OTTAWA, February 11, 2015 /CNW/ - Export Development Canada (EDC) today announced CAD 1.5 M in financing guarantees for two acquisitions made by Montreal's bugatti-Sedona Inc. (bugatti) – a small company specializing in handbags and luggage that will leverage the acquisitions to grow their business in Europe and the US.
Export guarantees are products that EDC provides to the banks of exporters to help manage their capital risk. With these guarantees, bugatti's bank, Desjardins, was able to directly lend bugatti the capital they needed to make the acquisitions. EDC's market experience and expertise can help make it easier for the banks of Canadian companies to support their international business.
"EDC fit naturally into our business model to deliver bugatti products on the global stage," said Benoit Larose, bugatti's Executive Vice-President. "As we increase sales into the United States, establish our sister company in Europe, and look to future international opportunities, we recognize EDC's role in facilitating our expansion and helping us reach our short- and long-term goals."
In May 2014, bugatti acquired Stebco and Bond Street Ltd., a business bag and luggage company based out of Montreal with sales predominantly to the US. Less than three months later, they acquired Traveller Jean Weipert GmbH, a luggage distribution company based in Mühlheim, Germany.
Bugatti had minimal export sales prior to these acquisitions. By growing their business into the US and Europe, they have been able to increase profits considerably, and given this early success, they look forward to more international expansion.
"This is a great example of what going global can do for your small business," said Christian Dallaire, Vice-President, Small Business Solutions, at EDC. "We've seen time and again that international demand for Canadian products exists, it's just a matter of getting out there and tapping into the right markets. Bugatti-sedona has done exactly that, and now they are seeing the benefits."
In 2014, EDC provided more than 6000 small- to medium-sized businesses (SMEs) with the tools they needed to enter the international marketplace. EDC is the leading provider of small business financing for Canadian companies that sell or invest outside of Canada.
"If you are part of a small- or medium-sized business and would like to take advantage of the opportunities that exist outside of our borders, give us a call, we're here to help," added Dallaire.
To learn more call 1-888-434-8508, or visit our small business solutions page.
About Bugatti-Sedona Inc
Bugatti-sedona Inc., specializes in the design, import and distribution of business bags, accessories and luggage such as briefcases, writing cases and travel bags. It is best known for its bugatti product line, which is sold across Canada. The Company also provides business accessories to corporate and/or premium products distributors across Canada and the United States under its brand names bugatti and bugatti The European Brand
EDC is Canada's trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca.
SOURCE Export Development Canada
For further information: Phil Taylor, Export Development Canada, (613) 598-2904, [email protected]