$33M | Acquisition of construction services company

KitsWest Capital advised a strategic acquirer on the $33M buy-side acquisition and capital raise associated with the purchase of a gravel crushing and construction services company operating across British Columbia and the Yukon. The combined mandate paired buy-side M&A advisory with arrangement of acquisition financing, allowing the acquirer to run target evaluation, valuation, and debt sourcing in parallel rather than sequentially. Coordinated process design protected the acquirer’s ability to close on competitive terms.

The mandate

The engagement covered target evaluation and valuation, normalized earnings and quality of earnings analysis, deal structuring, identification and engagement of qualified Canadian senior lenders with construction and aggregates sector experience, term sheet negotiation against multiple lenders, coordination across legal and tax counsel, and execution through closing of both the share purchase and the acquisition financing facility. Acquisition financing was structured to fit the cash flow profile of the combined business and accommodate near-term equipment investment.

Why this transaction represents our practice

This $33M acquisition is representative of the buy-side M&A advisor and debt and capital advisory work KitsWest performs for owner-managed acquirers in construction services, aggregates, infrastructure, and industrial services across British Columbia, Alberta, Yukon, and Western Canada. Combining buy-side advisory with capital advisory under one engagement reduces friction at closing and lets the acquirer present a single, fully-financed offer to the seller, which materially improves negotiation leverage and execution certainty.