Colabor acquires meat processor and distributorComments Off
Boucherville, Que. – Colabor Group Inc. has acquired a meat processor and distributor based in Quebec.
T. Lauzon Ltd. distributes Cargill beef brands such as Angus Pride and Sterling Silver. It also produces and processes protein products throughout Quebec and Ontario.
The transaction is valued at approximately $15 million and is expected to close March 4.
To fund the acquisition Colabor entered into an agreement with the Caisse de dépôt et placement du Québec, a financial institution that manages funds primarily for public and private pension and insurance plans.
The Caisse announced a $15 million equity investment in Colabor, which combined with an additional $15 million equity investment on a bought deal private placement basis by National Bank Financial, is part of Colabor’s expansion plan.
“Colabor’s expansion plan is notable for a series of acquisitions it has made over the last few years,” says Normand Provost, executive vice-president, Private Equity at the Caisse.
“By collaborating in the financing of Colabor, the Caisse is taking part in the growth of a Quebec company that plays a major role in its industry.”
T. Lauzon operates a recently renovated 68,000-sq.-ft. federally approved plant near Montreal. Colabor says it will operate the facility on a lease.
In a story on AlbertaFarmExpress.ca, Claude Gariepy, Colabor’s CEO, says: “The strategic acquisition of T. Lauzon positions Colabor as a leader in protein products in Quebec and provides a strong platform to increase our presence in Ontario.”
The deal, he adds, is “complementary and synergistic” to Colabor’s own fresh and frozen beef, pork and poultry distribution business, Viandes Decarie, and “will improve Colabor’s ‘centre-of-the-plate’ product offering.”
Decarie, which is based in Anjou near Montreal and became part of Colabor in late 2011, ships throughout Canada and to the U.S., Mexico, China, Korea, Australia, Dubai and Russia, says AlbertaFarmExpress.ca.
T. Lauzon was established in 1892 and owns Au Petit Goret, which specializes in smoked pork products; Levitts, which specializes in smoked and cooked beef products; and G.Lauzon, which is one of the last beef carcass distributors in Montreal.
Colabor distributes 50,000 products to 25,000 institutions and businesses in Quebec, Ontario and Atlantic Canada. It began in 1962 as a buying group and in 2005 became a publicly traded company.