Surepoint Group has been acquired by Wynnchurch Capital

March 2008 — The private shareholders of Surepoint Group have sold the company to Wynnchurch Capital for US$33 million. The transaction was a combination of cash and earnout, which will allow the management team to reap the value of its contribution, both now and for several years following the closing. In addition, the management maintained a minority ownership stake in the organization going forward.

Surepoint Group is one of the fastest growing and most dynamic oilfield services companies in the Peace River Region of Canada, which includes northwestern Alberta and eastern British Columbia. Surepoint is focused on industrial instrumentation and electrical services, utilizing a unique service model formed by seven distinct, yet interrelated companies which provide value-added services and solutions to their customers. The company was experiencing tremendous growth during its 5-year existence, often above 50% a year. In order to realize its full potential, the company needed an equity partner that could help finance the growth opportunities being offered.

Wynnchurch Capital is a leading Chicago-based private equity firm with additional offices in Detroit and Montreal. Wynnchurch focuses on the middle market, and has over US$500 million in private equity fund capital under management.

Our role in the transaction

Oaklins' team in Dallas, USA, advised the seller in this transaction. They introducec approximately twenty potential buyers to the management team, with the shareholders eventually selecting Wynnchurch Capital, a US-based private equity firm with offices and portfolio companies in both the USA and Canada.