The regional network of the Fonds de solidarité FTQ has invested a total of $3.75 million in the past year in four business transfer deals in the Québec City area. The ownership changes involved LGT, a provider of engineering and energy efficiency consulting services; Métal Potvin, a manufacturer of sheet metal and steel mouldings; Cristal Contrôles, a maker of energy management, lighting, temperature and humidity control systems; and Graphica Impression, a digital printing centre. The Fonds régionaux de solidarité FTQ has invested $60 million in 85 projects in Québec City since 1996.
Fonds régionaux de solidarité FTQ Invest $3.75 Million to Help Four Québec City Companies Pass the Mantle
The Fonds régionaux de solidarité FTQ celebrate their 20th anniversary: $60 million invested in Québec City since inception
Québec City, June 16, 2016 – To ensure the continuity of four companies in greater Québec City, the Fonds régionaux de solidarité FTQ (FRS) invested a total of $3.75 million this past year in the business transfers of LGT, Métal Potvin, Cristal Contrôles and Graphica Impression.
“Due to a lack of transfers in our region, 700 to 800 companies could disappear in the next 10 years, leading to a loss of 9,000 to 12,000 jobs(1). We encourage SME owners to step into action now and plan for the future before it’s too late, because these companies are the drivers of our regional economy. LGT, Métal Potvin, Cristal Contrôles and Graphica Impression are prime examples of planned, orderly business transfers. By taking the bull by the horns, they have maximized their chances of survival,” said Jean Roy, regional director of the Fonds régionaux de solidarité FTQ Québec.
Established in 1998 by engineers Denis Lemieux and Serge Fournier, LGT offers consulting services in structural, civil, mechanical, and electrical engineering, as well as in energy efficiency. With time, the company also became specialized in the design and maintenance of IT infrastructure, becoming an industry leader in Eastern Canada.
In an effort to future-proof their company, the founders put in place a plan to ensure its successful transfer. Four key employees, Martin Boucher, Moïse Gagné, Denis Rioux and Bruno Ste-Croix acquired in 2011 an equity stake in LGT as the first step in the transfer. Since then, the company has seen rapid growth, going from 20 employees to nearly 70 today.
Since January 1st, 2016, these four shareholders hold 100% of the company and represent its next generation of leaders. Denis Lemieux and Serge Fournier continue to be proudly involved in LGT, namely as mentors to the new ownership group.
The investment of the FRS will allow the current owners to complete the handover to the four shareholders.
Métal Potvin is a manufacturer and distributor of sheet metal and steel mouldings. Founded in 1986, the Beauport-based company has 19 employees and a solid reputation built as a result of an experienced team and in-depth knowledge of the market.
To ensure the future of this metal fabricator, the FRS provided Frank Leclerc and Caroline Pouliot with the financing required to purchase the company. This is the second time the FRS are backing these two partners in a business succession project; the first was an investment for the acquisition of Auvents W. Lecours.
Established in 1991 by Pierre Chaput, Cristal Contrôles manufactures energy management, and lighting, temperature and humidity control systems. Unable to find an internal successor, Pierre Chaput turned to Jacques Beauchesne and Richard Renaud, two partners looking to buy a business.
With their investment, the FRS are helping this 20-employee Québec City company transition to new ownership. To ensure a smooth process, Mr. Chaput will remain on board.
Graphica Impression is a digital printing centre founded in Québec City in 1971. Initially specializing in the reproduction of plans and specifications for the construction and civil engineering industries, the company has expanded its services over time and today offers a wide variety of solutions, including all types of digital reproduction and printing services, in small and large format, as well as traditional offset printing.
Having acquired Graphica in 2001, Jean-Pierre Cadoret is passing the mantle to Keven Rousseau and Jean-Raymond Castelli who, thanks to the financial support of the FRS, will be the new owners. Mr. Cadoret will remain at the helm to facilitate the transition. This transaction is a prime example of good practices to ensure a successful handover.
20 years of investments in Québec City
The Fonds régionaux de solidarité FTQ network was created in 1996 to provide Québec regions with a development tool. To date, the Québec City FRS have invested $60 million in 85 projects, helping to create, maintain or protect 4,100 quality jobs in the region.
“These figures attest to the relevance of the regional funds and make us optimistic and enthusiastic about our next 20 years in Québec City,” added Luc Pinard, president and chief executive officer of the Fonds régionaux de solidarité FTQ
Quality jobs and concrete spinoffs for Québec City
A recent study by KPMG shows that the average salary at partner companies of the Fonds de solidarité FTQ and the Fonds régionaux in Québec City is 20% higher than the regional average ($47,302 versus $39,334). As well, the GDP per direct job generated by Fonds partner companies is 8% higher than the region’s GDP per job ($97,918 versus $90,653).
A summary of the KPMG study for Québec City is available by clicking here.
About the Fonds régionaux de solidarité FTQ
The Fonds régionaux de solidarité FTQ have been helping to further regional economic development in Québec for 20 years. An integral part of the Fonds de solidarité FTQ network, the Fonds régionaux have invested $635 million in 1,040 projects since their inception in 1996, helping to create, maintain or protect close to 37,000 jobs. www.fondsreg.com
(1) RDV Relève, Découvrez le repreneuriat
Fonds de solidarité FTQ
Telephone: 514 850-4835
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Fonds de solidarité FTQ
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Photo courtesy of Québec City Tourism