Agropur receives $300 million investment

A group of Québec institutional investors and bankers have announced a new investment of $300 million in Longueuil, Que.-based Agropur Cooperative.

This transaction is expected to help with the Canadian dairy cooperative act on its current development strategy, giving the organization more financial flexibility to grow in the future.

The investment, in the form of preferred units, is as follows:
• $150 million, Caisse de dépôt et placement du Québec (CDPQ)
• $37.4 million, National Bank
• $35.2 million, Fonds de solidarité FTQ
• $32.4 million, Investissement Québec
• $25 million, Capital régional et coopératif Desjardins (CRCD)
• $20 million, Fondaction CSN

These amounts build on the $470 million announced last year by these same financial partners, bringing their total investment in Agropur Cooperative to $770 million.

“With this new addition of long-term capital, Agropur Cooperative will be able to continue to grow and strengthen its position among the largest North American dairy processors,” says Marc Cormier, executive vice-president, Fixed Income at CDPQ. “This investment is an integral part of our strategy aimed at furthering the development of high-performing Québec businesses.” Following the first financing announced in December 2014, CDPQ’s stake in Agropur Cooperative is now at $300 million.

“As a key player in the agri-food industry, Agropur generates considerable positive spinoffs for the economic and social well-being of our communities. National Bank is proud to support its growth and development and that of many dairy farmers through this additional major investment,” says Yanick Blanchard, executive vice-president and cead of Corporate and Investment Banking at National Bank.

“Already a pillar of Québec’s agri-food sector, Agropur’s recent growth was based outside the province,” adds Normand Chouinard, executive vice-president, Investments, at the Fonds de solidarité FTQ. “Supported namely by the Fonds de solidarité FTQ, this growth contributed to the consolidation of Québec jobs at Agropur and its thousands of dairy producers. This demonstrates how job creation and consolidation right here in Québec is also a result of expansion beyond our borders. Today, we are proud to once again renew our confidence in this agri-food leader and to continue to support its growth.”