Mill City Capital Closes Transaction for Bonnett’s Energy Corp.
Minneapolis, MN -- November 6, 2013 -- Mill City Capital, L.P. ("Mill City"), a private equity firm based in Minneapolis, MN, today announced that it has completed the “going private” acquisition of Bonnett’s Energy Corp. (“Bonnett’s or the Company”) (TSX – BT), a leading oil field services company based in Alberta, Canada.
Bonnett's Energy Corp., founded in 1972, serves customers throughout the Western Canadian Sedimentary Basin, operating a modern fleet of equipment with 11 locations throughout Alberta, British Columbia and Saskatchewan. The Company has built a strong reputation for high quality people, service and safety over its forty year history. Bonnett’s offers its customers critical well services including wireline, production testing, fishing, swabbing and well stimulation services. Bonnett’s existing management team, led by Murray Toews, Chief Executive Officer and Troy Tews, Chief Operating Officer, will continue under Mill City’s ownership.
“Bonnett’s is a market leader in providing a broad range of services to oil and gas customers throughout Western Canada” said Darren Acheson, a Managing Director at Mill City. “Bonnett’s has an outstanding management team and is well positioned for growth as a privately held company. Bonnett’s represents Mill City’s second oil field services investment and our third investment in Canada. We look forward to working with Murray and his team to grow Bonnett’s.”
“My management team and I are pleased to partner with Mill City Capital and the other co-investors” said Murray Toews, Bonnett’s Chief Executive Officer. “This investor group has a reputation for being value added partners in the oil field services industry and we view this next chapter in Bonnett’s history as an exciting opportunity for our company and employees.”
Equity financing was also provided by Babson Capital Management, Bowside Capital, Bond Capital Partners and members of the management team. Senior and subordinated debt financing for the transaction was led by Royal Bank of Canada and RBC Capital Partners, respectively, with participation from ATB Corporate Financial Services and Bond Capital Partners.