South East Construction, a.k.a Secon Holdings LP, has acquired Tundra Mechanical and Millwrighting Ltd, a Warman, Saskatchewan-based provider of mechanical and millwrighting services to several industries, including water treatment, waste management and agriculture. No financial terms were disclosed. The deal will give Secon, a multi-trade industrial and commercial construction company, access to a new Saskatchewan market segment. Esterhazy, Saskatchewan’s Secon is majority-owned by Canadian private equity firm Mosaic Capital Corp. Mosaic acquired the company for $15.2 million in late 2014.
South East Construction Completes Acquisition of Tundra Mechanical and Millwrighting Ltd.
CALGARY, Jan. 10, 2017 /CNW/ – Mosaic Capital Corporation (“Mosaic”) (TSX-V Symbols: M, M.PR.A and M.DB) is pleased to announce that Secon Holdings LP (“Secon”), a 75% subsidiary of Mosaic, has successfully completed the acquisition of a 70% interest in the business being carried on by Tundra Mechanical and Millwrighting Ltd. (“Tundra”). Established in 1988, Tundra provides mechanical and millwrighting services to a broad range of industries, including water treatment, waste management and agriculture. Representative customer segments have included feed mills, process mills and seed cleaning and storage companies. While Tundra performs complimentary and similar services to Secon, this acquisition will allow Secon to access a different segment of the growing Saskatchewan market. The acquisition was funded through a combination of cash and a vendor note and was at the low end of Mosaic’s usual valuation range.
Established in 1989 in Saskatchewan, Secon is a multi-trade industrial and commercial construction company, primarily servicing the potash mining and milling industry in all phases of underground and surface construction and maintenance. Secon has also worked on construction and infrastructure projects related to power generation, coal mining and crushing, fertilizer production and oilseed crushing.
Harold Kunik, President of Mosaic, commented “We are excited about the partnership between Secon and Tundra. With access to Secon’s strong marketing team and customer base, we are certain Tundra will continue to grow in the western Canada market.”
ABOUT MOSAIC CAPITAL CORPORATION
Mosaic is a Canadian investment company that owns a portfolio of established businesses which span a diverse range of industries and geographies. Mosaic’s strategy is to create long-term value for its shareholders through accretive acquisitions, long-term portfolio ownership, sustained cash flows and organic portfolio growth. Mosaic achieves its objectives by maintaining financial discipline, acquiring businesses at attractive valuations, performing extensive acquisition due diligence, utilizing optimal transaction structuring and working closely with subsidiary businesses after acquisition.
For further information: Allan Fowler, Chief Financial Officer, Mosaic Capital Corporation, 400, 2424 – 4th Street SWCalgary, AB T2S 2T4, T: (403) 270-4663, E: firstname.lastname@example.org
Photo courtesy of South East Construction