HJR Asphalt management bought out
By Andrew Macklin
January 8, 2016 – Two Saskatchewan investment firms have completed the management buyout of H.J.R. Asphalt Partnership.
Golden Opportunities Fund Inc. invested $10.5 million into the management buyout, in syndication with the Westcap MBO Investment LP, which are both funds under the management of Westcap Mgt. Ltd. The total transaction value was $26.3 million to acquire a majority ownership of HJR Asphalt alongside key executive employees.
Founded in 1988, HJR Asphalt is a long-standing Saskatchewan highway construction company and a market leader as one of the Province’s largest paving companies. The company hauls, grades, and compacts road bases, resurfaces or mills existing roads, and paves new asphalt concrete. HJR Asphalt lays approximately 400,000 tonnes of asphalt on roads across Saskatchewan annually.
Since its beginnings, HJR Asphalt has grown from operating one cold-mix mobile asphalt plant to operating five portable asphalt plants, three paving crews, one base crew, a cold-mix crew, and a team of project managers and engineers. The company employs up to 120 people at its peak time with a number of customers including the Saskatchewan Department of Highways and Transportation, rural municipalities and other heavy civil construction companies.
Reg Willick, CEO and one of the key founders of HJR Asphalt, will continue to be involved in the day-to-day operations of the company alongside its highly experienced management team. “Westcap’s investment provides the financial support with the right balance of strategic and operational support as our company continues to exceed and provide innovative and effective solutions in the road construction industry in Saskatchewan.”
“Our investment in HJR Asphalt further reinforces our position in the market as a strong strategic partner involved in the succession plans of Saskatchewan business owners,” commented Grant Kook, president and CEO of Golden. “We value the culture of HJR Asphalt, are very pleased to have it included within our diverse portfolio of successful management buyouts, and look forward to being a part of the Company’s future success and infrastructure development opportunities across our Province.”