BDC backs Fuller Industrial’s acquisition of ACR Group

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By Ted Liu

The Business Development Bank of Canada (BDC) has provided $2.2 million in financing to Fuller Industrial Corporation.

BDC’s financing is composed of a $1 million senior debt term loan as well as a $1.2 million mezzanine loan arranged by its Growth and Transition Capital division. These funds are helping finance the acquisition by Fuller of the ACR Group Inc., a manufacturer of high quality wear and impact resistant products.

ACR Group was formed through the merger of Accurate Rubber Products of Richmond, BC and Continental Rubber & Urethane of Nisku, Alberta in 1993, each in business for more than 40 years.

Fuller’s primary goals with this acquisition are to expand into Western Canada and penetrate the oil and gas sector, ACR’s principal market.

Founded in 2004 by CEO Jeff Fuller, Sudbury, Ontario based Fuller Industrial Corporation is a manufacturer and supplier of rubber-lined pipes, fittings and tanks for the mining, forestry and heavy industrial sectors.

“By enabling this acquisition, BDC’s financing has helped Fuller to become what we believe is the largest pipe rubber liner company in North America,” said Jeff Fuller. “Since we already have North America’s most advanced pipe fabrication plant, we think this now makes us the most competitive supplier in Canada and, in many cases, the world.”

BDC decided to fund this transaction as part of Fuller’s Western Canadian expansion strategy. The two companies’ combined will now realize cost synergies which will ultimately make them more competitive and allow for a more diversified client base. Furthermore, the acquisition allows Fuller Industrial to establish a stronger beachhead for their existing Western Canadian division.

The deal was led, on the senior debt side, by Debra-Lynn McKinnon, Senior Account Manager, Acquisitions for Sudbury North and, for the mezzanine part, by Robert Shaw, Director, Growth and Transition Capital for Ottawa West, Eastern and Northern Ontario.

photo credit: ACR Group