MONTREAL, April 28 /CNW Telbec/ - Société générale de financement du Québec (SGF) is taking part in a financing totaling $50 million offered to Colabor Group Inc. (TSX: GCL), a Quebec market leader in the distribution of food products across the province as well as in Ontario.
The financial transaction is a non-guaranteed convertible subordinated debenture bearing a 5.7% interest rate over a 7-year term.
"SGF is happy to assist a Quebec business in the pursuit of its growth projects and thus contribute to support 600 jobs in Québec and 225 indirect jobs among its vendors", said Pierre Shedleur, SGF President and General Manager.
Colabor Group is a leader in the distribution of food products, food related and non-food products, private brands and national brands, servicing the retail market (grocery stores, convenience stores, etc.) as well as the food services industry (hotels, restaurants and institutions). The Colabor Team proved itself able to effectively integrate acquisitions to the benefit of all industry stakeholders, and employees in particular. Its operations are essentially focused in the Québec and Ontario markets.
To date, Colabor Group shows more than a billion dollar revenues. Colabor currently distributes about 35,000 products from over 550 vendors and manufacturers to over 25,000 outlets, via distributors who operate in Québec, in the Atlantic region as well as in Ontario.
Société générale de financement du Québec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred capital-share investments.
SOURCE SOCIETE GENERALE DE FINANCEMENT DU QUEBEC
For further information: For further information: Sophie Alarie, Senior Advisor, Communications and Public Relations, (514) 876-9368