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CAI-backed Universal Group buys Signalisation de l’Estrie

Universal Group has acquired Signalisation de l’Estrie, a Sherbrooke, Quebec-based provider of traffic control services and equipment rentals.

Universal Group has acquired Signalisation de l’Estrie, a Sherbrooke, Quebec-based provider of traffic control services and equipment rentals. No financial terms were disclosed. Universal, a Langley, British Columbia-based traffic management and control services company, is backed by CAI Capital Partners and CAI’s co-investors BDC Capital, Roynat Equity Partners and Frind Enterprises.

PRESS RELEASE

CAI Announces Universal Group’s Acquisition of Groupe Signalisation

Vancouver, BC – May 5, 2022 – CAI Capital Partners (“CAI”) is pleased to announce that its portfolio company, the Universal Group, and its related companies (together, “Universal”) has successfully closed the strategic acquisition of Signalisation de l’Estrie and its subsidiaries (collectively “Groupe Signalisation”).

Groupe Signalisation began operations in Québec in 1989 and has grown to serve more than 400 customers across the province from its seven locations. The company is led by Matthieu Collin and Dany Guillemette each of whom will continue to lead the business.

“The acquisition of Groupe Signalisation further builds Universal Group’s market share and commitment to our many employees and clients in Québec. We are excited to have our new partners from GS joining the Universal Group team, namely Matthieu, Dany, Marc-Antoine, Pierre Éric and David. Together, we will continue provide a one stop shop for traffic management to our clients and further career opportunities for our employees,” said Mike Menzies, CEO of Universal Group.

The acquisition expands Universal’s geographic presence, enhancing its strong national platform for further growth and will allow the combined organization to better support and service its customers and provide enhanced opportunities for its ~2,000 employees across the country.

“This marks the seventh successful add-on acquisition since we first invested in the traffic control services sector in November 2018. It is an exciting step for Universal Group and further transforms the company into the largest national platform for traffic control services in Canada,” said Rob Wildeman, CAI Partner.”

CAI’s equity co-investment partners in the combined organization include BDC Capital, Roynat Equity Partners, and Frind Enterprises. Debt financing for the transaction was provided by Bank of Montreal, Canadian Imperial Bank of Commerce and The Bank of Nova Scotia. Universal was advised on the transaction by Blakes, Cassels & Graydon, Lawson Lundell LLP and MNP Transaction Services.

About Universal Group

Universal is the largest traffic management and control services provider in Canada. Universal provides traffic control personnel, lane closure services, traffic control equipment, traffic management plans, road maintenance and other services. The company is headquartered in Langley, British Columbia with locations across British Columbia, Alberta, Ontario and Québec. For additional information, please visit www.theuniversalgroup.ca.

About Groupe Signalisation

Groupe Signalisation is a leading provider of traffic control services and equipment rental in Quebec. The company is headquartered in Sherbrooke, Quebec with six additional locations across the province. For additional information, please visit www.groupesignalisation.ca.

About CAI Capital Partners

CAI Capital Partners is a Vancouver-based private equity firm focused on partnering with and growing founder-owned businesses in the Canadian and US lower middle market. Over three decades, CAI has invested over C$1.5 billion of equity capital into companies across North America. For additional information, please visit www.caifunds.com.

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. For additional information, please visit www.bdc.ca/capital

About Roynat Equity Partners

Roynat Equity Partners facilitates growth and creates wealth in established mid-market private companies by providing patient capital, advice and contact networks to Canadian entrepreneurs. With over $300 million in committed capital and offices across Canada, Roynat Equity Partners is dedicated to helping mid-market companies grow and achieve their business goals. Flexible investment structures are tailored to the needs of partners and include common equity, preferred equity, and convertible debt and can be part of a complete financing solution provided by Roynat Capital and Scotiabank. Roynat Equity Partners is a division of Roynat Inc. which is a wholly owned subsidiary of Scotiabank. For additional information, please visit www.roynat.com.

About Frind Enterprises

Frind Enterprises is part of the Frind Group of Companies, a family office based in Vancouver, BC with a North American focus in real estate, private equity, venture capital and alternative investments. For additional information, please visit www.frindproperties.com.