Chicago-based Wynnchurch Capital LLC acquired select assets of polyethylene pipe producer Uponor Infra Oy, which is based Mississauga, Ontario, for C$62.5 million (US$47.4 million) and renamed the new entity Infra Pipe Solutions Ltd.
The cash deal includes manufacturing plants in Mississauga; Huntsville, Ontario; and Saskatoon, Saskatchewan. The facilities produce large-diameter, high density polyethylene pipe for water infrastructure, oil and gas distribution, mining and industrial uses.
Uponor Infra posted sales of about C$120 million (US$90.9 million) in 2017. A joint venture of Uponor Oyj and the KWH Group, the business has about 150 employees.
Jyri Luomakoski, president and CEO of Uponor, said it was time to sell the infrastructure unit. He called the deal with Wynnchurch a "logical step" in a news release that pointed to other Uponor divestments in 2015.
Sandeep Dhillon, who was president of Uponor Infra Oy for five years, is now IPS's CEO.
"With the opportunities we have before us, this is a very exciting time for the company," Dhillon said in the release. "Wynnchurch has the resources and expertise to take our company into a new phase of expansion as we continue to help our customers grow."
Dhillon's team of former Uponor managers and all employees are transferring to IPS.
"We believe that the company's industry-leading product quality, availability and service, combined with Wynnchurch's experience, position IPS to be a strong platform," Brian Crumbaugh, managing director at Wynnchurch, said in the release.
IPS marks Wynnchurch's 11th platform investment in Canada and the second Canadian investment in 2018. The firm is investing from its $1.3 billion Fund IV. Other recent acquisitions include uniform supplier Logistik Unicorp Inc.; quick-oil change business Team Car Care; and brass fittings manufacturer Anderson Metals.
