MONTREAL, Dec. 17, 2013 /CNW Telbec/ - La Caisse de dépôt et placement
du Québec, the main sponsor of the Québec Manufacturing Fund (QMF), has
announced the injection of another $100 million into the fund. The new
investment creates phase II of the fund, positioning the QMF to
continue to help Québec's manufacturing companies develop and grow.
"To prosper, Québec's manufacturing companies have to compete globally,
put in place succession plans and optimize their business processes. To
address these challenges, La Caisse intends to support Québec's
manufacturing sector by offering it new capital as well as the QMF
managers' outstanding expertise," said Normand Provost, Executive
Vice-President, Private Equity, at La Caisse. "The fund enables us to
earn returns for our clients while generating economic benefits for
"The managers of the Québec Manufacturing Fund welcome phase II of the
QMF. It will enable us to continue to play an active role in the
development of Québec's manufacturing companies," stated Claude
Couvrette, a partner in the Québec Manufacturing Fund. "We thank La
Caisse de dépôt et placement du Québec for its major involvement in
The support provided by the Québec Manufacturing Fund goes far beyond
financial assistance. The fund works closely with the management of its
investee companies to improve their profitability, determine priority
action and coordinate its implementation.
With this new financial commitment, the QMF will support manufacturing
companies that have developed technologically advanced niche products.
The selected companies will also be required to demonstrate strong
global export potential and have their decision-making centres in
La Caisse first invested $100 million at the time of the creation of the
A fund with a proven track record
Since its inception, the QMF's managers have successfully completed
growth-oriented projects with five Québec manufacturers. Working with
senior management, they have contributed to business development,
optimized operations and facilitated mergers and acquisitions. The
following are two notable investments.
Since the QMF got involved with pipe fittings manufacturer Ezeflow, the
company has made two major acquisitions, one in Edinburgh, Scotland,
and the other in Pittsburgh, United States. As a result, Ezeflow has
expanded its product line and diversified its markets.
In addition to the financial package, the QMF was actively involved in
all phases of both transactions, including preliminary negotiations,
due diligence and legal agreement.
"The partnership with the QMF gives us operational expertise vital to
the success of our future projects," said Jacques Latendresse,
Co-president of Ezeflow.
In less than three years, the company's sales have increased by more
Fraco Products Ltd, St-Mathias-sur-Richelieu
Fraco, a manufacturer of construction work platforms, has been
collaborating with the Québec Manufacturing Fund since 2007. The two
organizations conducted a business opportunity analysis, which
determined that Fraco's line of products would be strategically rounded
out with a line of construction elevators.
The QMF played an active role in the negotiation of a manufacturing and
global distribution agreement with a Swedish construction elevator
designer and was involved in adapting the equipment to the North
After its first year on the market, the company has sold more than 15
units and received orders for more than 80 others.
The Québec Manufacturing Fund has also worked with Fraco's management
team to implement marketing strategies covering promotion, sales,
distribution and pricing.
"We're very pleased with the Québec Manufacturing Fund's involvement in
our Company. With this solid partner, the relationship goes beyond a
simple financial arrangement. The QMF provides a full range of services
that covers our company's operations and long-term development. Its
recognized expertise will enable us to step up our penetration of the
North American market, increase our output and strengthen our position
as a North American leader," said Armand Rainville, President of Fraco
Fraco does business in Canada but also operates in the United States,
India, the Middle East and Europe.
In addition to Fraco Products Ltd. and Ezeflow, the Québec Manufacturing
Fund has invested in Liberty Spring Inc. of Montmagny, Hason Steel
Products Inc. of Lanoraie and Avant-Garde Technologie CMFA Inc. of
ABOUT LA CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
La Caisse de dépôt et placement du Québec is a financial institution
that manages funds primarily for public and private pension and
insurance plans. As at June 30, 2013, it held $185.9 billion in net
assets. As one of Canada's leading institutional fund managers, La
Caisse invests in major financial markets, private equity,
infrastructure and real estate globally. For more information: www.lacaisse.com
ABOUT THE QUÉBEC MANUFACTURING FUND
The $200-million Québec Manufacturing Fund L.P., sponsored by La Caisse
de dépôt et placement du Québec, has a mandate to identify profitable
Québec manufacturing companies that present attractive business
opportunities and have the potential to quickly make significant
improvements to their operations. The QMF combines the financial
expertise of La Caisse de dépôt et placement du Québec with the
operational expertise of four experienced managers. The Fund assists
entrepreneurs in Québec's manufacturing sector with their projects by
providing financing and expertise for business development, operations
management and financial management. http://fondsmanufacturier.com/
SOURCE: Caisse de dépôt et placement du Québec
For further information:
Interviews may be arranged with managers from La Caisse and the QMF, as well as with executives of the manufacturing companies that have received assistance from the Québec Manufacturing Fund.
For more information or to schedule an interview:
Senior Adviser, Media Relations