Novatech Gets $16.7 Million Investment
The Caisse de dépôt et placement du Québec is acquiring a stake in Novatech Group Inc., investing $16.7 million (CDN) into the producer of doors and door components. The Montreal-based financial institution primarily manages funds for pension and insurance plans, with more than $150 billion in net assets.
With the transaction, Raymond Ouellette, chairman of Novatech's board of directors is decreasing his stake in the company, but retains his majority ownership, as well as position with the Quebec-based manufacturer. Harold Savard, who was named president and GM last year, has also increased his stake in the company, according to a letter sent to Novatech customers. Robert LaTour, VP of sales and marketing, and Luc Deschambeault, VP of finance and administration, remain shareholders, it is also noted.
“We are thrilled to be able to rely on the Caisse’s support while the company explores various growth projects and sets out to write a new chapter in its history,” say Oulette
“We are proud of the vote of confidence the Caisse has shown towards the management and successors through this investment," adds Savard. "This partnership will bring us closer to our goal of achieving excellence."
“Investing in Novatech, a Québec manufacturing leader with 30 years under its belt, is another way for the Caisse to contribute to the success of a Québec company,” states Normand Provost, Caisse executive vice president/private equity and COO.
“A number of Québec entrepreneurs will soon have to plan the transfer of their companies to the next generation of leaders," he continues. "The Caisse expects to continue to be a key player contributing to these companies’ growth while generating returns for its depositors.”
A Window & Door Top 100 Manufacturer, Novatech was founded in 1982 and today has a presence in more than 15 countries in the world, it reports. Based in Ste. Julie, Quebec, the company operates half a dozen subsidiaries with more than 500 employees.