CDPQ and Agropur to launch $40M joint dairy investment platform

Caisse de dépôt et placement du Québec (CDPQ) and Agropur Cooperative have entered into an agreement for a new joint investment platform for businesses in the dairy industry.

The $40 million investment platform will be funded on a 50/50 basis and invest in innovative businesses specializing in dairy-related products and technologies.

The partnership will allow CDPQ to make the most of Agropur’s extensive operational knowledge of the agri-food sector, and Agropur to tap into CDPQ’s financial expertise in supporting small and medium-sized enterprises.

Caisse de dépôt et placement du Québec is major holder of Agropur preferred shares with $300 million investment.

In December 2014, CDPQ led a $470 million investment in the form of preferred units with $150 million investment and with participation of National Bank, Fonds de solidarité FTQ ($75 million each); Investissement Québec (IQ) ($65 million), Capital régional et coopératif Desjardins (CRCD) ($55 million ), and Fondaction CSN ($50 million). In December 2015, CDPQ invested another $150 million in a $300 million preferred share offering along with contribution of $37.4 million from National Bank, $35.2 million for Fonds de solidarité, $32.4 million from IQ, $25 million from CRCD and $20 million form Fondaction.

News Release

La Caisse and Agropur create a joint investment platform to help foster innovation in the dairy industry

Private Equity Montréal, February 14, 2018

In the context of Agropur’s annual general meeting, Caisse de dépôt et placement du Québec (la Caisse) and Agropur Cooperative (Agropur) announced that they would be setting up a new joint investment platform for businesses in the dairy industry.

The $40-million platform will be funded by the two partners on a 50/50 basis and invest in innovative businesses specializing in dairy-related products and technologies.

The focus will be on growing companies with high potential for solid financial performance, which are led by a solid management team and who have desmontrated that innovation is a core element of their business-model.

This opportunity will allow la Caisse to make the most of Agropur’s extensive operational knowledge of the agri-food sector, and Agropur to tap into la Caisse’s financial expertise in supporting small and medium-sized enterprises.

“Agropur is committed to leading the way in innovation. Through our forward-thinking efforts, we aim to anticipate the needs of our customers and consumers and create the dairy products of tomorrow. With this new platform, we are targeting innovation-oriented businesses that will help bring new vigour to the dairy industry. We are happy to partner with la Caisse on this initiative, which is the only one of its kind in North America,” stated Agropur CEO Robert Coallier.

“La Caisse is looking to play a role in transforming businesses operating in traditional industries by supporting those at the forefront of innovation. This platform will enable companies serving the agri-food sector — a key driver of the Québec economy — to obtain the funding necessary to stay at the cutting edge,” said Christian Dubé, la Caisse’s Executive Vice-President, Québec. “We are pleased to invest alongside Agropur, a major industry player that has successfully demonstrated its expertise in the field over the years.”

ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2017, it held $286.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

ABOUT AGROPUR COOPERATIVE

Agropur Cooperative, founded in 1938, is a North American dairy industry leader with sales of $6.4 billion in 2017. The Cooperative is the pride of the 3,290 members and 8,300 employees who pursue its vision every day: “Better dairy. Better world.” Agropur processes more than 6.1 billion litres of milk per year at its 39 plants across North America and boasts an impressive roster of brands and products including Natrel, OKA, iögo, BiPro, Agropur Grand Cheddar, Olympic, Farmers, Island Farms and Québon. Agropur’s head office is certified LEED Silver. agropur.com

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For more information

Media contact +1 514 847-5493 +1 866 330-3936 medias@cdpq.com

Véronique Boileau
Vice-présidente, Communications
Agropur coopérative
1 450 878-1844
veronique.boileau@agropur.com

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.