CPE News (12.5.2022) – PFM Capital Inc., alongside co-investors BDC Capital and Roynat Equity Partners, has acquired a majority interest in Sexton Family of Companies.
Sexton Investments will retain a portion of its ownership interest.
Sexton Family of Companies operates five business units: (i) Sexton Group, a Canadian building materials buying group (ii) Kenroc, one of Western Canada’s largest gypsum specialty distribution companies (iii) Builders Choice Products, a specialty tool distribution company, (iv) Sexton Transport, a long haul trucking company and (v) Tage Davidsen Drywall Supplies, a gypsum dealer serving contractors in Calgary and surrounding areas.
photo credit: PFM, Sexton Family of Companies
PFM, BDC Capital and Roynat Acquire Sexton Family of Companies, Positioning SFOC for Growth
December 5th, 2022
Regina, Saskatchewan – PFM Capital Inc. (“PFM”) is pleased to announce that it has acquired a majority interest in Sexton Family of Companies (“SFOC”) alongside co-investors BDC Capital (“BDC”) and Roynat Equity Partners (“Roynat”). Current SFOC Chair Brian Kusisto will remain with the company as a board member and Sexton Investments will retain a portion of its ownership interest.
SFOC is a distribution, buying group and transportation business in the building materials industry and is comprised of five businesses including Sexton Group, Kenroc Building Materials, Builders Choice Products, Sexton Transport and Tage Davidsen Drywall Supplies. Kenroc started in 1967 from humble beginnings with one location in Regina, SK. Since then, SFOC has flourished into a dynamic and resilient combination of businesses that employ over 260 talented people that serve customers and members throughout Canada.
This transaction will position SFOC for its next stage of growth and allow SFOC to preserve the culture, values and traditions that have made it prosper over 50 years.
“This is an exciting day for SFOC. The acquisition is a testament to the hard-work and dedication of everyone at SFOC and demonstrates the successful execution of our strategy for 55 years.” said Brian Kusisto, Chair of SFOC.
“SFOC is a classic Saskatchewan success story. A story that now includes customers and members across Canada. We are honored to become part of the SFOC legacy. We look forward to working with the SFOC team as they write a new chapter in their history.” said Jeff Linner, Chief Investment Officer at PFM.
“We are excited to partner with SFOC as it has a proven record of success and a bright future. This transaction allows SFOC to continue to execute its growth strategy nationally and further strengthen its business.” said Jeremy Billan, Partner, Growth Equity Partners at BDC Capital.
“SFOC has grown into a market leader in the building materials industry. Its combination of five businesses allows SFOC to provide customers and members with unmatched service.” said Matt Flynn, Managing Director, Western Canada at Roynat Equity Partners.
About Sexton Family of Companies
Sexton Family of Companies operates five business units: (i) Sexton Group, a Canadian building materials buying group (ii) Kenroc, one of Western Canada’s largest gypsum specialty distribution companies (iii) Builders Choice Products, a specialty tool distribution company, (iv) Sexton Transport, a long haul trucking company and (v) Tage Davidsen Drywall Supplies, a gypsum dealer serving contractors in Calgary and surrounding areas. Kenroc was established in 1967 in Regina, Saskatchewan by the late Ken Sexton. For more information, please visit www.kenroc.com and www.sextongroup.com.
About PFM Capital
PFM Capital Inc. is Saskatchewan’s largest private equity investment firm with over $750 million in assets under management across several funds. Based in Regina, Saskatchewan, PFM’s niche focus allows investors to benefit from the Prairies’ economic strengths by taking advantage of the firm’s established local contact network and long-term track record. PFM is employee-owned and has been managing private equity and venture capital funds since 1993. For more information, please visit www.pfm.ca.
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 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. For more information, please visit www.bdc.ca/capital.
About Roynat Equity Partners
Roynat Equity Partners facilitates growth and creates wealth in established mid-market private companies by providing patient capital, advice and contact networks to Canadian entrepreneurs. With offices across Canada, Roynat Equity Partners is dedicated to helping mid-market companies grow and achieve their business goals. Flexible investment structures are tailored to the needs of partners and include common equity, preferred equity, and convertible debt. Roynat Equity Partners is a division of Roynat Capital Inc. which is a wholly owned subsidiary of Scotiabank. For more information, please visit www.roynat.com.