Montréal, April 7, 2008 – The Solidarity Fund QFL (the “Fund”) is pleased to announce that it has invested US$25 million in Stella-Jones, a company specializing in the production of wood poles for telecommunications companies and railway ties, bringing its total investment to date to CA$45 million. This latest investment is to help finance the acquisition of The Burke-Parsons-Bowlby Corporation (BPB), which operates five railway tie production plants in the U.S.
“It’s already been five years since we first partnered with Stella-Jones, a solid Québec company that has positioned itself well by making a series of strategic acquisitions in the last few years. This latest acquisition will not only consolidate the company’s leadership in its industry but further secure some 100 jobs in Québec,” stated the Fund’s executive vice-president of investments, Gaétan Morin. “Helping our partner companies grow is part of our mission, and Stella-Jones is a prime example. We are very impressed with the company’s dynamic management team, in which we have full confidence,” added Mr. Morin.
“This acquisition positions us among the leading railway tie producers in North America. Thanks to the Fund, a patient and accessible investor, we are well placed to continue with our strategic plan to become an industry consolidator by purchasing companies operating in our core markets,” said Stella-Jones chief executive Brian McManus.
Headquartered in Montréal, Stella-Jones (TSX: SJ) and its Québec plants located in Delson, Sorel and Gatineau, is a leading North American producer and marketer of industrial treated wood products, specializing in the production of pressure treated railway ties as well as wood poles supplied to electrical utilities and telecommunications companies.
About the Solidarity Fund QFL With net assets of over $7.4 billion as at November 30, 2007, 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 1,696 companies. It currently has more than 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect over 122,000 jobs. For more information, visit
www.fondsftq.com.
- 30 -
Information:
The following telephone number is provided for the exclusive use of journalists and other media representatives.
Source: Josée Lagacé
Senior Press Relations and Communications Advisor
Solidarity Fund QFL
Telephone: 514-850-4835
Email: jlagace@fondsftq.com