Armtec Limited

Transaction Summary

ONCAP along with senior management and employees acquired a majority interest in Armtec Limited (“Armtec”) from Vicwest Corporation in August 2001.

Business Description

At the time of acquisition by ONCAP, Armtec was a leading provider of steel and high-density polyethylene (“HDPE”) products and engineered solutions primarily to the Canadian civil engineering industry. End-markets served included infrastructure (highways, roads and bridges), natural resources (forestry, mining and oil and gas), agriculture (drainage) and residential construction (moisture barrier and drainage). In addition, Armtec manufactured a foundation wrap for dampness protection that was sold to the residential construction and renovation market.

Accomplishment and Outcome

The investment thesis included: (i) improvement in the operations of the business to maximize cash generation opportunities, including working capital management, product pricing and capacity utilization; (ii) expansion of existing and new product offerings within the Canadian market, particularly related to the HDPE pipe market; and (iii) further penetration of new geographic markets by partnering with or acquiring regional players.

In July 2004, Armtec converted to an income trust and completed a $90 million initial public offering. ONCAP sold 100% of its stake in Armtec in the transaction, realizing $76 million.