Canadian private equity fund Capital régional et coopératif Desjardins, managed by Desjardins Capital de risque, has made a control-stake investment totaling C$15.5 million in Urecon Ltd., a manufacturer of insulated pipes used mainly in municipal and mining works, and based in St. Lazare-de-Vaudreuil, Québec. The buyout transaction, which Desjardins undertook with senior managers at Urecon, will help the company optimize its business management and ramp up growth, and avoid foreign acquisition.
Saint-Lazare-de-Vaudreuil manufacturing company Urecon will continue its growth thanks to an outlay of additional capital from five of its managers and a $15.5 million investment from Capital régional et coopératif Desjardins (www.capitalregional.com).
Urecon, founded in Saint-Lazare in 1969, is a successful business specializing in the manufacturing of insulated pipes used mainly in municipal and mining works. It employs 150 people, with 100 across two plants in the Montérégie (Saint-Lazare and Coteau-du-Lac) and 50 people in Calmar, an Edmonton, Alberta suburb.
According to Urecon CEO Mr. Gregg Gaylard, “The partnership with Desjardins brings a level of expertise that will help us optimize our business management and ramp up our development. After some discussions with a U.S. competitor, I’m proud that this deal preserves Canadian ownership of Urecon, which exports 25% of its production.”
“The seasoned team of managers, who also own shares of the company, along with Urecon’s leading market position in Canada convinced us that this partnership was worthwhile,” stated Mr. Luc Ménard, Vice-President, Buyouts and Major Investments, at Desjardins. “In the next few years, we will support Urecon management in reaching new heights. Eventually, we will offer employees the opportunity to become shareholders and benefit from the company’s success.”
About Capital régional et coopératif Desjardins
With nearly 105,000 shareholders, Capital régional et coopératif Desjardins is a publicly traded company founded on the initiative of the Desjardins Group. With net assets of $1,350 million, the Company contributes to economic development by valuing and nurturing the best of Québec entrepreneurship. Directly or indirectly through partner funds, CRCD supports the growth of over 300 companies, cooperatives and funds in various industries spanning all Québec regions. (capitalregional.com)
Information (for journalists only):
Media Relations Advisor
Capital régional et coopératif Desjardins
418-835-8444 or 1-866-835-8444, ext. 3163
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