Wynnchurch Capital, a middle-market buyout shop, has taken a stake in NSC Minerals Ltd. Terms of the deal, which closed in December, were not released. Based in Saskatchewan, NSC produces and distributes salt for highway de-icing, industrial, energy, construction, consumer and agricultural applications.
Wynnchurch Capital, Ltd. (“Wynnchurch”), a leading middle-market private equity firm with offices in Chicago, Dallas, Detroit and Toronto, and an affiliate office in Montreal, announced an investment in NSC Minerals Ltd. (“NSC” or the “Company”). Canada is a key market for Wynnchurch and NSC is Wynnchurch’s eighth Canadian investment. Based in Saskatoon, Saskatchewan, NSC produces and distributes salt for highway de-icing, industrial, energy, construction, consumer and agricultural applications. The Company serves customers across western Canada and the northern U.S. Wynnchurch will support the Company’s management team as they pursue geographic expansion opportunities and explore strategic acquisitions. The transaction closed in December 2011.
NSC was co-founded by current CEO Malcolm Leggett more than twenty years ago. Mr. Leggett built the business around delivering the highest quality product and unmatched customer service, ensuring that NSC customers receive an uninterrupted supply of the essential road safety product that the Company supplies. Frank Hayes, a Partner at Wynnchurch stated, “We are excited to partner with such an excellent management team that shares many of Wynnchurch’s core principles. Malcolm and his team have done a terrific job building a unique customer-centric business and we look forward to partnering with them to support an expanded growth strategy.”
“It was evident from the first meeting with Wynnchurch that they had done their homework and understood our business. We run our company by focusing on continuous improvement, emphasizing customer service in everything that we do, creating a mutually beneficial relationship with our suppliers, and developing our employees. We are excited to partner with a firm that shares these values,” said Malcolm Leggett.
Chris O’Brien, a Managing Director at Wynnchurch added, “NSC provides a market-leading, critical safety service to residents throughout Canada and the U.S. We look forward to building upon NSC’s success and helping them to expand their product offering and market reach.”
Morty White, a Managing Director in Wynnchurch’s Toronto office commented, “Canada is an important and very attractive market for Wynnchurch. We are excited to add another investment to our Canadian holdings.”
Senior debt financing for the transaction was provided by Canadian Imperial Bank of Commerce as Co-Lead Arranger, Joint Bookrunner, Fronting Agent and Administrative Agent and National Bank of Canada as Co-Lead Arranger, Joint Bookrunner and Syndication Agent. The Manufacturers Life Insurance Company provided mezzanine debt for the transaction. Blake, Cassels & Graydon LLP acted as legal counsel to Wynnchurch.
About NSC Minerals Ltd.: Based in Saskatoon, Saskatchewan, NSC is a leading provider of salt products to western Canada and the northern U.S. NSC produces and distributes bulk and packaged rock salt for highway de-icing, industrial, agricultural, and other markets. More information on NSC can be found at: www.nscminerals.com.
About Wynnchurch Capital, Ltd.: Wynnchurch Capital headquartered in the Chicago suburb of Rosemont, Illinois with offices in Dallas, Detroit and Toronto, and an affiliate office in Montreal, was founded in 1999 and is a leading middle-market private equity investment firm. Wynnchurch’s strategy is to partner with middle market companies in the United States and Canada which have outstanding management teams and possess the potential for substantial growth and profit improvement. Wynnchurch focuses on investments in niche manufacturing, business and industrial services, energy and power services, logistics and value-added distribution. Wynnchurch Capital manages a number of private equity funds with capital under management in excess of $1 billion specializing in management buyouts, recapitalizations, corporate carve-outs, restructurings and growth capital. More information about Wynnchurch Capital can be found at: www.wynnchurch.com.
Wynnchurch Capital is actively seeking add-ons for NSC, as well as Canadian opportunities generally.