H.J.R. Asphalt completes $26.3 mln MBO with Golden Opportunities

H.J.R. Asphalt LP, a Saskatoon-based highway infrastructure company, has completed a $26.3 million management buyout in partnership with Golden Opportunities Fund, an affiliate of Canadian private equity firm Westcap Management. The transaction saw Golden Opportunities invest $10.5 million in syndication with another Westcap fundWestcap MBO Investment LP, to secure majority ownership of H.J.R. Asphalt alongside key executives. The company said Westcap’s investment brings financial, strategic and operational support to its role as a solutions provider in Saskatchewan’s road construction industry. Last November, Westcap invested in DynaVenture Corp‘s buyout.


Highway infrastructure company, H.J.R. Asphalt, completes management buyout with Golden Opportunities Fund

SASKATOON, Jan. 8, 2016 /CNW/ – Golden Opportunities Fund Inc. (“Golden”) is pleased to announce an investment transaction to complete the management buyout of H.J.R. Asphalt Partnership (“HJR Asphalt” or the “Company”).

Golden invested $10.5 million into the management buyout, in syndication with the Westcap MBO Investment LP (the “MBO Fund”), which are both funds under the management of Westcap Mgt. Ltd. (“Westcap”). The total transaction value was $26.3 million to acquire a majority ownership of HJR Asphalt alongside key executive employees.

Founded in 1988, HJR Asphalt is a long-standing Saskatchewan highway construction company and a market leader as one of the Province’s largest paving companies. The Company hauls, grades, and compacts road bases, resurfaces or mills existing roads, and paves new asphalt concrete. HJR Asphalt lays approximately 400,000 tonnes of asphalt on roads across Saskatchewan annually. Since its beginnings, HJR Asphalt has grown from operating one cold-mix mobile asphalt plant to operating five portable asphalt plants, three paving crews, one base crew, a cold-mix crew, and a team of project managers and engineers. The Company employs up to 120 people at its peak time with a number of customers including the Saskatchewan Department of Highways and Transportation, rural municipalities and other heavy civil construction companies.

Reg Willick, CEO and one of the key founders of HJR Asphalt, will continue to be involved in the day-to-day operations of the Company alongside its highly experienced management team. “Westcap’s investment provides the financial support with the right balance of strategic and operational support as our Company continues to exceed and provide innovative and effective solutions in the road construction industry in Saskatchewan.”

“Our investment in HJR Asphalt further reinforces our position in the market as a strong strategic partner involved in the succession plans of Saskatchewan business owners,” commented Grant Kook, President and CEO of Golden. “We value the culture of HJR Asphalt, are very pleased to have it included within our diverse portfolio of successful management buyouts, and look forward to being a part of the Company’s future success and infrastructure development opportunities across our Province.”

About Golden Opportunities Fund Inc.: Golden is Saskatchewan’s longest-standing Provincial labour-sponsored venture capital corporation. The Fund is managed by Westcap Mgt. Ltd., Saskatchewan’s largest venture capital and private equity Fund Manager with over half a billion of assets under management – ranked as Top 10 Most Active Private Equity Investors in Canada by the Canadian Venture Capital & Private Equity Association, released in August 2015.

About Westcap MBO Investment LP: The MBO Fund is a high-net-worth private equity fund, comprised of business leaders and local institutions, which targets the increasing number of successful small to medium-sized enterprises in Western Canada that are seeking succession planning. The MBO Fund is also managed by Westcap Mgt. Ltd.

For further information: Grant Kook, President and CEO, Westcap Mgt. Ltd., 830 – 410 – 22nd St., E., Saskatoon, SK, Tel: (306) 652-5557; Wanda Hunchak, Vice President, Westcap Mgt. Ltd., 830 – 410 – 22nd St., E., Saskatoon, SK, Tel: (306) 652-5557

Photo courtesy of H.J.R. Asphalt LP