Funds managed by Canadian private equity firm Westcap Management have invested in a management buyout that acquired affiliates of DynaVenture Corp. Golden Opportunities Fund and Westcap MBO Investment LP partnered in a $25 million investment in the deal. Saskatoon-based DynaVenture comprises four distinct businesses: machining and fabrication specialist DynaIndustrial; Tackpoint, a maker of anti-friction bearing solutions; crane services provider Dyna Crane Services; and Fluid Clarification, a separation technologies and filtration systems supplier. DynaVenture said the Westcap partnership will help it execute growth plans at home and in global markets.
Saskatchewan Top 100 Company Completes Management Buyout with Golden Opportunities Fund
SASKATOON, Nov. 19, 2015 /CNW/ – Golden Opportunities Fund Inc. (“Golden”) is pleased to announce a major investment transaction to complete the management buyout of Dyna Holdings LP acquiring the DynaVenture Group of Companies comprised of four diverse, industry-leading operating entities: DynaIndustrial Inc. (“DynaIndustrial”), Tackpoint Ltd. (“Tackpoint”), Dyna Crane Services Inc. (“Dyna Crane”) and Fluid Clarification Inc. (“Fluid Clarification”) (collectively “DynaVenture”).
Golden invested $12.6 million into the management buyout in syndication with the Westcap MBO Investment LP (the “MBO Fund”), which is also managed by Westcap Mgt. Ltd. (“Westcap”), for a combined total investment of $25 million into the management buyout.
DynaVenture traces its roots back to 1947 and today employs roughly 150 people and generates approximately $35 million in annual sales from customers worldwide including several Fortune 500 companies. DynaVenture has a proven history of strong, sustainable earnings and cash flows, and each operating entity has highly experienced management teams with material ownership positions and unique core competencies providing strong opportunities for future growth.
DynaIndustrial: A fully integrated machining and fabrication company specializing in design, manufacturing and repair of heavy industrial equipment and components primarily used by customers in the steel/pipe mill, mining and oil and gas industries. Its product design of the DynaBolter is an innovative roof bolter with increased versatility and safety features for underground operations in the mining industry where it has garnered attention worldwide.
Tackpoint: Engineers and manufactures specific anti-friction bearing solutions utilizing advanced calculations and analysis tools. Tackpoint’s customer base for their patented technology covers a wide range of industrial and resource companies.
Dyna Crane: Specializes in comprehensive, professional crane services including design, manufacturing, installation, maintenance and operator training. The company’s optimal customer service and turnaround has contributed to a reputation for excellence and led to quadrupled sales since 2013.
Fluid Clarification: The leading western Canadian supplier of separation technologies and custom process filtration systems with a main focus on the oil and gas sector, oil sands, and refining sectors including some of the world’s largest oil companies.
On multiple occasions DynaVenture has received local recognition as one of Saskatchewan’s Top 100 companies by Saskatchewan Business Magazine, and has grown its client base to extend across Canada and throughout the world. “We are very pleased to have Westcap, through both Golden and the MBO Fund, as a strong capital partner that will enhance our team’s ability to continue to execute on our strategic growth plans in domestic and international markets,” says Darrin Craig, CEO of DynaIndustrial.
“DynaVenture exemplifies the type of management buyout that we target, a long-standing company with a proven track record of success, highly experienced management teams that have material ownership positions in their diversified entities with significant opportunities for growth,” comments Grant Kook, President and CEO of Golden. “This investment also complements the strategic positioning of Golden’s portfolio to increase our investment weighting in management buyouts.”
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 an elite group 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 Shutterstock