Sylvain Tassé and Normand Doucet, a manager at Quadra Plast Inc., has acquired the company from owner Hubert Racine. The transaction closed in the summer 2019. Financial terms were not disclosed.
BDC Capital’s Growth & Transition Capital provided $1.2 million non-dilutive mezzanine funding in support of the transaction.
Founded in 1991 by Rachine and Guy Ross, Sainte-Thérèse, Québec based Quadra Plast specializes in the extrusion of custom PVC parts and serves a well-diversified customer base in several manufacturing sectors, including doors and windows, swimming pools, and bathtubs.
photo credit: Quadra Plast
Sainte-Thérèse company Quadra Plast changes hands with the help of $1.2 million in financing from BDC Capital
LAVAL and SAINTE-THÉRÈSE, October 31, 2019—Entrepreneur Sylvain Tassé and one of the company’s managers, Normand Doucet, acquired Quadra Plast, a PVC parts manufacturer in Sainte-Thérèse, Quebec, with the help of $1.2 million in financing from BDC Capital’s Growth & Transition Capital division. Founded in 1991, Quadra Plast specializes in the extrusion of custom PVC parts and serves a well-diversified customer base in several manufacturing sectors, including doors and windows, swimming pools, and bathtubs. Today, the company is at a turning point in its history: Going forward, growth will come from diversification of its products, which will come from innovations to its processes. Quadra Plast founder Hubert Racine will remain with the company for the next three years to ensure a smooth transition.
BDC Capital’s non-dilutive financing takes the form of a mezzanine loan whose repayment terms may vary according to the company’s cash flows; this gives it flexibility to adjust its payments based on economic cycles and growth opportunities. It complements the financing provided by the senior lender in this transaction, to which it is subordinated.
“I’d been looking to acquire a good company on the North Shore for quite some time. BDC Capital was a great help in allowing me to complete this transaction. I am extremely proud to be succeeding Hubert, thereby ensuring the continued existence of a solid Quebec company in my home town of Sainte-Thérèse,” said Sylvain Tassé of Quadra Plast.
This transaction was completed by Jean-Philippe Poissant and Philippe Lapierre, Directors, Growth & Transition Capital, at BDC Capital’s Laval office. BDC Capital knows Quadra Plast quite well, the company being a former customer. They were the ones who introduced Sylvain Tassé to Hubert Racine when they learned that he was looking to sell his company. “With his experience in management and marketing, Sylvain is capable of leading this great company to another level,” said Mr. Lapierre. “By being associated with a key employee such as Normand Doucet and surrounding himself with strong advisors, he maximizes his chances of fulfilling his vision of the future for Quadra Plast.”
About Quadra Plast
Quadra Plast has been a leader in polymer extrusion mouldings for over 25 years. Our experienced team sets us apart as being an innovative partner—much more than just a PVC provider. We consider our customers partners and encourage open and honest communication. As a result, we ensure that you get better service and promise you exceptional results.
Setting itself apart through its excellent customer service, our team of experts can win your trust by guiding you to the best solutions as you work toward completing your projects. Because each project is unique, we promise you that we will make adjustments based on your needs while providing you with the necessary advice. Your satisfaction is always our priority.
About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.