Publicly traded Mosaic Capital Corporation says that it has successfully completed the acquisition of a 70 per cent interest in the business being carried on by Bassi Construction Ltd. and Basscon Group Inc. The remaining 30 per cent is retained by John Bassi.
Bassi is an Ottawa-based 50-year-old multi-discipline commercial and industrial renovation/tenant refit and construction company with more than 120 employees. Bassi operates in five primary divisions: commercial tenant fit-ups and restoration, specialty, concrete remediation, fire and flood reclamation and project management.
Mosaic says in a news release that the cost of the acquisition was $24.5 million, subject to typical post-closing adjustments and was funded through a combination of cash ($21.5 million) and vendor take-back financing ($3.0 million) which is payable in full on November 30, 2019 and bears interest at commercial rates. In addition, there is a three-year earn out provision to be paid to the vendor if the business meets specified financial targets. Existing management will remain in place.
“I am thrilled to partner with the Mosaic Capital team,” John Bassi said in a statement. “Their professionalism, honesty and work ethic are the same values that have been a part of the Bassi team for the last 50 years. Mosaic management’s depth will make our firm even stronger and more competitive. I look forward to working closely with the Mosaic team as we further expand our business.”
“This acquisition represents Mosaic’s first acquisition in the Ontario market, another key step in our long term growth and diversification strategy,” said Mark Gardhouse, CEO of Mosaic Capital. “We believe this transaction is another example of Mosaic acquiring strong businesses operated by successful owners and management teams. We think Bassi has substantial growth potential in the Ottawa market as well as other regions of Ontario.”
“We are excited about our partnership with Bassi,” Mosaic president Harold Kunik said in the news release. “Bassi is well respected in the Ottawa renovation and construction market and based on its reputation for quality and on-time delivery, has successfully continued to grow its business. The acquisition of Bassi is the next step in our multi-phase plan to increase Mosaic’s portfolio representing a diverse range of industries and geographic locations.”