QUEBEC—A specialized wear parts and rubber manufacturer is ramping up its growth efforts after being acquired by a private equity firm.
NCP Capital Partners acquired a majority stake of Beauce Caoutchouc Inc. (BCI Rubber) and its subsidiary UCB Inc. on Sept. 30. BCI Rubber specializes in the design and manufacture of rubber- and silicone-based wear parts for several sectors, including mining, agricultural and municipal spaces.
Details of the transaction were not disclosed.
The transaction, which had been a few months in the making, was finalized to help the company take the next step in its growth to become more of a services and solution provider. Since being established in 1987, BCI Rubber was best known as a parts provider, said Eric Champagne, part-owner and general manager for the company.
BCI Rubber traditionally has served as a subcontractor for the manufacture of wear parts. It designs and manufactures under the Flexarmor brand and has provided a wide range of wear products for the mining and aggregate industry.
BCI's products typically have been used to extend the life of specialized and high-end machinery. That will remain a big part of the company's revenue, but the growth is designed to position BCI Rubber as a technical expert as well.
"Our growth will continue to be as a leader for wear solutions," Champagne said. He indicated that, as part of NCP Capital Partners, the company will consider acquisitions that support growth. Champagne will continue to run the BCI division of NCP Capital.
The BCI Rubber brand will remain in place, and all of its 70-plus employees will join the NCP Capital family. Champagne expects that its employee count will more than double over the next five years, with specific hires expected in operations, engineering and similar positions. The BCI team likely is to remain in Quebec, but may move to NCP Capital's location across town.
"We are pleased that this transaction has been completed in collaboration with BCI management. While maintaining its current operations, BCI will be at the center of a comprehensive expansion and consolidation plan aimed at creating a major wear products and solutions company for the primary and industrial sectors," said Mario Jacob, head of Private Equity at NCP.
Champagne expects a smooth transition for existing customers and said that the extra manpower and experience will benefit them with additional options and consulting services. On a corporate level, the goal is to expand the company's wear profile throughout North America and, eventually, to a global level.
"We want to build a stronger regional presence, and then we will look more globally from there," Champagne said. "There will be an effort to build capacity for any global markets where we look to expand.
"The experience and expertise of the NCP team brings significant added value to our existing dynamic management team," he said. "This partnership will accelerate our established strategic plan and will support a very bright future for BCI and our team."
NCP Capital Partners is a multi-family office serving institutions, companies and private wealth. As part of its private equity investment strategy, NCP publicly has sought the acquisition of companies in targeted industries. It defines itself as a discretionary portfolio manager, exempt market dealer and fund manager regulated by the securities regulators of the provinces of Quebec, Ontario, Alberta and British Columbia.
"We are proud to offer our Family Office clients access to this high-performing asset class through private placement opportunities like this, that is supported by institutional grade analysis, due diligence and execution processes," Christian Gagnon, chief investment officer at NCP, said in a statement.