The Selling Company: The Surepoint Group (Surepoint) is one of the fastest growing and most dynamic oilfield services companies in the Peace River Region of Canada, which includes northwestern Alberta and eastern British Columbia. Surepoint is focused on industrial instrumentation and electrical services, utilizing a unique service model formed by seven interrelated companies which provide value-added services and solutions to their customers. Surepoint employs in excess of 200 people in four cities, and its annual revenues exceed $50 million.
Why the company was sold: Surepoint was experiencing tremendous growth during its five-year existence, often above 50% a year. In order to realize its full potential, the company needed an equity partner that could help finance the growth opportunities being offered.
Capital Alliance’s Performance: The shareholders wanted to look beyond Canada in reaching acquirers and investors. Capital Alliance was able to introduce approximately twenty potential buyers to the management team, with the shareholders eventually selecting Wynnchurch Capital, a U.S. based private equity firm with offices and portfolio companies in both the U.S. and Canada. We took the time to learn the seller’s operations and main objectives, which was key to finding the right buyer.
Terms of the Transaction: The transaction was a combination of cash and earn-out, which will allow the management team to reap the value of its contribution, both now and for several years following the closing. In addition, management maintained a minority ownership stake in the organization going forward.
The Acquiring Company: Wynnchurch Capital is a leading Chicago-based private equity firm with additional offices in Detroit and Montreal. Wynnchurch focuses on the middle market, and has over $500 million in private equity fund capital under management.