Thrust Capital Partners acquires DCM Group – updated

CPE News

Updated on:

CPE News (12.8.2023) – Thrust Capital Partners (TCP), in partnership with Desjardins Capital, has acquired DCM Group Inc., a leading Quebec manufacturer primarily serving the aviation and aerospace sectors.

DCM Group is the second platform acquisition of Thrust Capital Partners Fund I L.P.

Thrust Capital Partners acquired DCM from Éric-Hertel Ledoux, Yves Martel and other shareholders. Investissement Québec (IQ), an investor in DCM, will retain its ownership stake. Jean-Charles Raillat, DCM’s CEO, and DCM management team will remain in their current roles. Raillat will join DCM board of directors.

Financial terms of the transaction were not disclosed.

St-Bruno-de-Montarville, Québec based DCM Group is a growing subcontractor of aerostructure components. DCM also manufactures ground support equipment (GSE) tooling and provides aircraft maintenance and welding services. DCM operates three divisions: Aerostructures, Maintenance Repair and Overhaul (MRO), and Ground Support Equipment /Electric and Testing. DCM Group has four sites in Québec and one in France.

In 2016, Ledoux led Sinters America, with the backing of IQ, acquired DCM Group with the merged company renaming as DCM.

photo credit: DCM Group

News Release

Thrust Capital Partners Acquires DCM Group, a Leading Quebec Aerospace Manufacturer

MONTREAL, Dec. 8, 2023 /CNW/ – Thrust Capital Partners (TCP), a Canadian private equity firm dedicated to the aerospace industry, is pleased to announce that it has acquired DCM Group Inc. (DCM) a leading Quebec manufacturer primarily serving the aviation and aerospace sectors. This transaction is the second platform acquisition of Thrust Capital Partners Fund I L.P.

TCP completed this acquisition in partnership with Desjardins Capital. Investissement Québec (IQ), who was already an investor in DCM, retains its ownership stake to continue to support the company’s growth.

Founded in 1987, DCM is a growing subcontractor of aerostructure components in the province of Quebec. DCM also manufactures ground support equipment (GSE) tooling and provides aircraft maintenance and welding services.

Jean-Charles Raillat, DCM’s CEO, and the management team will remain in their current roles. “Demain Commence Maintenant (Tomorrow Begins Today). This motto has never been more true than today as we announce the acquisition of DCM by an investor group led by TCP and supported by IQ and Desjardins Capital. There could not be a better shareholder group for DCM to support our ambitions, as well as those of our employees and the communities we operate in. I would like to thank the former shareholders and the board of directors for their confidence and contributions, and in particular our employees that have transformed this company. Tomorrow begins today: DCM 2.0” said Jean-Charles Raillat.

“DCM has a strong track record of growth through acquisition and integration that TCP wants to boost. Beyond providing capital, our extensive aerospace experience will also contribute to the success of this acquisition as DCM expands globally.” said Frédéric Loiselle, Partner at TCP.

“We are very proud to be associated with Thrust Capital Partners in this acquisition, enabling DCM Group to pursue its ambitions and growth, which is already well underway following the rigorous work of CEO Jean-Charles Raillat and everyone in his team.” said Nathalie Bernard, Chief Operating Officer of Desjardins Capital.

Norton Rose Fulbright Canada LLP, PricewaterhouseCoopers LLP and Ernst & Young LLP respectively served as legal, tax and financial advisors to TCP on this transaction, while Blue HF Legal LLP acted as legal and tax advisors to the Sellers.

About Thrust Capital Partners

Thrust Capital Partners is the first Canadian private equity fund dedicated exclusively to the aerospace industry supply chain. The fund is expertly managed by a seasoned team with unparalleled aerospace knowledge, boasting firm commitments totaling $77 million for its initial closing. It represents an ideal launching pad for driving the growth of SMEs in Québec and Canada and accelerating their development into global leaders.

About DCM Group

DCM Group is the result of the consolidation of the operations of seven companies. It operates three divisions: Aerostructures, Maintenance Repair and Overhaul (MRO), and Ground Support Equipment /Electric and Testing. DCM Group has four sites in Quebec and one in France.

About Desjardins Capital

Nearly 50 years strong, Desjardins Capital’s mission is to contribute to the prosperity of individuals and communities by investing in the growth of Quebec businesses. With assets under management of $3 billion as of June 30, 2023, Desjardins Capital contributes to the longevity of more than 770 companies, cooperatives and funds in various sectors of activity from all regions of the province. In addition to contributing to socio-economic development, productivity and the adoption of sustainable practices, this subsidiary of Desjardins Group offers entrepreneurs access to a broad business network, enabling them to be accompanied and supported in their projects.

SOURCE Thrust Capital Partners Management Inc.