M&A Deal Summary

Penfund, Ironbridge Equity Partners and Signal Hill Equity Partners Acquire Gesco

On February 5, 2007, mezzanine finance firm Penfund, private equity firm Ironbridge Equity Partners and private equity firm Signal Hill Equity Partners acquired distribution company Gesco

Acquisition Highlights
  • This is Penfund’s 2nd, Ironbridge Equity Partners’ 1st and Signal Hill Equity Partners’ 1st transaction in the Distribution sector.
  • This is Penfund’s 4th, Ironbridge Equity Partners’ 2nd and Signal Hill Equity Partners’ 2nd transaction in Canada.
  • This is Penfund’s 3rd, Ironbridge Equity Partners’ 1st and Signal Hill Equity Partners’ 1st transaction in Ontario.
Investment Fate
  • Gesco was sold to a consortium of financial buyers in 2013.
  • Gesco was sold to a consortium of financial buyers in 2023.

M&A Deal Summary

Date 2007-02-05
Target Gesco
Sector Distribution
Buyer(s) Penfund
Ironbridge Equity Partners
Signal Hill Equity Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

Gesco

Brampton, Ontario, Canada
Gesco is a provider of proprietary branded products and programs across all flooring categories and geographies, predominantly to the independent retail flooring channel. Gesco was founded in 1938 and is based in Brampton, Ontario.

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Buyer(S) 3

Buyer

Penfund

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1979
PE ASSETS 2.7B CAD
Size Large
Type Sector Agnostic
DESCRIPTION

Penfund is a private investment firm that provides equity, junior capital, and alternative financing to Canadian-based middle-market companies with EBITDA of at least C$20 million. Penfund can commit up to C$225 million per transaction. Penfund does not have any industry preferences and its investments are generally used to support growth needs, recapitalization, shareholder liquidity, acquisitions, and buyouts. Penfund was formed in 1979 and is based in Toronto.


DEAL STATS #
Overall 4 of 28
Sector (Distribution) 2 of 7
Type (Buyout (LBO, MBO, MBI)) 4 of 8
State (Ontario) 3 of 10
Country (Canada) 4 of 14
Year (2007) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-01 Bluewave Energy

Dartmouth, Nova Scotia, Canada

Bluewave Energy operates as a petroleum delivery company in Canada. It delivers furnace oil, diesel oil, dyed diesel oil, gasoline, Shell lubricants, marine gas oil, and heavy fuel oil to commercial and residential customers, as well as asphalt to highway, street, and airport construction in Western Canada. The company also provides equipment service plans, heating equipment, and oil spill protection, as well as heating, air conditioning, and fuel storage equipment services and finance.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-08-15 Pet Valu

Markham, Ontario, Canada

Pet Valu is Canada's leading retailer of pet food and pet-related supplies with over 600 corporate-owned or franchised locations across the country. For more than 40 years, Pet Valu has earned the trust and loyalty of pet parents by offering knowledgeable customer service, a premium product offering and engaging in-store services. Pet Valu's neighbourhood stores offer more than 7,000 competitively-priced products, including a broad assortment of premium, super premium, holistic and award-winning proprietary brands. Pet Valu was incorporated in 1976 and is based in Markham, Ontario.

Sell -
Buyer

Ironbridge Equity Partners

Toronto, Ontario, Canada

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 700M CAD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Ironbridge Equity Partners (IEP) is a private equity investor in middle-market Canadian companies. IEP targets profitable companies with motivated management, 'history of positive earnings strong competitive positions within industry niche, and opportunities growth (organic or through acquisitions). IEP looks to invest at least $15 million in transactions valued up to $50 million. Areas of interest include manufacturing, distribution, consumer products/services, and business services. The Firm will not invest in real estate, natural resources, and technology. Ironbridge Equity Partners was formed in 2005 and is based in Toronto.


DEAL STATS #
Overall 2 of 29
Sector (Distribution) 1 of 4
Type (Buyout (LBO, MBO, MBI)) 2 of 16
State (Ontario) 1 of 13
Country (Canada) 2 of 28
Year (2007) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-02 Orbit Garant

Val-d'Or, Quebec, Canada

Orbit Garant is a Canadian-based drilling companies, providing both underground and surface drilling services in Canada and internationally through its 116 drills . Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. Orbit Garant was incorporated in 1965 and is based in Val-d'Or, Canada.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-06-26 Orbit Garant

Val-d'Or, Quebec, Canada

Orbit Garant is a Canadian-based drilling companies, providing both underground and surface drilling services in Canada and internationally through its 116 drills . Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. Orbit Garant was incorporated in 1965 and is based in Val-d'Or, Canada.

Sell -
Buyer

Signal Hill Equity Partners

Toronto, Ontario, Canada

Investor Investor Investor


Category Private Equity Firm
Founded 2007
PE ASSETS 300M CAD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Signal Hill Equity Partners, Inc. (SHEP) is a Canadian investor in mid-sized companies. SHEP focuses on businesses led by strong management with the potential to improve financial performance, grow market share or lead industry consolidation. The Firm looks to invests between $10 and $30 million of equity investment; and an enterprise value of between $15 and $75 million. Areas of interests include manufacturing, distribution, consumer products and business services. Signal Hill Equity Partners, Inc. was formed in 2007 and is based in Toronto.


DEAL STATS #
Overall 2 of 10
Sector (Distribution) 1 of 1
Type (Buyout (LBO, MBO, MBI)) 2 of 6
State (Ontario) 1 of 4
Country (Canada) 2 of 9
Year (2007) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-02 Orbit Garant

Val-d'Or, Quebec, Canada

Orbit Garant is a Canadian-based drilling companies, providing both underground and surface drilling services in Canada and internationally through its 116 drills . Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. Orbit Garant was incorporated in 1965 and is based in Val-d'Or, Canada.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-06-26 Orbit Garant

Val-d'Or, Quebec, Canada

Orbit Garant is a Canadian-based drilling companies, providing both underground and surface drilling services in Canada and internationally through its 116 drills . Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. Orbit Garant was incorporated in 1965 and is based in Val-d'Or, Canada.

Sell -