BDC Capital, the investment arm of BDC, which is Canada’s only bank for the exclusive use of entrepreneurs, is pleased to announce investments in excess of $180 million in change-of-ownership business transactions since December 2017. BDC Capital has pledged to invest $900 million over five years and based on the current numbers, is right on track.
When the pledge was announced in 2017 Jerôme Nycz, executive vice president at BDC Capital, said, “This is just the beginning. As many Canadian entrepreneurs expect to acquire another company in the near future, BDC is sending a clear message: we are here to partner with Canada’s business owners looking for growth capital to become champions in their industry.”
Patrick Latour, senior vice president, growth & transition capital at BDC Capital, also remarked at the time, “Our team has been active in addressing ownership transitions; since April 2017, BDC Capital has successfully financed 53 transitions totalling $142 million, which confirms that our offering fills a real need in the market.”
After reaching the $180 million milestone, Latour said in a March 2019 media statement, “Investing in business transitions is one of our core offerings. Our growth & transition capital team specializes in helping the many Canadian entrepreneurs who are planning business transitions or seek to pursue an acquisition. We have a customized and flexible offering with a goal to help build strong Canadian companies with a competitive edge on the regional, national and global stage.”
A few of the recent transactions include:
- David Aplin Group: BDC Capital provided financing and a cash flow loan for the continuation of an intergenerational ownership transfer. This allowed the company to remain a family-owned enterprise.
- Sancton: The fourth-generation family business received BDC Capital financing for an intergenerational transaction and a working capital top up.
- Deslaurier Custom Cabinets: BDC Capital provided financing for the company to be acquired by an outside group.
- Kendrick Equipment: The distributor received BDC Capital financing to acquire a company with exclusive distributor rights.
- BID Group: As one of the largest providers of capital equipment in the industry, BID Group received BDC Capital financing to support an ownership transition, and to support additional growth.
- Polykar Inc.: BDC Capital financing is enabling Industries Polykar’s continued growth, along with a family transition that allows the company to remain in its current headquartered location.
BDC is also excelling internally, having recently accepted an award from Mediacorp Canada Inc. The award is for Canada’s Best Diversity Employers (2019), and recognises employers with exemplary diversity initiatives for women, members of visible minorities, people with disabilities, Indigenous people and the LGBTQ+ community.
“Our talented and diverse team is critical to everything we do as Canada’s only bank devoted exclusively to entrepreneurs,” says Mary Karamanos, chief human resources officer at BDC. “We are happy that our efforts have been recognized in fostering an inclusive environment that attracts top talent and supports entrepreneurship among diversity groups.”
