Mill City Capital has completed the take private acquisition of Bonnett’s Energy Corp., an oil field services company. Bonnett’s represents Mill City’s second oil field services investment and its third investment in Canada.
Bonnett’s Energy provides wireline, production testing, fishing, swabbing and well stimulation services to customers throughout the Western Canadian Sedimentary Basin. The company was founded in 1972 and has 11 locations throughout Alberta, British Columbia and Saskatchewan. Bonnett’s is headquartered in Calgary (www.bonnettsenergy.com).
Bonnett’s existing management team, led by Murray Toews, Chief Executive Officer and Troy Tews, Chief Operating Officer, will continue under Mill City’s ownership.
“Bonnett’s is a market leader in providing a broad range of services to oil and gas customers throughout Western Canada” said Darren Acheson, a Managing Director at Mill City. “Bonnett’s has an outstanding management team and is well positioned for growth as a privately held company. We look forward to working with Murray Toews and his team to grow Bonnett’s.”
In addition to the equity provided by Mill City Capital, additional equity financing was provided by Babson Capital Management, Bowside Capital, Bond Capital Partners and members of the Bonnett’s management team.
“My management team and I are pleased to partner with Mill City Capital and the other co-investors” said Murray Toews, Bonnett’s Chief Executive Officer. “This investor group has a reputation for being value added partners in the oil field services industry and we view this next chapter in Bonnett’s history as an exciting opportunity for our company and employees.”
Senior and subordinated debt financing for the transaction was led by Royal Bank of Canada and RBC Capital Partners, respectively, with participation from ATB Corporate Financial Services and Bond Capital Partners.
Mill City makes control investments in industrial and consumer businesses which have EBITDAs of $7.5 million to $25 million and are located in the Midwestern United States and parts of Canada. The firm is based in Minneapolis (www.millcitycapital.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-15-13
