GRYB Announces Acquisition of RAD Technologies, Dalkotech and Eco-trak
The Fonds de solidarité FTQ and CDPQ are making an equity investment in GRYB, a heavy equipment manufacturer in Victoriaville, to enable the company to pursue its expansion plan and acquire RAD Technologies, Dalkotech and Eco-trak.
These acquisitions, which will provide GRYB with a doorway to the OEM market as well as a high-tech product line (Eco-trak), are part of an important series of recent acquisitions that strengthens its position as an industry leader. The company has been growing rapidly, both organically and through acquisitions, with sales climbing from $3.5 million in 2015 to over $250 million today. The number of employees, which stood at 20 in 2015, will reach nearly 1,000 following the transaction.
“The Dalkotech/RAD group is pleased to become a part of this team of dynamic young Québec entrepreneurs. The continuity of the business and respect for family values were paramount in our search for a buyer. After more than 35 years in business for Dalkotech and more than 60 years for RAD Technologies, there are many opportunities to continue creating jobs in Québec and there will be even more due to the synergy that will be realized after the merger. GRYB will become a major player on the North-American attachment market”, said Jean-Guy Dalton, president of the Dalkotech/RAD Technologies group.
“The Dalkotech group has OEM expertise and the merger with GRYB will help it grow even faster. Its management’s values, business culture and humility are perfectly in sync with GRYB’s. We are also proud to be able to count on two first-rate investors to back our growth strategy. Since the beginning of the company, our goal has been to become a reference in the fastener market and each acquisition is a step further in that direction. All this is possible by taking good care of our employees and customers every day”, said Rémi Beaudoin, president of GRYB International.
“Dalkotech’s acquisition by GRYB will strengthen the positions of both companies. This deal, backed by the Fonds and other financial partners, will allow GRYB to innovate and break into new markets. The know-how developed in Victoriaville, Sherbrooke and Thetford Mines will therefore extend well beyond these three regions. We are proud of how far we’ve come since our investment in Dalkotech and we salute their commitment to remaining a Québec-based company”, said Dany Pelletier, Senior Vice-President, Private Equity and Impact Investing, at the Fonds de solidarité FTQ.
The Fonds régionaux de solidarité FTQ Centre-du-Québec will have a stake in the Fonds' financing.
“CDPQ is pleased to become a shareholder in this manufacturing leader, which now has a foothold throughout Québec, Ontario and the United States. Alongside a visionary and ambitious management team that has demonstrated its ability to generate growth both organically and through acquisitions, we intend to continue supporting GRYB with their expansion and diversification strategy”, said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. “GRYB is well positioned to capitalize on the growing infrastructure needs in North America.”
Several other financial partners played a very important role in this deal: BMO, with the support of NBC, TD, RBC and Export Development Canada, provided a credit facility while Investissement Québec, Fondaction and the Business Development Bank of Canada completed the financing. Note that this transaction is subject to normal closing conditions.
GRYB will celebrate its 15th anniversary in fall 2022. Proud of its recent acquisitions of Bateman Manufacturing in Ontario, Winkle Industries in Ohio and Serco Loaders in Minnesota, as well as the start-up of the Shearex plant in Roxton Falls, GRYB is pursuing its ambitious strategic growth plan both organically and through acquisitions.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ invests to build a better society by channelling the savings of its 734,580 shareholders into development and risk capital investments to help Québec transition to a green economy, to a human-centred world of work, and to a healthier society. The Fonds offers businesses unsecured financing and strategic support. With $18.3 billion in net assets as at November 30, 2021, the Fonds has supported more than 3,400 partner companies and over 247,000 jobs.
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public retirement and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2021, CDPQ’s net assets totalled CAD 419.8 billion. For more information, visit cdpq.com, follow us on Twitter or consult our Facebook or LinkedIn pages.
CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.
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For more information
Media contact +1 514 847-5493 [email protected]
Rémi BeaudoinPresident, GRYB
Jean-Philippe MauraisDivision Director, GRYB
Frédérique Lavoie-GamacheFonds de solidarité FTQ438-364-1596