BDC Capital supports Ben-Mor in a double acquisition enabling it to bolster its activities in Canada
May 3, 2018, Montreal—Through a highly customized financing solution, BDC Capital enabled Ben-Mor, the largest manufacturer of slings and cables assembled in Canada, to acquire two companies operating in the lifting equipment sector: Saturn Industries, based in Winnipeg, and Roughrider Rigging, which has facilities in Saskatoon and Regina.
Both companies acquired by Ben-Mor were held by the same owner. It was the owner’s only condition for the sale that both businesses be acquired by the same buyer.
Ben-Mor needed financing that was tailored to the complexity of this transaction. BDC’s Growth & Transition Capital team proposed unitranche financing to Ben-Mor. This solution is designed for highly customized transactions, and its simplified loan structure is its key advantage. This type of financing combines different types of secured and unsecured debt in a single loan, which accelerates the acquisition process. In addition, the repayment terms are established based on the company’s cash flow.
“BDC offered us a comprehensive solution based on unitranche financing, allowing us to successfully carry out this acquisition, which was different from other transactions we conducted in the past,” said Benoît Frappier, President and CEO of Ben-Mor.
“Thanks to this innovative solution offered by BDC, we were able to conclude this transaction in the record time of just a month,” said Michèle Arsenault, Director, Growth & Transition Capital, BDC Capital for the Southern Quebec Region. “The simplified structure of the loan that we proposed helped speed up the acquisition process while enabling Ben-Mor to solidify its position as an industry leader in Canada.”
Ben-Mor is the largest manufacturer of slings and cables assembled in Canada. Founded in 1992, it now boasts more than 325 employees in nine facilities across North America. With its head office in Sainte-Hyacinthe, this business manufactures all of its products on Canadian soil.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.