Le Marché Végétarien
Investment date: April 2009
Business description
- Regional chain of 11 food stores specializing in natural and bio products and fine gourmet foods. Operates a state of the art distribution center in Magog which currently operates at 35%-40% of its utilisation rate
Investment rationale
- Végétarien has a very sophisticated management team and information systems. Management team highly committed to the long-term value of the business.
- Highly fragmented $3 billion market in Québec with only 15 owners operating more than one store and no provincial market leader
- Fresh produce,premium bakery and organic markets are the fastest growing segments in the overall grocery market
Value creation opportunities
- In order to leverage the platform, the Company will make smaller tuck-in acquistions in contiguous markets
- Significant synergies available through overhead savings and increased purchasing power
Investment partners
- Private investors
- FONDACTION
- Management
Le Marché Végétarien
Regional chain of 11 food stores specializing in natural and biological products and fine gourmet foods.
OGILVY
Investment date: July 2010
Financial Partners
- Private investors
- BB Real Estate Investment Trust
- DEVIMCO
- Fonds Immobilier de Solidarité FTQ
OGILVY
A Quebec-based private investors group led by Mr.Jean-François Breton et Champlain Financial Corporation acquires the prestigious OGILVY Department store
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ORTHOFAB
Investment date: August 2005
Business description
- Design, develop, manufacture and sell high-end wheel chairs and other seating products with a 40% share of the Quebec market
- The company operates from its headquarters in Quebec City and also operates a network of service centers across the Province of Quebec
Investment rationale
- Positive industry characteristics, including increased market penetration potential resulting from private insurance companies assuming the cost of the wheel chair purchase
- Established 6-person research & development team
- Direct to consumer model, with a strong after-market service component
- Leader in the high-end wheel chair segment, with a 40% market share in Quebec
Value creation opportunities
- Currently in negotiation to acquire new distribution channel in Quebec and Ontario
- Implementing new reporting procedures and assisting the CFO in banking duties
- Recruited EVP from major global healthcare manufacturer to support existing management team
Investment partners
- Management
ORTHOFAB
Design, develop, manufacture and sell high-end wheel chairs and other seating products with a 40% share of the Quebec market
Pro Hockey Life
Investment date: March 2007
Business description
- Owns and operate a chain of 22 specialty hockey retail megastores in Québec, Ontario and Albert with organic growth to continue with many new store openings in key markets across Canada
Investment rationale
- Competition limited to small specialty retailers with limited selection and inventory and larger general concept retailers with limited expertise and narrow offerings
- Favorable industry dynamic within the hockey market
- Compelling store economics driven by strong relationships with key industry leading suppliers
- Opportunity to capture first mover advantage by penetrating new markets with superstore concept through aggressive roll-out strategy
- Recognized leader in hockey retail in Quebec offering the largest selection of equipment and accessories through a superstore concept
Value creation opportunities
- Recruited President and COO from McKinsey & Company where he led large cross-functional teams that implemented strategic and operational improvement mandates for several Fortune 500 companies, focusing on retail
- Created a growth plan that involved the opening of 22+ new stores across Canada over 5-year period under “superstore” platform
- Recruited SVP Operations from Canada’s largest sports retailer, where he managed growth from 35 to 100 locations, including P&L accountability
Investment partners
- Founder
- Private investors, including many of the original Golf Town investors
- Management
Pro Hockey Life
Own and operate a chain of 20 specialty hockey retail megastores in Québec, Ontario and Alberta, with organic growth to continue with many new store openings in key markets across Canada
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Neptune
Investment date: February 2008
Business description
- Design, manufacture and distribute a full suite of high-end bathroom fixtures in Canada and the U.S., with a primary focus on the renovation market
- Products sold through growing list of boutique stores as well as through general contractors
Investment rationale
- Significant operating leverage to be achieved from existing manufacturing facility which is currently running at 50% of capacity
- Target of high-end consumers combined with focus on the renovation market somewhat isolates the company from the housing and credit market woes
- Strong brand name in Quebec, with a growing presence in the rest of Canada and the U.S.
- Represents a strong platform to consolidate independent bathroom fixture manufacturers
- Goal is to consolidate market to position the company for the next strong economic cycle
Value creation opportunities
- Recruited president & CEO with a proven track record as a senior executive at the company’s largest Canadian competitor to drive domestic and international growth
- Market consolidation by acquiring direct competitors as well as those companies with complementary product offerings
- Penetration of $2 billion U.S. market is primary objective to be achieved through expansion of U.S. sales effort led by CEO’s extensive U.S. network
Investment partners
- Founders
- Private investors
- Management
Neptune
Design, manufacture and distribute a full suite of high-end bathroom fixtures in Canada and the U.S., with a primary focus on the renovation market
Dismed
Investment date: May 2006
Business description
- Offers a comprehensive range of 75,000 products from over 200 suppliers
- Serves over 2,500 clients across Québec, including all major hospitals and a large number of healthcare facilities and public clinics
- Largest distributor of medical supplies and equipment to hospitals and healthcare institutions in Quebec
Investment rationale
- Strong experienced management team in place
- Entrenchment in the Quebec governmental procurement process create natural barrier to entry for new entrants
- Strong strategic value as leading distributor of medical products across Quebec
- Strong demographic trends favouring strengthening demand for product offering; highly stable predictable cash flow streams
- State of the art physical distribution facilities with significant room for additional volume at little incremental cost
Investment partners
- Private investors
- Management
- Kruger Pension Fund
Successful exit
- Dismed was sold to FutureMed Healthcare Income Fund on June 30, 2008, generating a 34% IRR for the equity investors
Dismed
Largest distributor of medical supplies and equipment to hospitals and healthcare institutions in Quebec