BDC’s financing is composed of a $1 million senior debt term loan as well as a $1.2 million mezzanine loan arranged by its Growth and Transition Capital division. These funds are helping finance the acquisition by Fuller of the ACR Group, which has plants in British Columbia and Alberta. Fuller’s primary goals with this acquisition are to expand into Western Canada and penetrate the oil and gas sector, ACR’s principal market.
“By enabling this acquisition, BDC’s financing has helped Fuller to become what we believe is the largest pipe rubber liner company in North America,” said Jeff Fuller, Fuller Industrial’s CEO. “Since we already have North America’s most advanced pipe fabrication plant, we think this now makes us the most competitive supplier in Canada and, in many cases, the world.”
BDC decided to fund this transaction as part of Fuller’s Western Canadian expansion strategy. The two companies’ combined will now realize cost synergies which will ultimately make them more competitive and allow for a more diversified client base. Furthermore, the acquisition allows Fuller Industrial to establish a stronger beachhead for their existing Western Canadian division. The deal was led, on the senior debt side, by Debra-Lynn McKinnon, Senior Account Manager, Acquisitions for Sudbury North and, for the mezzanine part, by Robert Shaw, Director, Growth and Transition Capital for Ottawa West, Eastern and Northern Ontario.
About Fuller Industrial Corporation
Fuller is a leading Canadian manufacturer and supplier of rubber lined piped, fittings and tanks. The business is a fully integrated operation with the ability to supply, fabricate, blast, line, paint and package all in one location. The primary services include fabrication, protective coatings and repair/maintenance work for the mining, forestry and heavy industrial segments. The company has established an expertise in formulating the correct blend of compounds in the rubber to satisfy the variety of uses for the lined piping. The rubber lining the company offers results in less corrosion as the rubber resists erosion and abrasion, resulting in a longer useful life for the pipe.
BDC is the only bank devoted exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 118 business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital and flexible growth and transition capital solutions. To find out more, visit bdc.ca.
Senior Advisor, Media Relations
Photo courtesy of Fuller Industrial Corp