Firefighting equipment company Rocky Mountain Phoenix Inc. completes management buyout with financing from BDC Capital
EDMONTON and RED DEER, August 27, 2020—A management buyout group acquired full ownership of Rocky Mountain Phoenix Inc. of Red Deer, Alberta from the previous ownership with the help of non-dilutive funding from BDC Capital’s Growth & Transition Capital group. Members of the management team were brought into the company several years ago with this eventual transition in mind. With a rich history spanning over 70 years, Rocky Mountain Phoenix Inc. is a one-stop firefighting equipment sales and service company covering all of Western and parts of Atlantic Canada. It is the region’s exclusive dealer of Rosenbauer fire apparatus and a key distributor of top brands of firefighting equipment including MSA, Hurst and Innotex products. It also provides mobile and in-house servicing of a wide range of apparatus and equipment.
To meet the particular needs of the company, BDC Capital’s patient and flexible mezzanine financing was designed to protect the company’s cash flow to allow future growth while complementing previous investments made by the ownership team.
When the COVID-19 crisis started, Rocky Mountain Phoenix strived to maintain its operations, supporting essential services in Canada. However, given the uncertainty of the situation, the company also secured additional financing in the form of a special working capital financing that is part of BDC Capital’s program to provide support to businesses in Canada affected by COVID-19. These loans feature favourable interest rates and patient repayment terms designed to give businesses time to recover.
Glenn Jacques, Principal Shareholder and Chairman of the Board commented, “We were very pleased with the team at BDC Capital. They were incredibly responsive and flexible, always ready with well considered suggestions and options. We would not hesitate to work with David Wan and the rest of the BDC Capital team on future projects.”
Both financings were arranged by David Wan, Director, Growth & Transition Capital in Edmonton. “Since coming on board, Glenn and other key management have contributed importantly to the company’s drive to become one of the sector’s dominant players in Canada,” affirms Wan. “By successfully executing on all facets of its offerings to become a leading one-stop fire protection service provider, and thanks to its deep relationships with top industry partners and manufacturers, Rocky Mountain Phoenix Inc. has been able to stake out through the years, in spite of the COVID-19 storm, a very strong and unique niche position for itself.”
About Rocky Mountain Phoenix Inc.
Rocky Mountain Phoenix Inc. is a one-stop firefighting equipment sales and service company covering Manitoba, Saskatchewan, Alberta, British Columbia, NWT, Yukon, Nova Scotia and PEI. It is the region’s exclusive dealer of Rosenbauer fire apparatus, is a key distributor of top brands of firefighting equipment and specialty apparatus. It also provides mobile and in-house repair, maintenance and testing services on a wide range of apparatus and equipment. Visit www.rockymountainphoenix.com.
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.