Lynx Equity is pleased to announce the synergistic acquisition of Yellowhead Wood Products Inc.
August 17, 2021
August 17, 2021 – Toronto, ON / Edson, AB – Lynx Equity Limited is pleased to announce the acquisition of Yellowhead Wood Products Inc. (“the Company” or “YWP”), a wood product re-manufacturer that provides secondary lumber products to Western Canada’s forestry industry. Over the years, the Company has built strong customer relationships and a substantial reputation in the industry by leveraging its large size to become a one-stop shop that delivers to its customers with little to no notice.
“Using our experience from Winfield, Lynx’s only other wood re-manufacturing business, we had a good understanding of what makes these businesses successful. YWP possesses many, if not all, of the characteristics that we were looking for in a company operating in this industry. Craig, Ian, and Nathan run a very impressive operation at YWP and we are excited that they have committed to stay on long-term in either full-time or advisory positions.” said Eric Persi, Vice President of Mergers and Acquisitions.
The acquisition of YWP will bolster Lynx’s presence in the wood re-manufacturing market; a space that Lynx has already had success in with its subsidiary company, Winfield Wood and Lath. Lynx has been able to leverage this prior knowledge throughout the due diligence process and will continue to do so by providing operational support and seeking synergistic opportunities for the purpose of sharing the most effective business practices.
“Our sincere thanks to MNP Corporate Finance Inc., who led the process of finding a buyer for YWP. Lynx Equity was the right choice for the shareholders and employees. Lynx agreed to continue our Employee Profit Share program, as well as to provide professional support and the long-term perspective needed for further growth and development. We look forward to the association with Winfield Wood and Lath, who have long been an admired competitor. Our thanks to Witten LLP for their experienced guidance and sell-side legal services, and to Gerald Joly for his tax and accounting advice.” said Craig Corser, President of YWP.
The transaction was facilitated with buy-side legal and accounting services provided by Minden Gross LLP and Deloitte Canada respectively. BDC Capital’s Growth and Transition Capital division provided $3.5 million dollars in acquisition financing.
The capital provided by BDC Capital is patient, personalized, and non-dilutive. The transaction was led by Mark Lunick, Director of Growth & Transition Capital, for Southwestern Ontario. “Yellowhead Wood Products Inc. is a dynamic and long-established company that has been experiencing significant growth due to the strength of the construction markets in Canada,” says Lunick. “We see an excellent alignment between the company’s strong management team and Lynx, and we think this synergy will be key as they assess further areas of potential growth.”
Lynx’s most recent acquisitions include Fairfield, NJ’s Shehadi Commercial Flooring, acquired by Lynx in May 2021, Aarhus, DNK’s Yding Gruppen A/S, acquired in March 2021, and Portland, OR’s DeBenedetto’s Commercial Flooring LLC, acquired in 2020. As mentioned, YWP will join Winfield Wood and Lath in Lynx’s wood re-manufacturing portfolio. Lynx continues to pursue a variety of acquisition opportunities in North America and Europe.
About Yellowhead Wood Products Inc.
With roots reaching back to 1919, and over 30 years in business as a secondary wood manufacturer, YWP has become a dominant provider of high-quality products for the Western Canadian forestry industry. Reworking already manufactured wood products into industrial products and consumables, the Company’s main product lines are kiln sticks, dunnage, and lath. These products are used by sawmills and other forestry-backed businesses for packaging finished lumber and stacking lumber for kiln drying. The Company continues to strive to make high quality products while minimizing waste and caring for the environment.
For further information on Yellowhead, please visit www.yellowheadwood.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.
For further information on BDC Capital, please visit www.bdc.ca/capital
About Lynx Equity Limited
With sales in excess of $500M CAD, Lynx Equity Limited is a diversified Toronto-based private equity firm focused on acquiring small and medium-sized businesses from owners looking to retire or seeking strategic opportunities. Lynx targets acquisitions of companies with EBITDA between $750k – $2.5M USD and utilizes a buy and hold strategy.
For further information on Lynx Equity, please visit www.lynxequity.com
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