Hallcon sale to produce 34% IRR for Southfield Capital

Southfield Capital said Tuesday that it closed the sale of Hallcon Corp. to Novacap. Toronto-based Hallcon provides specialty outsourced services primarily to the railway, transit and oil and gas sectors in North America. This sale resulted in a gross return to Southfield of 3.3x and 34 percent IRR; after its expected earn out the return for Southfield should rise to 3.6x and 37 percent IRR on a pure operating basis, a source said. Lazard acted as lead financial advisor and BB&T Capital Markets acted as co-financial advisor to Hallcon.

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