Insight

Founded in 1970, All-Fab Group is a Winnipeg-based manufacturer of a variety of building components, including roofing, floor, and wall systems, engineered beams, and other products. After having served contractors, regional dealers, and building owners across Manitoba and Saskatchewan for decades, by 2017, All-Fab’s CEO was ready to retire and the two families that had owned the company were looking to exit the business.

“The intent was to find new ownership and to take the business in a new direction,” recalls Ed Richmond, who up until then had served as the company’s COO and subsequently took over as CEO. A number of organizations were interested in buying All-Fab, including three private equity firms and two strategic acquirers. Ultimately, they sold All-Fab to Regina-based PFM Capital in early 2018. A mid-market private equity manager, PFM has $900 million in assets under management and a mandate to build a diversified portfolio across Western Canada.

“We hit it off with PFM from the start,” says Richmond. ​“They’re good people, they’re very professional, approachable, and personable, and they understand the cyclical nature of our business and industry. They also recognized that we wanted to grow the business, and were ready to provide the capital to make that possible.”

It was a great match for PFM too. ​“We liked the profile of the business and thought it was a good fit for our funds,” recalls Johanna Salloum, PFM’s Senior Director of Investments and a Partner at the firm. ​“The company had a good base and a strong management team, and we saw an opportunity to further professionalize the business and turn it into a platform to serve a very fragmented market of owner-operator businesses across Western Canada.”

Growth Through Partnership and Acquisition

After the deal closed, the PFM team got to work, giving Richmond the resources and support he needed to grow the business. That included helping to find a new CFO and other senior business leaders, augmenting the company’s business analytics capabilities, revamping its compensation structure, and creating synergies between its previously siloed locations.

That work also included developing the company’s M&A strategy. Through that process, Salloum and her team grew to understand the full extent of Richmond’s vision and ambitions. ​“We knew he wanted to acquire other businesses, but we didn’t fully appreciate just how attractive or extensive those opportunities would be.” PFM soon decided to bring another private equity investor in to help fund that growth. Roynat Equity Partners, a division of Roynat Capital Inc., which is a wholly owned subsidiary of Scotiabank, proved to be the perfect choice. ​“We brought on Roynat in 2019 with the intention to help fund All-Fab’s future acquisitions.”

Over the course of the next few years, Richmond executed his growth plans with PFM and Roynat’s support. He made six different acquisitions that expanded the company’s footprint across North America, including one transformational deal just outside of Minneapolis, Minnesota. Not only did the deal double the size of the business, it performed so well that it gave Richmond the revenue he needed to fund other acquisitions.

During that period, the company grew from a $60 million to a $300 million business.

A Great Exit and Outcome

By 2022, the company had grown significantly and the sector was booming. For PFM, who had been holding the business for five years, it was a natural time to think about exiting. ​“We realized that All-Fab was outgrowing us and our capital, so we started talking about next steps.”

They ultimately went to market at the beginning of 2024, attracting a number of buyers who were interested in All-Fab’s regional distribution, customer base, and reputation. By mid-July they had signed an exclusivity agreement with RONA Inc., a strategic buyer, and ultimately closed the deal in December.

“It was a terrific outcome for our shareholders and investors, and for our team members,” says Richmond. ​“I’m very grateful to PFM and Roynat for being great partners over the years. They were always there when I needed them and I’m delighted that we were able to get them a very good return on their investment.”

For PFM, the deal provided large gains for three different funds and ultimately won it the PE Regional Impact Award in the Prairies, sponsored by KALOS LLP, while for Roynat it represented one of its largest gains.

“We are very pleased with the outcome of this transaction and proud of the accomplishments of the All-Fab management team,” says Tobin Hayward, Managing Director at Roynat, noting that Roynat and PFM have since gone on to partner on three other deals.

“We worked with All-Fab and Roynat for years and successfully navigated a number of challenges together during that time,” notes Salloum. ​“We couldn’t be happier with the outcome and to have built a strong relationship with a great institutional investor like Roynat in the process.”

Source: CVCA Central (https://central.cvca.ca/pfm-capital-wins-2025-pe-regional-impact-award-prairies-for-all-fab-group)