ONCAP, Caisse de dépôt to back merger of EnGlobe, LVM

EnGlobe Corp and LVM Inc have agreed to combine in a bid to create the largest Québec-based provider of integrated environmental and technical services. The deal, which is expected to close in the second quarter, is being led by Canadian private equity firm ONCAP Management Partners with the support of the Caisse de dépôt et placement du Québec. The Québec City-based EnGlobe is a portfolio company of ONCAP, the mid-market platform of Onex Corp. ONCAP made an initial investment in EnGlobe in 2006, and subsequently partnered in the company’s acquisitions and its go-private transaction in 2011. EnGlobe is also a portfolio company of Canadian specialty finance firm Wellington Financial LP. LVM has its headquarters in Laval.


LVM and EnGlobe Agree to Combine Their Businesses

MONTRÉAL, QUÉBEC–(Marketwired – April 9, 2014) – LVM Inc. (“LVM”), a leading Canadian geotechnical, materials and environmental engineering firm, and EnGlobe Corp. (“EnGlobe”), a leading integrated environmental services firm, have agreed to combine their businesses in a transaction led by ONCAP Management Partners (“ONCAP”) and supported by La Caisse de dépôt et placement du Québec (“La Caisse”). Combining these two complementary businesses will create the largest Quebec-based provider of integrated environmental and technical services, and one of the leading firms in Canada and internationally. The transaction is expected to close in the second quarter of 2014 and is subject to customary closing conditions.

“This transaction is a unique opportunity to ensure LVM’s continued growth and development for our employees and shareholders. We are privileged to work with such high-quality partners who share our vision and enthusiasm for the future,” said Mr. Benoit Godin, President of LVM. “We will become a major player in the Canadian market following the closing of today’s announced partnership, and we will continue to pursue the many new growth opportunities in front of us.”

“We are very enthusiastic about this partnership, which represents a unique opportunity to increase market share and add significant complementary expertise,” said EnGlobe President and CEO, Mr. Denys Turcotte. “It is a major milestone in our journey towards becoming a true international leader in environmental and technical services and extending our capabilities to respond to our customers’ needs.”

“With this investment, La Caisse is participating in the creation of a major Québec leader in its sector,” said Mr. Normand Provost, Executive Vice-President, Private Equity, at La Caisse. “Through this transaction, the two complementary companies will be able to achieve their full potential and expand nationally and internationally.”

“This is a significant opportunity for everyone involved,” said Mr. Gregory Baylin, Managing Director at ONCAP. “We are delighted to have the occasion to once again partner with La Caisse to build a great Quebec-based business.”

Although the agreement is definitive, the completion of the transaction will take place after the receipt of necessary approvals. During this period, the two companies will continue to provide the same high quality service their customers have come to expect.

About LVM
Headquartered in Laval, LVM is a leader in providing specialty geotechnical, materials and environmental engineering services. LVM is a leader in servicing the infrastructure sector and is currently participating in 8 of the 10 largest infrastructure development projects in Canada. LVM employs approximately 1,400 people and has offices in 41 cities across Canada. For more information on LVM, visit its website at www.lvm.ca.

About EnGlobe
Headquartered in Quebec City, EnGlobe is a leading integrated environmental services firm that treats, reuses or recovers contaminated soils, manages and beneficially reuses organic waste materials, and provides inspection and calibration services for fuel tanks and storage systems. EnGlobe employs approximately 400 people in Canada, France, the U.K. and Israel and operates through various Canadian corporate divisions and subsidiaries being Biogenie, Celtic Technologies, Solution, GSI Environment, Les Composts du Québec and Tanknology. For more information on EnGlobe, visit its website at www.englobecorp.com.

ONCAP is the mid-market private equity platform of Onex Corporation. ONCAP, in partnership with operating company management teams, invests in and builds shareholder value in North American mid-sized businesses that are leaders in their defined market niche and possess meaningful growth potential. ONCAP has invested in 17 platform companies in a variety of industries in North America, including a number of engineering-centric businesses. For more information on ONCAP, visit its website at www.oncap.com.
With offices in Toronto, New York and London, Onex is Canada’s oldest and most successful private equity firm. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $19 billion of assets under management, including $6 billion of Onex capital, in private equity, credit securities and real estate. Onex invests its capital directly and as the largest limited partner in each of its funds including ONCAP.
Onex’s businesses have assets of $44 billion, generate annual revenues of $33 billion and employ approximately 232,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com.

About La Caisse de dépôt et placement du Québec
La Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2013, it held $200.1 billion in net assets. As one of Canada’s leading institutional fund managers, La Caisse invests in major financial markets, private equity, infrastructure and real estate, globally. For more information on La Caisse, visit its website at: www.lacaisse.com.

Andre Renfer
Vice President

Georges Szaraz
Senior Vice-President
450-929-4949, ext. 3236

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