Daily News: February 21, 2012

Wynnchurch Capital Takes Stake in NSC Minerals

Wynnchurch Capital, Ltd., a middle-market private equity firm, announced an investment in NSC Minerals Ltd. (NSC). Canada is a key market for Wynnchurch and NSC is Wynnchurch’s eighth Canadian investment.

Canadian Imperial Bank of Commerce as co-lead arranger, joint bookrunner, fronting agent and administrative agent and National Bank of Canada as co-lead arranger, joint bookrunner and syndication agent provided senior debt financing for the transaction. The Manufacturers Life Insurance Company provided mezzanine debt for the transaction.

Based in Saskatoon, Saskatchewan, NSC produces and distributes salt for highway de-icing, industrial, energy, construction, consumer and agricultural applications. The company serves customers across western Canada and the northern U.S. Wynnchurch will support the company’s management team as it pursues geographic expansion opportunities and explore strategic acquisitions. The transaction closed in December 2011.

NSC was co-founded by current CEO Malcolm Leggett more than 20 years ago. Leggett built the business around delivering the highest quality product and unmatched customer service, ensuring that NSC customers receive an uninterrupted supply of the essential road safety product that the company supplies. Frank Hayes, a partner at Wynnchurch, stated, “We are excited to partner with such an excellent management team that shares many of Wynnchurch’s core principles. Malcolm and his team have done a terrific job building a unique customer-centric business and we look forward to partnering with them to support an expanded growth strategy.”

Chris O’Brien, a managing director at Wynnchurch, added, “NSC provides a market-leading, critical safety service to residents throughout Canada and the U.S. We look forward to building upon NSC’s success and helping them to expand their product offering and market reach.”

Morty White, a managing director in Wynnchurch’s Toronto office, commented, “Canada is an important and very attractive market for Wynnchurch. We are excited to add another investment to our Canadian holdings.”

Blake, Cassels & Graydon LLP acted as legal counsel to Wynnchurch.