Chemical manufacturing

BDC contributed $25 million to a financing package for a management buy-out of a company in the chemical manufacturing industry.  This 50-year-old company has plants in Quebec, Ontario, Alberta, British Columbia and Australia and sales of over $300 million.   The company’s first owner had decided to retire and wanted to sell his shares to the current management team. 

Thanks to the close collaboration of BDC and a number of other financial institutions all working together, the company avoided being sold to foreign investors.  The package includes management investment, a balance of sale, a $50 million term debt shared with another lender, a new line of credit of $50 million shared by two banks, and $25 million subordinated financing from an investment firm.