French company Bonduelle has entered into exclusive negotiations with Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ, with a view to these investors acquiring, in equal shares between them, 65% of Bonduelle Americas Long Life (BALL).
BALL processes and markets canned and frozen vegetables in the United States and Canada, in distribution for the retail and foodservice, primarily private label and third-party brands.
BALL reported a turnover of C$ 943 million (€695 million) between 2020 and 2021.
Growth And Profitability
Commenting, Guillaume Debrosse, CEO of Bonduelle said, "The transaction with the Fonds de solidarité FTQ and CDPQ would allow BALL to pursue its development in a North American market that is consolidating and to finance its growth and profitability investments, without any new allocation of capital by the Bonduelle Group.
"As a minority shareholder, Bonduelle will ultimately benefit from 35% of the value created by this business."
Elsewhere, Dany Pelletier, executive vice-president of investments at Fonds de solidarité FTQ said, "The Fonds de solidarité FTQ is proud to build this partnership to accomplish this structuring transaction for the Quebec agri-food sector.
"The transaction involving Bonduelle Americas Long Life, the Fonds and its partners will become one of the most significant in the Quebec food industry. It will allow the company to continue its North American expansion. The Fonds participation in this transaction is its investments of nearly C$ 1.3 billion in agri-food industry".
In addition, Kim Thomassin, executive vice-president and head of Québec at CDPQ said that the investment firm is "especially proud to become a shareholder of one of the principal players in the North American food industry".
CDPQ is a global investment group, which manages funds for public retirement and insurance plans.