Montreal-based La Coop fédérée (LCF) on Oct. 30 announced that four financial institutions – Caisse de dépôt et placement du Québec (CDPQ), the Fonds de solidarité FTQ, Fondaction, and Desjardins Capital – will invest C$300 million in the company.
The investment will take the form of preferred shares, the company said, and the amounts invested will be paid into the share capital of LCF. The proceeds will be used to finance the capital acquisition and capital investment projects of the company and its divisions resulting from LCF’s 2019-2022 strategic goals.
“La Coop fédérée has experienced unprecedented growth in recent years, consolidating its leading position in the agri-food and retail sectors in Quebec and Canada,” said Gaétan Desroches, La Coop fédérée CEO. “This investment by these reputable financial institutions that is being announced today is not only a great sign of confidence in our organization, but also in the cooperative business model.”
LCF ranks as the largest agri-food enterprise in Quebec and the 24th largest agri-food cooperative in the world, with more than 120,000 members, 14,000 employees, and annual sales of C$6.5 billion. Including its nearly 60 affiliated cooperatives, LCF has some 19,000 employees and consolidated revenues of C$9.5 billion, contributing nearly C $4 billion to Canada’s GDP, providing federal and provincial governments with C$1 billion in annual tax revenues, and generating more than 35,000 full-time jobs.
LCF’s activities are divided into three divisions: Olymel SEC (under the Olymel, Flamingo, Lafleur, Aliments Triomphe, and Pinty’s banners), Sollio Agriculture (under the La Coop, Elite, Agrocentre, Agrico, Agromart, and Country Stores banners), and Groupe BMR Inc. (under the BMR, Unimat, Agrizone, Potvin & Bouchard, The Shop, and Country Stores banners).
“The agri-food industry, at the very heart of people’s day-to-day life, is an important driver for Québec’s economy,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ. “This investment will allow La Coop fédérée, one of the world’s largest agri-food cooperatives, to pursue its growth strategy while generating stable revenues for our depositors over the long term.”
CDPQ is a long-term institutional investor that held C$326.7 billion in net assets as of June 30, 2019. The Fonds de solidarité FTQ had net assets of C$15.6 billion as of May 31, 2019. Fondaction manages assets in excess of C$2 billion, and Desjardins Capital has assets under management of C$2.5 billion in various sectors across Quebec.
“Desjardins Capital has been a financial partner of La Coop fédérée for almost 15 years and is proud to have been one of their first equity partners. This brings our total investment up to $100 million in preferred shares,” said Luc Menard, CEO of Desjardins Capital. “This partnership supports vibrant rural communities in Quebec and across Canada.”