Chicago-based private equity firm Wynnchurch Capital Ltd. has done its first deal in Canada since the spring of 2008, teaming up with the management of Pro-Fab Inc. in a buyout of the company.
Vallee-Jonction, Que.-based Pro-Fab, led by CEO André Turcotte, bills itself as the leading seller of modular homes in Quebec, though its sales also stretch into the northeastern U.S.
The modular home business took a beating as a result of the housing slump and financial crisis, and a number of companies wound up on the block.
Morty White, a managing director in Wynnchurch's Toronto office, says the firm liked Pro-Fab because of its management team.
"We've been looking at modular housing for a while," he said. While the outlook for the housing market is a concern, Mr. White thinks that there's still room for the modular business to capture more of the total housing market.
He also said Wynnchurch is seeing a strong deal flow right now, although most of its activity has been in the U.S. "We've actually been really busy the last few years," he said. "We haven't been as active in Canada as we'd like to be."