Plumbing and HVAC specialist Finan Home Service of London, Ont. acquired Millcreek Plumbing & Mechanical of St. Thomas, Ont. with $750,000 from BDC Capital
LONDON, Ontario, October 24, 2019—BDC Capital’s Growth and Transition Capital division provided financing of $750,000 to Finan Home Service of London, Ontario for its acquisition earlier this year of Millcreek Plumbing & Mechanical of nearby St. Thomas. Both companies provide plumbing and heating, ventilation and air-conditioning (HVAC) installation and maintenance services, with Finan concentrating on the residential market and Millcreek on the commercial and industrial sectors. They have been in business respectively since 1994 and 1987.
BDC Capital’s non-dilutive financing took the form of a mezzanine loan with personalized and flexible terms. It complements investments made by both the purchaser and the vendor in this transaction. The acquisition of Millcreek by Finan is part of a strategy developed with the help of David Simpson of the Ivey Business School to purchase a number of similar businesses in the London area from owner-operators looking to retire. CEO John Finan’s objective is to reach total sales of more than 10 million dollars across all enterprises over the coming years. He intends to introduce in the businesses he acquires many of the innovations which have contributed to the success of Finan Home Service, particularly on the customer relations and operational fronts.
“With many contractors at the age of retirement, we have been looking to acquire those select businesses that will help us grow our market share and earnings while maintaining a first-class level of customer service and a skilled workforce,” says John Finan, CEO of Finan Home Service. “The help of BDC Capital has been invaluable in helping us meet our objectives while helping to provide value for the contractors looking to sell.”
This transaction was led by Jeffrey Hill, Director, Growth and Transition Capital for Southwestern Ontario at BDC Capital. “John Finan has demonstrated his management skills and business acumen while bringing a fresh approach to a mature industry,” says Hill. “He and David Simpson have developed a sound growth strategy based on acquisitions, whose deployment we look forward to continuing to support.”
About Finan Home Service
Since its beginnings in 1994 Finan Home Service has charted a path of growth in the contracting and home service business. This has been accomplished through a single-minded focus on hiring, training, compensating the very best technicians in the field and matching them up with the clients who demand the very best in customer service.
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. Visit bdc.ca/capital.
—30—
—30—