Indigenous-led partnership helps Kitsaki Management scale through acquisition
When Kitsaki Management was created in Northern Saskatchewan in 1981, its purpose was clear: build economic capacity for the Lac La Ronge Indian Band and generate sustainable wealth for future generations. At a time when First Nations had very limited access to capital, the band’s leadership—led by then‑Chief Miles Venne—made a strategic decision to create an economic development corporation that could participate directly in the regional economy and reinvest profits back into the community.
From the outset, Kitsaki was designed to serve the collective. Profits were retained and reinvested for decades, allowing capital to grow steadily and enabling the organization to acquire, build and manage businesses across multiple sectors. The objective was to foster long-term stability, employment opportunities and financial independence for the band.
“We have more than 12,500 members in our band and I view every one of them as my boss. That’s who I’m accountable to,” says Kitsaki Management CEO Ron Hyggen. “When we make business decisions, I’m thinking about the opportunities that may be created for our community.”
Today, Kitsaki Management manages 12 companies and 21 subsidiaries operating from coast to coast, with activities spanning manufacturing, engineering, environmental services, IT, trucking, catering and mining-related services.
Overcoming structural barriers to Indigenous financing
Kitsaki’s growth did not come easily. Like many Indigenous Nations, the Lac La Ronge Indian Band faced structural barriers to financing for decades. Traditional lenders were often unwilling to provide loans directly to First Nations or their development corporations, forcing communities to rely on partnerships, internal resources or slower organic growth.
As Hyggen explains, access to capital was historically the single greatest constraint. Early investments required patience and discipline. For many years, the band chose not to take distributions at all, reinvesting every dollar back into the corporation to build a stronger financial base.
This long-term approach allowed Kitsaki to gradually expand its balance sheet, professionalize governance and develop a disciplined acquisition “playbook.”
The Fab Rite acquisition: Scaling for the future
Kitsaki’s recent acquisition of Fab Rite Services, a steel fabrication company based in Cranbrook and Sparwood, B.C., represents a significant milestone in their growth strategy.
“Fab Rite is complementary to one of our existing businesses, AGI Envirotank, located in Saskatchewan. There are synergies between the two companies, so the acquisition made a lot of sense,” Hyggen says.
“The trouble was it was a larger deal than Kitsaki has ever done.”
Rather than compromising its capital position, Kitsaki sought a structure that would allow the acquisition to be carried out at the operating‑company level, without collateralizing the parent organization or the community’s broader assets.
The role of the BDC–FNBC partnership
That flexibility became possible through a $100 million partnership between BDC and the First Nations Bank of Canada (FNBC). Under this model, FNBC manages the loan and underwriting while BDC guarantees the loan up to a certain value. This frees up capital for FNBC to provide even more loans to other Indigenous businesses.
For Kitsaki, the process was seamless and matched their specific needs, including a 10-year term and security held against the company being acquired rather than the parent organization.
“A lot of traditional banks would prefer to go after our balance sheet,” Hyggen explains.
“What makes this interesting as a community is it shows we’re able to do more as an Indigenous Nation moving forward. In the past we’d maxed out at $5M deals, we’d been pushing that out over the past few years as a safe place to play.”
The final financing structure involved Kitsaki providing one-third of the capital while FNBC provided a loan for the remaining two-thirds.
Programs like this really support reconciliation and getting deals done. As large as Kitsaki has grown since 1981, we still needed support on a deal like this
Ron Hyggen
CEO, Kitsaki Management
The power of own source revenue
The acquisition of Fab‑Rite is a means to strengthen Kitsaki’s ability to generate own‑source revenue, which is income controlled by the nation and reinvested according to its own priorities. This revenue gives the community the power to solve issues like housing, education and health care without external direction or conditions.
“Our money doesn’t go back to one specific shareholder or person, it goes back to the community,” says Hyggen.
Kitsaki follows a “buy and hold” philosophy, much like private equity but without the intention to sell. Their focus is on building businesses that last for generations. Success is measured by jobs for community members and services provided to the Nation.
Building a playbook for success
Kitsaki’s journey has not always been easy. The organization has even had to dismantle companies that weren't meeting goals. However, these experiences have allowed them to develop a playbook that they’re willing to share with other nations.
A key part of that playbook is ensuring employees feel valued during a transition. During the Fab Rite acquisition, Kitsaki focused on communicating with the existing team to build confidence and ensure no one was lost in the process.
“Walking into a deal like this may mean employees are upset, nervous or want to leave. We reassure them that we don’t want to lose anyone. We want to make it a stronger company that’s better for them and their families,” says Hyggen.
Resilience and shared leadership
With Fab‑Rite now part of its portfolio, Kitsaki is better positioned to diversify geographically and sectorally, reducing exposure to regional or commodity‑driven cycles. The acquisition strengthens its manufacturing footprint in Western Canada while reinforcing the financial foundation needed for future opportunities.
More broadly, Kitsaki’s success proves that when Indigenous vision is backed by the right financial tools, the benefits can ripple through entire communities. The FNBC/BDC partnership provides a roadmap for First Nations to build long-term stability and economic power on their own terms. By bridging the gap between potential and capital, these initiatives ensure that today’s growth creates a solid foundation for generations to come. They also ensure that Indigenous nations can pursue economic development on their own terms—building prosperity that remains rooted in community, accountability, and long-term stewardship.
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Learn more about how BDC and FNBC are partnering to support Indigenous business acquisitions.
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