Canadian specialty finance firm Crown Capital Partners has extended mezzanine debt financing to Corrosion Service, a Markham, Ontario-based provider of corrosion protection and engineering solutions for specialized engineered capital and infrastructure assets. The value of the investment was not disclosed. Corrosion Service said the deal, which was structured by Canadian investment bank FirePower Capital, will support management’s purchase of the business from shareholders. Crown Capital, which has offices in Toronto and Calgary, recently filed a prospectus to launch an initial public offering.
FirePower Capital Advises Corrosion Service in Connection With Management Buyout Financed by Scotiabank and Crown Capital Partners
TORONTO, ONTARIO–(Marketwired – June 1, 2015) – FirePower Capital (“FirePower”), Canada’s entrepreneurial investment bank for the lower mid-market, is pleased to announce that it acted as the exclusive advisor to Corrosion Service (“Corrosion”), with regards to its recent debt capital raise by Scotiabank and Crown Capital Partners (“CCP”).
Dean Rookes, CEO of Corrosion, engaged FirePower to raise the necessary capital to buy out other shareholders in the business. “As with most situations involving shareholders, I realized early on that an investment bank could play a critical role in managing this sensitive transaction. The team at FirePower provided invaluable guidance and advice,” said Mr. Rookes.
FirePower structured a transaction, Scotiabank funded the senior debt, and CCP, funded the mezzanine debt.
About FirePower Capital
FirePower Capital is Canada’s entrepreneurial investment bank that focuses exclusively on advising private lower mid-market companies in Canada on their strategically important M&A and non-dilutive capital financing transactions. FirePower Capital is based in Toronto.
About Corrosion Service
Corrosion Service has been a leader in the science of corrosion prevention since it was founded in 1950. The company provides proprietary corrosion protection & engineering solutions for high-value specialized engineered capital and infrastructure assets. Headquartered in Markham, Corrosion has 9 locations across North America.
Scotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 86,000 employees and assets of $837 billion (as at April 30, 2015), Scotiabank trades on the Toronto (TSX:BNS) and New York Exchanges (NYSE:BNS). Scotiabank distributes the Bank’s media releases using Marketwired. For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankNews.
About Crown Capital Partners
Crown Capital Partners is a leading provider of growth capital to middle market companies throughout Canada. The firm focuses on providing specialized financing solutions including structured equity, subordinated term, and bridge loans for acquisitions, management buy-outs, growth financings and recapitalizations. It has offices in Calgary and Toronto.
Ilan Jacobson, MBA
President & CEO
Photo courtesy of Corrosion Service