Montréal, July 3, 2015 – The Caisse de dépôt et placement du Québec, the Fonds de solidarité FTQ and Investissement Québec have partnered with One51 to acquire IPL, a Québec manufacturer based in Saint-Damien. IPL is the North American leader in injection-moulded plastic products and solutions for the food and industrial sectors.
The transaction was conducted with NOVACAP, a major Canadian private equity firm, which is selling its 70% stake in IPL.
The transaction, subject to the usual closing conditions, represents an investment of $280 million: $90 million by One51, $50 million by the Caisse, $30 million by the Fonds de solidarité FTQ, $10 million by Investissement Québec and $100 million in bank financing. Of the total funds invested by the Caisse, the Fonds de solidarité FTQ and Investissement Québec, $45 million is in the form of subordinated debt. As a result of the transaction, One51 will have a 67% interest in IPL, the Caisse a 22% interest and the Fonds de solidarité FTQ an 11% interest.
A leader in the manufacture and marketing of injection-moulded plastic resin–based products, hazardous waste management and materials recycling, One51 brings to IPL a global network and complementary expertise in plastics.
“IPL is a high-calibre North American company. It is well aligned with our strategic plan and will allow us to grow and to expand our product offering, while giving us access to new markets internationally. We are pleased that we could rely on the collaboration of the Caisse, the Fonds de solidarité FTQ and Investissement Québec to make this transaction possible,” said Alan Walsh, President and CEO of One51.
“The arrival of such a strategic partner will accelerate the international growth of IPL, a high-quality Québec company. We are delighted that the European company One51 chose Québec to develop its North American platform, from the Saint-Damien head office,” noted Christian Dubé, Executive Vice-President, Québec, at the Caisse de dépôt et placement.
“This acquisition with a strategic partner like One51 will secure jobs at IPL. One51’s global network will benefit IPL’s growth and allow the Saint-Damien company to strengthen its leadership position in plastic products,” said Normand Chouinard, Executive Vice-President, Investments, at the Fonds de solidarité FTQ. The Fonds has been a partner of IPL since 2010, when it acquired IPL with NOVACAP.
“We have invested substantially in IPL over the past few years so that the company can perform well and thrive,” said Michel Côté, IPL’s Chairman of the Board and Senior Partner at NOVACAP. “The time has come for IPL to move to the next level in order to ensure its development and sustainability. With this goal in mind, we have taken time to seek strong partners that will maintain its success and pursue its growth.”
IPL Inc. is a leading North American manufacturer of injection-moulded plastic products. IPL employs over 800 people in three plants located in Saint-Damien, Québec, in Edmundston, New Brunswick, and in Lee’s Summit, Missouri. The company manufactures and markets over 400 products serving the packaging, materials-handling and environmental sectors. IPL also offers high-tech, value-added custom moulding services for the packaging and transportation industries. For more information on IPL, consult www.ipl-plastics.com/
One51, which is headquartered in Dublin, Ireland, is a top-tier company and key player in environmental services and specialized plastics, with operations in Ireland, the United Kingdom and China. The Group also manages investment portfolio assets in the renewable energy sector. For more information, see www.one51.com/
About the Caisse de dépôt et de placement du Québec
The Caisse de dépôt et placement du Québec is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2014, it held $225.9 billion in assets. One of Canada’s leading institutional fund managers, the Caisse invests globally in major financial markets, private equity, infrastructures and real estate. For more information, visit www.cdpq.com/en/
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive the Québec economy. With net assets of $10.5 billion as at November 30, 2014, this development capital investment fund channels the savings of Québecers into all sectors of the economy in order to help create and maintain jobs in a variety of companies and encourage Québec’s development. The Fonds de solidarité FTQ is a partner, either directly or through its network members, in over 2,450 companies. With over 600,000 shareholder-savers, it participates in creating, maintaining and protecting more than 172,000 jobs. For more information, consult www.fondsftq.com/en/accueil.aspx?
About Investissement Québec
Investissement Québec’s mission is to foster the growth of investment in Québec, thereby contributing to the economic development and creation of jobs in all regions of the province. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, in order to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.
With over $1.5 billion of assets under management, NOVACAP is one of Canada’s leading private equity firms. Since 1981, its distinct partnership approach based on extensive operational expertise has helped more than 70 companies in North America accelerate their growth and maximize their value. NOVACAP is one of the leading private capital investment firms on the continent. It has already raised $300 million for NOVACAP Industries IV and expects to finalize commitments for $425 million in the coming months. For more information, visit: www.novacap.ca/en/
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