Montréal, February 21, 2007 – The Solidarity Fund QFL (the “Fund”), Desjardins Capital régional et coopératif and Fondaction, the CSN’s development fund for cooperation and employment, today announced respective investments of $23.2 million, $14.5 million and $8.6 million in Corporation Développement Knowlton Inc., whose major shareholder is Novacap II, limited partnership.
The funds were used to finance a merger between LEK Inc., owned by Corporation Développement Knowlton, and Tri-Tech Laboratories Inc. (“Tri-Tech”), both manufacturers of personal care products for the North-American market. Under the merger, a new company will be formed comprising Tri-Tech’s factory in Lynchburg, Virginia, and LEK’s two factories in Knowlton and Toronto. The transaction will bring the number of employees to 1,300, including more than 700 in Québec.
For Gaétan Morin, the Fund’s Executive Vice-President, Investments, this partnership is right in line with the Fund’s orientation. “Our mission is to help Québec businesses grow, and LEK is a perfect example. This merger will allow the company to consolidate its position in Québec and to expand into a market with tremendous potential. Québec needs these kinds of entrepreneurs who boldly go in search of new opportunities.”
For his part, Roger Durand, Vice president Investment – Capital development , at Desjardins Capital regional et coopératif, is very pleased to be associated with LEK. Besides allowing the company to shine in North America by consolidating and forging partnerships with major players, this transaction will keep LEK’s decision-making centre here in Québec.
Fondaction’s head of investment Régent Watier is impressed with the management quality at both companies. “LEK and Tri?Tech are profitable companies with solid footing in North America. Fondaction is proud to be involved in this project, which will keep hundreds of quality jobs in the Estrie region.”
About the Solidarity Fund QFL
With assets of $6.9 billion, the Solidarity Fund QFL is a development capital fund that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and contribute to Québec’s economic development. The organization is a partner, either directly or through its network members, in 1,681 companies. The Fund currently has close to 570,000 shareholders and has helped, on its own or with other financial partners, create, maintain and support over 116,000 jobs. For more information, visit www.fondsftq.com
Desjardins Capital régional et coopératif
Desjardins Capital régional et coopératif is a publicly-traded company founded in 2001 on the initiative of the Desjardins Group. Managed by Desjardins Venture Capital, the Company’s primary mission is to raise venture capital with a view to fostering the economic development of Québec’s cooperatives and resource regions. With an authorized capitalization of $1.325 billion, the Company assists companies and cooperatives throughout Québec.
(www.capitalregional.com)
Fondaction
Fondaction, established in 1996, invests in development capital in order to maintain and create jobs in Québec. Its net assets, which totalled $475 million as of November 30, 2006, come from the retirement savings of 65,000 shareholders. Fondaction acts as the financial partner of 100-odd businesses and partner and specialized funds. It focuses, in particular, on companies that engage in participatory management in the social economy (employee-controlled enterprises, cooperatives, and so on) and on organizations that emphasize the environment Fondaction was one of the first financial institutions in Québec to produce a sustainable development report inspired by the guidelines of the Global Reporting Initiative (GRI).www.fondaction.com
www.REERvert.com
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Renseignements : Phone numbers above are reserved strictly for journalists and medias representatives.
Josée Lagacé
Senior Advisor, Press Relations and Communications
Fonds de solidarité FTQ
Tél. : 514 850-4835
jlagace@fondsftq.com
Suzanne La Ferrière
Communications Co-ordinator
Fondaction CSN
Tél. : 514 525-7041
suzanne.laferriere@fondaction.com
Danièle Routhier
Manager, Public Affairs
Desjardins Venture Capital
Tél. : 514 281-2211
Daniele.routhier@dcrdesjardins.com