The Caisse de dépôt et placement du Québec (CDPQ), Capital croissance PME (CCPME) and BDC Capital have invested $15 million in DERYtelecom, a Saguenay, Québec-based provider of digital and HD television, high-speed Internet access, and residential phone services to local communities. The subordinated debt funding will support a transfer of the company’s ownership to a new management team. It will also support several of DERYtelecom’s growth projects. CCPME is a private equity fund jointly capitalized by CDPQ and Capital régional et coopératif Desjardins.
La Caisse, Capital croissance PME and BDC Capital invest in DERYtelecom successor
MONTRÉAL, April 8, 2016 /CNW Telbec/ – Caisse de dépôt et placement du Québec, Capital croissance PME (CCPME) and BDC Capital are investing $15 million in DERYtelecom to facilitate a transfer of ownership within the company and reinforce its growth projects.
DERYtelecom is a company well established for more than 60 years and provides cable, Internet and telephone services to 98 municipalities throughout the regions of Saguenay—Lac-Saint-Jean, Charlevoix, Portneuf, Beauce, Bas-Saint-Laurent, Outaouais and Lanaudière.
La Caisse, Capital croissance PME – an investment fund capitalized in equal shares by la Caisse and Capital régional et coopératif Desjardins – and BDC Capital are each investing $5 million in the form of subordinated debt.
“This investment is the implementing of a transfer process ensuring DERYtelecom’s sustainability as a regional company, at a time where other Québec enterprises are being transferred to outside interests. We would like to thank our partners for their support and significant contribution allowing us to preserve local jobs and maintain our actual growth while providing quality telecommunication services across the regional municipalities of Québec,” stated DERYtelecom Director-General, Bryan Godbout.
“This investment facilitates the company’s succession and is perfectly aligned with la Caisse’s strategy focused on high-performing Québec businesses. DERYtelecom, established in several regions of Québec, is a company with solid growth prospects,” said Christian Dubé, Executive Vice-President, Québec at la Caisse.
“This transaction ensures the sustainability of a landmark in Québec’s telecommunications sector. With its head office in Saguenay, DERYtelecom plays a major role, particularly in the region, and generates many quality jobs,” said Marie-Claude Boisvert, Chief Operating Officer, Desjardins Business Capital régional et coopératif, who oversees the management of the Capital croissance PME fund.
“The owners of DERYtelecom and the executives who are taking over the company prepared the transfer in exemplary fashion,” said Patrick Latour, Senior Vice President, Growth & Transition Capital at BDC Capital. The Growth & Transition Capital group at BDC Capital specializes in innovative and customized financial products such as subordinated loans. “We are very proud to be partners in this transition and to contribute to the continued growth of DERYtelecom,” added Mr. Latour.
An integrated communication company focused on regional development, DERYtelecom serves 83,000 households in eight regions of Québec in digital and HD television, high-speed Internet access and residential phone services. It has close to 100,000 customers and has a staff of more than 300 employees, most of whom are based in the La Baie head office in Saguenay.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2015, it held $248.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
ABOUT CAPITAL CROISSANCE PME
Capitalized in equal shares by Capital régional et coopératif Desjardins and Caisse de dépôt et placement du Québec, Capital croissance PME is an investment fund whose primary mission is to provide patient capital to Québec SMEs to carry out a variety of expansion, research and development, corporate acquisition and productivity optimization projects. In the form of subordinated debt between $100,000 and $5 million, the fund pays particular attention to the economic development of companies located in regional municipalities. It is managed by Desjardins Business Capital régional et coopératif.
ABOUT BDC CAPITAL
A subsidiary of BDC, BDC Capital offers a full spectrum of specialized financing and investment solutions to help Canadian entrepreneurs achieve their full growth potential. With more than $1.6 billion under management, BDC Capital takes a strategic, patient approach to nurture companies’ development over the long term.
From venture capital to equity to growth and transition capital, our team of over 100 experienced, local professionals partner with entrepreneurs to identify and meet their needs on flexible terms. Some of the sectors in which we specialize include IT, industrial/clean/energy technology, and healthcare. For more information, please visit www.bdccapital.ca or follow us on Twitter at @BDC_Capital.
For further information please contact:
DERYTELECOM, NATHALIE GAGNON, Director, Communications and Marketing, +1 418.544.3358 Poste : 5119, 1 866.544.3358, firstname.lastname@example.org; CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC, MAXIME CHAGNON, Senior Director, Media and Public Relations, +1 514 847 5493, email@example.com; CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS, RICHARD LACASSE, +1 418 835-8444, 1 866 835-8444, Ext. 3163, firstname.lastname@example.org; BDC CAPITAL, MARIA CONSTANTINESCU, +1 844 625-8321, email@example.com
Photo courtesy of DERYtelecom