Montréal, July 18, 2011 – The Fonds de solidarité FTQ (“Fonds”) has acquired a stake in Meloche Group, investing $3 million to support the growth plan of this Salaberry-de-Valleyfield-based SME specializing in the design and fabrication of metal parts for the aerospace industry. Fondaction CSN, Fonds Aerofund II (managed by ACE Management) and the Meloche family also participated in the financing, contributing $1 million each. The company will use the $6 million raised to modernize the equipment and increase the production capacity of its Salaberry-de-Valleyfield and Bromont plants. Meloche Group currently has 90 employees and plans to create 60 new jobs in the next five years.
“Aerospace is a key industry in Québec, exporting high-tech products with strong added value,” said Jean Wilhelmy, Senior Vice-President, Aerospace, Construction, Services and Transportation, at the Fonds de solidarité FTQ. “However, its companies are facing stiff international competition and must continuously invest to improve their position. We at the Fonds believe that Meloche Group has what it takes to succeed and capitalize on this industry’s tremendous growth potential.”
Added Régent Watier, Head of Investment at Fondaction CSN, “Fondaction is proud to back the growth of Meloche Group, a company that helps create quality jobs in an industry that’s very important for Québec.”
Meloche Group is a leader in the machining, surface treatment, assembly and manufacturing engineering of complex small and medium metal parts. A strategic supplier of, among others, Bombardier Aerospace, Pratt and Whitney and GE Aviation, the company recently obtained the AS9100B and NADCAP quality certifications, allowing it to solicit contracts from major order givers.
“Over the years, Meloche Group has developed a vertical integration strategy for its services that has resulted in world-class performance in terms of quality and just-in-time delivery. This scores points with customers and sets us apart from the competition,” stated Meloche Group CEO Hugue Meloche. “The new capital from Fonds de solidarité FTQ, Fondaction CSN and Aerofund II will not only allow us to boost capacity but to meet the increased demand projected for the medium and long terms and to significantly improve our competitiveness abroad.”
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $8.2 billion as at May 31, 2011, the Fonds de solidarité FTQ is a development capital fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec's economic growth. The Fonds de solidarité FTQ is a partner, either directly or through its network members, in 2,129 companies. With its 583,235 owner-shareholders, it has helped, on its own or with other financial partners, to create, maintain and protect 160,789 jobs. For more information, visit www.fondsftq.com.
About Fondaction CSN
Fondaction CSN invests in Québec SMEs with the aim of creating and maintaining quality jobs in the province within a sustainable development perspective. The organization manages $843 million in assets, derived from the retirement savings collected from over 107,000 shareholders and is the financial partner of some 100 SMEs, funds and specialty funds active in all activity sectors as well as in the social economy. www.fondaction.com
About ACE Management
With offices in Montréal, Paris and Toulouse, ACE Management advises and manages seven investment funds with a total capitalization of approximately €300 million. The organization has 18 years of experience in equity investments using a sector-based approach that leans heavily towards industry. Sponsored by CDC Entreprises, the Fonds de solidarité FTQ and key aerospace players (Airbus, Safran), Aerofund II was created to further the emergence and consolidation of first- and second-tier subcontractors. www.acemanagement.fr
About Meloche Group
Meloche Group is an integrated supplier of machined components and value-added sub-assemblies for the aerospace and defence industries. The organization’s mission is to optimize its capabilities in precision machining, surface treatment, painting, assembly and manufacturing engineering so as to meet the specifications of major manufacturers. A family-owned business founded in 1974, Meloche Group strives for excellence in all its business processes. For more information, visit www.melocheinc.com.
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