The Fonds de solidarité FTQ and the Caisse de dépôt et placement du Québec (CDPQ) have announced that they have entered into exclusive negotiations with the French company Bonduelle with a view to acquiring, in equal shares between them, 65% of Bonduelle Americas Long Life (BALL).
With sales of $943 million for 2020-2021, BALL is dedicated to processing and marketing canned and frozen vegetables in the United States and Canada. Its products are sold in mass distribution for the retail trade and catering, mainly in private label, third-party brands as well as with its own brands such as Arctic Gardens and Del Monte.
The partial sale project follows the strategic review of the Bonduelle Group’s activities announced in September 2021. For the CEO of the French company, Guillaume Debrosse, the entry into the capital of the Fonds de solidarité FTQ and the CDPQ would allow BALL “to continue its development in a constantly consolidating North American market and to finance its investments for growth and profitability, without new allocations of resources by the Bonduelle Group”, he indicated in a press release.
The Fonds de solidarité FTQ believes that this transaction, the amount of which remains “confidential”, will become one of the most significant in the Quebec food industry.
“This is a key transaction for Quebec and the regions,” said Dany Pelletier, Senior Vice-President – Private Placements and Impact Investments at the Fonds de solidarité FTQ, in an interview with Agence QMI.
“This transaction fits well into a sector in which we have been investing for a long time,” added Mr. Pelletier, specifying that the Fund’s participation comes on top of investments of nearly $1.3 billion in agrifood. .
The acquisition of a stake in the North American activities of the “growing” company would also make it possible to “keep the head office in Brossard”. The company moved its premises in February 2022 to Brossard, and has approximately 180 employees.
For its part, the CDPQ said it was proud “to become a shareholder of one of the main food players in North America” and wishes to “consolidate its leading position in Canada and further develop the American market”, said Kim Thomassin, First Vice-President and Head, Quebec at the CDPQ.
The closing of the transaction could take place subject to obtaining the authorizations of the competent regulatory authorities and the lifting of the usual conditions precedent.
