OMERS Private Equity ("OPE"), the private equity investment arm of OMERS, has entered into an agreement to sell Maxxam Analytics International Corporation (together with its affiliates, "Maxxam" or the "Company") to France-based public company Bureau Veritas SA ("Bureau Veritas") for an enterprise value of CAD$650 million. The transaction is expected to close in the first quarter of 2014, subject to satisfaction of customary closing conditions.
Founded over 40 years ago, Maxxam has developed into Canada's leader in analytical services and solutions to the energy, environmental, food and DNA industries. Maxxam processes approximately 2.5 million samples and generates in excess of 41 million results annually through the only national network of laboratories. Since OPE acquired Maxxam in September 2008, Maxxam's revenue has grown by 80%, and the Company has continued to strengthen its market position both organically and through strategic acquisitions.
Don Morrison, Senior Managing Director and Co-Head North America, for OPE said, "We are very proud to have been part of the Maxxam success story over the last five years and of our relationship with Jon Hantho, CEO of Maxxam, and his outstanding management team. Maxxam has built what is truly the market leading platform in Canada and the Company is well positioned for continued growth under Bureau Veritas' ownership. This is OPE's third exit during 2013, all of which have achieved exceptional realized returns highlighting the strength of our direct investment program. We wish Jon and his team continued success."
Jon Hantho, CEO of Maxxam, commented, "This transaction marks an exciting new chapter for the Company. We appreciate the support and partnership OMERS Private Equity offered throughout the life of their investment. We look forward to continuing to grow Maxxam with our new partner, Bureau Veritas."
Robert W. Baird & Co. served as financial advisor, and Stikeman Elliott LLP acted as legal counsel.