M&A Deal Summary

River Associates and PNC Mezzanine Capital Acquire Hoskin Scientific

On January 12, 2022, private equity firm River Associates and mezzanine finance firm PNC Mezzanine Capital acquired distribution company Hoskin Scientific

Acquisition Highlights
  • This is River Associates’ 2nd and PNC Mezzanine Capital’s 9th transaction in the Distribution sector.
  • This is River Associates’ 2nd and PNC Mezzanine Capital’s 3rd transaction in Canada.
  • This is River Associates’ 1st and PNC Mezzanine Capital’s 2nd transaction in British Columbia.

M&A Deal Summary

Date 2022-01-12
Target Hoskin Scientific
Sector Distribution
Buyer(s) River Associates
PNC Mezzanine Capital
Deal Type Buyout (LBO, MBO, MBI)
Advisor(s) KPMG Corporate Finance LLC (Financial)
Stikeman Elliott (Legal)

Target

Hoskin Scientific

Burnaby, British Columbia, Canada
Hoskin Scientific is a value-added distributor of essential test, measurement, and monitoring equipment serving the environmental, geotechnical, and processing markets throughout Canada. Hoskin Scientific was founded in 1946 and is based in Burnaby, British Columbia.

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Buyer(S) 2

Buyer

River Associates

Chattanooga, Tennessee, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

River Associates is a private equity firm that targets buyouts, divestitures and recapitalizations of lower middle-market companies. River looks for investments in manufacturing, high-margin distribution, industrial services and 'non-faddish' retail companies. The Firm focuses on companies located in the US and Canada with minimum sales of $15 million and EBITDA of $3 to $12 million. River Associates avoids investing in heavily regulated industries as well as start-up, high-technology, commodity or natural resource companies. River Associates was formed in 1989 and is based in Chattanooga, Tennessee.


DEAL STATS #
Overall 34 of 38
Sector (Distribution) 2 of 2
Type (Buyout (LBO, MBO, MBI)) 18 of 22
State (British Columbia) 1 of 1
Country (Canada) 2 of 2
Year (2022) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-04-01 Wheat Montana

Three Forks, Montana, United States

Wheat Montana is a provider of premium, branded mill, and bakery products. The Company offers a variety of non-GMO, chemical-free grains and whole grain flours, mixes, and fresh and frozen bread products to retail and wholesale customers throughout the United States. Wheat Montana is based in Three Forks, Montana.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-03-07 TopDown

North Hollywood, California, United States

TopDown is a designer, manufacturer, and supplier of automotive aftermarket products. TopDown was founded in 1979 and is based in North Hollywood, California.

Sell -
Buyer

PNC Mezzanine Capital

Pittsburgh, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

PNC Mezzanine Capital is the subordinated debt investing arm of PNC Bank. PNC Mezzanine looks to provide $10 to $50 million of junior capital to middle-market companies in a variety of industries. Prospective companies generally have revenues of $20 million and EBITDA greater than $4 million. Broad sectors of interest include niche manufacturing, value-added distribution, and business or consumer services. PNC will not invest in early-stage or technology-driven businesses; real estate, commodity-based or capital-intensive companies; businesses with high customer or vendor concentration; or declining businesses. PNC Mezzanine was formed in 1989 and is based in Pittsburgh, Pennsylvania.


DEAL STATS #
Overall 72 of 77
Sector (Distribution) 9 of 9
Type (Buyout (LBO, MBO, MBI)) 36 of 38
State (British Columbia) 2 of 2
Country (Canada) 3 of 3
Year (2022) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-06 SemiTorr

Tualatin, Oregon, United States

SemiTorr Group is a sales and distribution company for gas and fluid handling systems and components. Focused on three major market segments high purity, sanitary and industrial – its products include process equipment, pumps, tubing, hoses, fittings, valves, filtration and instrumentation. Semitorr Group was founded in 1988 and is based in Tualatin, Oregon.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-05-04 Polycor

Quebec, Quebec, Canada

Polycor is a dimensional stone company in North America, operating a network of quarries, manufacturing facilities, and retail stores. Polycor crafts custom stone blocks, slabs, tiles, mosaics, architectural stone, curbs, and landscaping products sold to diverse end markets. Polycor was founded in 1987 and is based in Quebec City.

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