Desjardins Capital and Investissement Québec have backed Liberty Spring’s purchase of Elka Suspension, a Boucherville, Quebec-based maker of suspension systems for powersports vehicles, light trucks and SUVs. No financial terms were closed. Desjardins and IQ are minority investors in Liberty Spring, a Montmagny, Quebec-based precision spring manufacturer.
MONTMAGNY, QC, July 29, 2021 /CNW/ – As minority shareholders of Liberty Spring, Desjardins Capital and Investissement Québec are pleased to support the company in its acquisition of Elka Suspension (“Elka”), a manufacturer specializing in the design of suspension systems for powersports vehicles , light trucks and SUVs. In addition to consolidating Liberty Spring’s leadership position, the acquisition ensures that Elka will remain a Quebec-owned company. Liberty Spring, a precision spring manufacturer with over 700 employees, has 6 production sites: Montmagny and Toronto (Canada), Juarez and Querétaro (Mexico), Suzhou (China) and Giarmata (Romania).
Elka is a manufacturing company in Boucherville, Quebec, with about 50 employees. The company specializes in research and development, design, testing and manufacturing of custom suspension systems. Its products are sold mainly in Canada and the United States, but are also distributed in other countries.
The acquisition will allow Liberty Spring to strategically diversify its offer by introducing a range of proprietary suspension products for different types of vehicles. High-quality springs are a key component of these systems. It will also enable Elka to grow faster thanks to Liberty Spring’s network and create new jobs in the short term.
“Elka Suspension is very pleased to join forces with Liberty Spring. The acquisition will strengthen the company’s position as a global force in the suspension industry, to the benefit of our clients and partners,” said Martin Lamoureux, President of Elka Suspension.
“Liberty Spring is proud to welcome Elka Suspension to the family. By combining the exceptional talent of Liberty Spring and Elka Suspension, we believe we can better support our clients’ growth initiatives,” said Mathieu Ouellet, President and CEO of Liberty Spring.
“Desjardins Capital is proud to be a part of Liberty Spring’s acquisition initiative and help this Quebec flagship strengthen its position as a leader,” stated Marie-Hélène Nolet, COO of Desjardins Capital. “By acquiring this suspension system manufacturer, Liberty Spring will be able to diversify its offer and enter a new, highly coveted market. This partnership is in line with Desjardins Capital’s mission of maintaining Quebec ownership of SMEs and supporting their growth.”
“By supporting this acquisition, we are demonstrating our confidence once again in Liberty Spring and its growth strategy. Our team is proud to enable two Québec companies to join forces in order to better seize opportunities in the automotive and recreational tourism industries and continue to make their mark through innovation,” says Guy LeBlanc, President and CEO of Investissement Québec.
About Desjardins Capital
Nearly 45 years strong, Desjardins Capital has a mission to value, support and nurture the best of Quebec entrepreneurship. With assets under management of C$2.6 billion as of December 31, 2020, Desjardins Capital helps contribute to the longevity of some 550 companies, cooperatives and funds in various sectors from across Quebec. In addition to helping create and maintain more than 80,000 jobs,* this subsidiary of Desjardins Group provides entrepreneurs with access to a large business network that supports business growth. For more information, visit the Desjardins Capital website.
*Data as at December 31, 2019
About Investissement Québec
Investissement Québec’s mission is to play an active role in Quebec’s economic development by spurring business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province’s administrative regions, the Corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also provides a wide range of consulting services, including technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists Quebec businesses with export activities.