An affilate of Equicapita Income Trust has bought Levy’s Machine Works Ltd, a Calgary-based custom design and speciality manufacturer of precision machined components. The financial details of the transaction were not published. The Levy’s acquisition is the first for Equicapita, a private equity firm that is focused on purchasing private, Western Canadian businesses with enterprise values of $5 million to $20 million. Founded as an open ended trust in 2013, the firm has its headquarters in Calgary.
Equicapita Acquires Levy’s Machine Works
15 May 2014
Equicapita Income Trust (“Equicapita”, the “Fund”) is pleased to announce the acquisition of 100% of the shares of Levy’s Machine Works (“Levy’s”) by an affiliate of the Fund. Based in Calgary, Alberta Levy’s is a custom design and speciality manufacturing company. Founded in 1980, Levy’s has been servicing a diverse customer base in the energy, electronics, medical, agriculture, aviation and instrumentation sectors for over 30 years. Its tradition of strong customer service has led to lasting relationships, stable revenue and a very predictable earnings stream, making Levy’s an ideal fit with the Equicapita business model.
“As soon as we walked through the doors of Levy’s we knew this was a company that would be a great fit for us – it is an extremely well run business and a top quartile performer amongst similar businesses in North America” noted Michael Cook, one of the co-founders of Equicapita. “The management team are first class individuals who have built a great business. Levy’s founders have shown their support and belief in the Equicapita model by taking a portion of their consideration as Preferred Trust Units in the fund and we are delighted to have them as partners. In addition, we are pleased that key senior management will remain in place after the sale – particularly Darcy Downs with whom we look forward to a long working relationship and to the continuation of his successful stewardship of this unique and profitable business .”
The deal closed on May 7th, 2014 and is the first acquisition for Equicapita. Equicapita retained Ernst & Young and Burstall Winger Zammit as advisors on the Levy’s transaction – Ernst & Young provided accounting and financial due diligence support and Burstall provided legal due diligence and structuring support.
Equicapita is a private equity buyout fund based in Calgary, Alberta. The fund is focused on acquiring private, western Canadian businesses with enterprise values ranging from $5 million to $20 million. The fund is an RRSP eligible investment vehicle that streams the cash flow from private operating companies to its investors on a priority basis.
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