Desjardins Capital takes a slice of Cegerco to back succession

Cegerco is a Chicoutimi-based general contractor focused on commercial, institutional, and industrial buildings, civil engineering projects.

  • Cegerco, employs more than 300 people at its Chicoutimi headquarters and Montreal office
  • Cegerco’s founder Jeannot Harvey to gradually cede control over firm to a group of management employees in Sagueney 
  • Desjardins to support Cegerco execute a growth plan to up its annual revenue by 20%

Desjardins Capital has picked up minority stake in Cegerco, a general contractor focused on commercial, institutional, and industrial buildings, civil engineering projects.

The deal is aimed at supporting the company’s succession plan.

Cegerco, employs more than 300 people at its Chicoutimi headquarters and Montreal office. The company provides its clients specialized products that can complete complex projects with a high degree of control over operations, costs and deadlines.

Cegerco’s founder Jeannot Harvey said he wants to gradually give up control over the firm to a group of management employees in the region.

“We’re very proud that Desjardins Capital is supporting us in our goal of preparing the next generation of company leaders as we continue to achieve sustained growth in our future revenues,” said Jean-François Coudé, Cegerco’s general director. “This partnership will assure the new leaders that the Quebec company can remain profitable in the years to come.”

Further, Desjardins will support Cegerco execute a growth plan to scale up its annual revenue by 20 percent and has allowed the business to continue its operations from Saguenay-Lac-Saint-Jean.

“Implementing a corporate succession plan is a crucial step in the growth of a business,” said Marie-Hélène Nolet, chief operating officer of Desjardins Capital. “We know that the construction industry is competitive and vulnerable to economic ups and downs, but we’re confident that Cegerco’s positioning and reputation in its market will allow it to outperform and achieve its goals.”

Desjardins Capital, founded in 1974, is the private equity investment arm of Desjardins Group, a Canadian financial services cooperative. The firm invests in small and medium-sized businesses in Quebec.