Canadian Space Services and CSS Wind of Carp, Ont. acquired with $800,000 financing from BDC Capital
OTTAWA and TORONTO, August 30, 2019—CSS Industrial Group of Companies (“CSS Group”), a newly formed privately owned holding company, has acquired Canadian Space Services (“Canadian Space”) and CSS Wind of Carp, Ontario with the help of $800,000 in mezzanine financing from BDC Capital’s Growth and Transition Capital division. The two businesses join Midstream Infrastructure Protection Technologies Inc. (“MIPT”) of Toronto, Ontario under the umbrella of CSS Group. Canadian Space maintains and repairs dome-shaped enclosures for radars, known as “radomes”, while CSS Wind provides blade repairs and other services for wind turbines. For its part, MIPT specializes in servicing industrial installations in hard-to-access locations using industrial rope access techniques, suspended scaffolding, and specialized machinery.
CSS Group seeks to achieve synergies and growth by bringing together the expertise and skill sets of Canadian Space, CSS Wind, and MIPT. Allan Duncan, who had been the owner of Canadian Space since 1989 and founded CSS Wind in 2011, has been appointed president of CSS Group.
BDC Capital’s non-dilutive patient financing complements the personal investments of the private owners of CSS Group. The mezzanine structure fits the expected growth and investment profile of the combined businesses and has been personalized to reflect the unique needs of the CSS Group.
“I’m very pleased to see the new organization merge together to further intensify our focus and commitment to providing best-in-class field service execution to our long-standing clients. The three operating companies will continue to provide safe and economical services to our customers throughout Canada,” says Allan Duncan, President of CSS Group.
This deal was led by Christina Howard, Director, Growth and Transition Capital at BDC Capital’s Ottawa office. “CSS Group is bringing together three unique businesses that share a common skill set, which will allow them to diversify their offering and more fully leverage their respective labour forces,” says Howard. “This combination will ensure the continuity of Canadian Space, CSS Wind, and MIPT while also creating operating synergies and savings for their clients.”
About CSS Industrial Group of Companies
CSS Group is the owner of three operating companies, engaged in providing field services to Canadian government organizations and private businesses: Canadian Space Services (www.canspace.com) has serviced government and private radomes in Canada since 1970; CSS Wind (www.csswind.ca) has performed blade repair and other services for Canadian utilities and independent power producers since 2011; and MIPT (www.mipt.ca) has provided field services to industrial clients since 2015.
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.