Montréal, August 10, 2007 – The Solidarity Fund QFL (the “Fund”) and Capital régional et coopératif Desjardins today announced an $8.5 million investment in Salerno Transparent Bags (1997) Ltd. (“Salerno”), a producer of plastic packaging for industrial and commercial use. The company operates two plants, one in Plattsburgh, N.Y., and another in Châteauguay, where it will henceforth be headquartered.
The Fund played an active role in this transaction with its $6.4 million investment and participation in Salerno’s management buyout. “The company’s transfer not only confirms Salerno’s growth but also offers an excellent opportunity for the Fund to back a partner interested in solidifying its foundation in Québec,” said Gaétan Morin, the Fund’s Executive Vice-President, Investments.
This type of transaction is part of the challenges and target investment areas for Capital régional et coopératif Desjardins. "In addition to partnering us with a solid team of managers, this investment will enable Salerno to bring the head office of a mature, growing company to the region, which makes us particularly proud," said Roger Durand, Vice-President, Development Capital, at Desjardins Venture Capital.
For his part, Salerno chief executive Kurt Strater is extremely pleased to see two key Québec institutions pool their resources and efforts in a show of confidence in his company’s development.
Salerno has been supplying plastic film and packaging in standard and custom sizes to the horticultural, chemical, insulation and salt markets for more than 40 years. Growing demand from other markets has prompted the company to diversify in order to better leverage plastic’s adaptability to a wide variety of packaging products. Salerno currently employs 250 people, including 160 at the Châteauguay plant.
About the Solidarity Fund QFL
With net assets of over $7.2 billion, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 1,681 companies. It currently has nearly 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect over 116,000 jobs. For more information, visit www.fondsftq.com.
About Capital régional et coopératif Desjardins
Capital régional et coopératif Desjardins 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
- 30 -
Note: The telephone numbers provided below are for the exclusive use of journalists and other media representatives.Sources: Josée Lagacé
Senior Advisor, Press Relations and Communications
Solidarity Fund QFL Telephone: 514 850-4835
E-mail:
jlagace@fondsftq.comSylvie Audet
Vice-President, Strategic Planning and Communications
Desjardins Venture CapitalTelephone : 514 281-7799
E-mail :
sylvie.audet@dcrdesjardins.com