Richmond-based ACR Systems to be Acquired by Fuller Industrial Corp - BDC Provides $2.2M Acquisition FinancingFriday, November 10, 2017
BDC provides financing of $2.2 million to Fuller Industrial Corporation for acquisition of Richmond-based ACR Systems
Surrey, BC, November 10, 2017--(T-Net)--Fuller Industrial, a supplier of rubber lining, pressure piping systems, and corrosion and abrasion resistant products, based in Sudbury, Ontario,announced it is acquiring Richmond, BC-based ACR Group Inc.
ACR specializes in providing high quality solutions to customer problems involving wear, impact, abrasion, temperature or chemical concerns.
The Business Development Bank of Canada (BDC) reported in a seperate press release that it has provided $2.2 million in financing to Fuller Industrial Corporation of Sudbury, Ontario to help facilitate the acquisition.
Founded in 2004 by CEO Jeff Fuller, Fuller Industrial Corp. is a manufacturer and supplier of rubber-lined pipes, fittings and tanks for the mining, forestry and heavy industrial sectors.
BDC's financing is composed of a $1 million senior debt term loan as well as a $1.2 million mezzanine loan arranged by its Growth and Transition Capital division.
These funds are helping finance the acquisition by Fuller of the ACR Group, which has plants in British Columbia and Alberta. Fuller's primary goals with this acquisition are to expand into Western Canada and penetrate the oil and gas sector, ACR's principal market.
“By enabling this acquisition, BDC's financing has helped Fuller to become what we believe is the largest pipe rubber liner company in North America,” said Jeff Fuller, Fuller Industrial's CEO. “Since we already have North America's most advanced pipe fabrication plant, we think this now makes us the most competitive supplier in Canada and, in many cases, the world.”
BDC decided to fund this transaction as part of Fuller's Western Canadian expansion strategy.
The two companies' combined will now realize cost synergies which will ultimately make them more competitive and allow for a more diversified client base. Furthermore, the acquisition allows Fuller Industrial to establish a stronger beachhead for their existing Western Canadian division.
The deal was led at BDC, on the senior debt side, by Debra-Lynn McKinnon, Senior Account Manager, Acquisitions for Sudbury North and, for the mezzanine part, by Robert Shaw, Director, Growth and Transition Capital for Ottawa West, Eastern and Northern Ontario.
About ACR Group
ACR Group Inc. was created with the merger of Accurate Rubber Products in Richmond BC Canada with Continental Rubber & Urethane in Nisku Alberta Canada in 1993, each in business for more than 40 years.
The merger created a dynamic company specializing in wear related products to all areas of heavy industry and manufacturing.
In the years since ACR has brought other companies and brands into the group and has continued to develop new products to continually provide our customers with innovative solutions to wear related problems.
At ACR we take great pride in providing products of the highest quality with on time delivery at competitive prices.
With well known brand names like Magna-Skin™, Dissipator™ and Chimo, ACR continues to expand our wear product offerings to help our customers improve their production and lower maintenance costs. ACR is a full service rubber & urethane company with the capability to handle projects of any size.
ACR has manufacturing plants in Richmond BC and Nisku (Edmonton), Alberta with over 100,000 square feet of manufacturing facilities.
ACR is a quality manufacturer of rubber and urethane products for all areas of industry. Our goal is to provide our customers with products & services that meet or exceed their expectations for quality. Our commitment is to fully understand and fully service our customers' needs for rubber and urethane products. Our mission is to be there when our customers need us with the right product, at the right time, at the right price.
Our Capabilities Include:
Custom compound engineering utilizing in-house milling equipment & facilities. Full product & compound testing using our on-site lab and professionals. Project input to assist in product development and improvement through design ideas and material alterations. Recognized excellence in quality and adherence to standards. ACR is proud to be ISO 9001-2008 certified.
About Fuller Industrial Corporation
Fuller is a leading Canadian manufacturer and supplier of rubber lined piped, fittings and tanks. The business is a fully integrated operation with the ability to supply, fabricate, blast, line, paint and package all in one location. The primary services include fabrication, protective coatings and repair/maintenance work for the mining, forestry and heavy industrial segments. The company has established an expertise in formulating the correct blend of compounds in the rubber to satisfy the variety of uses for the lined piping. The rubber lining the company offers results in less corrosion as the rubber resists erosion and abrasion, resulting in a longer useful life for the pipe.
BDC is the only bank devoted exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 118 business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital and flexible growth and transition capital solutions. To find out more, visit bdc.ca.
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