MONTREAL, Dec. 12, 2013 /CNW Telbec/ - La Caisse de dépôt et placement du Québec announced that it has concluded a $4-million equity investment in CAD Railway Industries Ltd. (CADRI), the largest rolling-stock repair and refurbishment facility in Canada.
This new investment by la Caisse will enable CADRI to finance the modernization of its equipment and facilities so as to diversify its services for the long term, among other things.
La Caisse has been a partner of CADRI since 2011, when it made an initial $7-million investment as part of a management buyout of the company. Since then, the organization has recorded a solid performance.
"By increasing its stake in CAD Railway Industries Ltd., la Caisse is reaffirming its commitment to support a Québec company that has carved out an enviable position in its industry," said Normand Provost, Executive Vice-President, Private Equity. "The company has an impressive track record and has been growing steadily, notably because the nature of its operations, which involve long-term partnerships with customers."
"This new investment by la Caisse confirms its long-term commitment to our organization," said Fausto Levy, President and Chief Executive Officer of CAD Railway Industries Ltd. "We're pleased to be able to count on Caisse support at the key stages of our growth."
ABOUT CAD RAILWAY INDUSTRIES LTD.
CAD Railway Industries Ltd., founded 45 years ago in Lachine, Québec, is a manufacturing company servicing the rail, marine, mining, and power generation industries. CAD Railway Industries Ltd. offers its main customers in these industries integrated repair, refurbishment and upgrading services for locomotives, freight cars, passenger cars and diesel engines. CADRI also manufactures custom replacement parts for rolling stock.
CADRI operates Canada's largest repair and refurbishment facility for rail vehicles. To complement the painting and curing services offered at its Lachine facility, the company opened a second, leading-edge painting shop in the Greater Toronto Area early in 2013.
Major refurbishment carried out by CAD Railway Industries Ltd. adds about 20 years to the service life of vehicles and parts. With a testing facility that is the only one of its kind in Québec or the rest of Canada, and one of only three in North America that can test diesel engines of 1,000 to 6,000 HP, the company also works with its main customers on research and development projects to optimize the performance of new and reconditioned diesel engines, improving their energy consumption and reducing atmospheric emissions. The company has 450 employees at its strategically located facilities in Lachine and Toronto.
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.
SOURCE: Caisse de dépôt et placement du Québec
For further information:
Senior Adviser, Media Relations