CPE News (6.27.2024) – Manac has closed a major $170 million loan financing with Investissement Québec, BDC and Desjardins.
The financing including $40 million from the Gouvernement du Québec ESSOR program, through its agent Investissement Québec, $30 million directly from Investissement Québec own funds. Desjardins and BDC are each contributing with loans of $50 million.
The funding, includes a $30 million refinancing operation designed to optimize Manac’s financial position, will serve as a catalyst for the company’s growth strategy, notably through the expansion and modernization of its largest manufacturing plant in Saint-Georges, Quebec, as well as the deployment of new sales and service centers in Quebec and elsewhere in Canada.
Founded by Marcel Dutil in 1966, Saint-Georges, Québec based Manac is the largest manufacturer of semi-trailers in Canada and a leading manufacturer of specialized semi-trailers in North America.
In October 2015, Marcel Dutil’s Placements CMI Inc. together with Caisse de dépôt et placement du Québec (CDPQ), Fonds de solidarité FTQ, Investissement Québec and Fonds Manufacturier Québécois II s.e.c., took Manac Inc. (formerly TSX: MA) private.
photo credit: Manac
News Release
Manac completes a $170 million financing
The financing will serve as a catalyst for the company’s growth strategy
SAINT-GEORGES, QC, June 27, 2024 /CNW/ – Manac, North America’s largest manufacturer of custom-built and specialized commercial trailers, is proud to announce the closing of a major $170 million financing with Investissement Québec, BDC and Desjardins. This financing, which includes a $30 million refinancing operation designed to optimize Manac’s financial position, will serve as a catalyst for the company’s growth strategy, notably through the expansion and modernization of its largest manufacturing plant, established since 1967 in Saint-Georges, Quebec, as well as the deployment of new sales and service centers in Quebec and elsewhere in Canada.
The company has secured loans totaling $170 million, including $40 million from the Gouvernement du Québec ESSOR program, through its agent Investissement Québec, and $30 million directly from Investissement Québec own funds. Desjardins and BDC are contributing with loans of $50 million each. This financial support will enable the manufacturing company to accelerate the innovative technological shift at its Saint-Georges plant, to consolidate its appeal as an employer of choice in the Chaudière-Appalaches region and maintain its position as the Canadian leader in the manufacture of commercial semi-trailers. These growth projects also include an expansion of the sales and service network to increase Manac’s presence within the freight transport industry across North America.
« We are grateful to all our partners for their continued confidence in our company. Our team is guided by an ambitious vision and a strong focus on continuous improvement. This new financing is an important element in supporting our objectives. It will enable us to adapt our St-Georges plant to the changes in semi-trailer dimensions permitted by regulation, improve our productivity by integrating innovative technologies, and broaden the scope of our offering by setting up new sales and service centers in Quebec and Canada. Maintaining an efficient, competitive manufacturing site for over 55 years in a highly cyclical industry is quite a challenge and requires the commitment of many partners. The project we have just initiated is designed to enhance our competitiveness and maintain the trust of our customers and partners for many years to come. », declared Mr. Charles Dutil, president and chief executive officer of Manac.
“Innovation and automation are critical for Québec companies to stay competitive. Our financial support will allow Manac, a true leader in its field, to modernize its facilities and ensure the growth of its operations throughout Québec and North America,” stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region.
About Manac
Founded by Marcel Dutil in 1966, Manac is the largest manufacturer of semi-trailers in Canada and a leading manufacturer of specialized semi-trailers in North America. Manac offers a wide range of vans, flatbeds and specialized semi-trailers, such as dump trailers, flatbeds, chassis as well as chip and log semi-trailers. Manac serves the heavy-duty trailer industry in the trucking, construction, energy, mining, forestry and agricultural sectors. Manac manufactures its trailers at plants in Saint-Georges, Laurier-Station and Val-des-Sources, Quebec; Penticton, British Columbia; and Oran, Missouri. Much more than a manufacturer, Manac offers its customers a growing network of sales and service centers and supports its customers throughout the product life cycle with financing services as well as maintenance and repair programs.
About Desjardins
Desjardins Group is the largest cooperative financial group in North America and the fifth largest in the world, with assets of $435.8 billion as at March 31, 2024. It has been named one of Canada’s Best Employers by Forbes magazine and by Mediacorp. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, its online platforms, and its subsidiaries across Canada. Ranked among the world’s strongest banks according to The Banker magazine, Desjardins has one of the highest capital ratios and one of the highest credit ratings in the industry.
À propos de BDC
As Canada’s bank for entrepreneurs, BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the country’s most innovative firms. We are one of Canada’s Top 100 Employers and Canada’s Best Diversity Employers. BDC was the first financial institution in Canada to receive the B Corp certification in 2013 and it is the B Corp movement’s national partner in Canada. For more information on BDC’s products and services and to consult free tools, templates and articles, visit bdc.ca or join BDC on social media.
SOURCE Manac Inc.
Nancy Jutras, Senior HR Marketing advisor, Manac Inc.: nancy.jutras@manac.com