Funding from Capital régional et coopératif Desjardins and La Caisse de dépôt et placement du Québec allows Telecon Group to become a Canadian leader in telecom infrastructure solutions.
- Acquisition of Netricom’s Engineering Services division raises Telecon Group’s employee base from 1,300 to over 2,100 in eight Canadian provinces
- Renewed CRCD and La Caisse partnership helps to expand company’s market presence across Canada
- Transaction made possible through additional investments of $15 million by Capital régional et coopératif Desjardins (CRCD) and $7 million by La Caisse de dépôt et placement du Québec (Caisse)
- CRCD, a publicly traded fund managed by a Desjardins Group entity, remains majority shareholder of Telecon Group
- Telecon Group keeps head office in Trois-Rivières, Québec
Montréal, April 9, 2014 – Thanks to funding from Capital régional et coopératif Desjardins (CRCD) and La Caisse de dépôt et placement du Québec (La Caisse), Groupe Telecon, headquartered in Trois-Rivières, has acquired the engineering services division of Netricom. The transaction allows Telecon Group to deliver to its clients a modular or comprehensive offering of integrated telecommunications and power infrastructure services including design, location of utilities, construction, installation, repair and maintenance. In this transaction, CRCD and La Caisse reinvested $15 million and $7 million respectfully, for a total investment of $49 million and $30 million.
Now a Canadian leader in its industry
By acquiring this division of Netricom — a top quality provider of professional and technical engineering of wireline or wireless network services — Telecon Group stretches its presence coast to coast. Over 800 highly qualified Netricom employees will now join Telecon Group, raising the Group’s total headcount to 2,100. The workforce spans eight Canadian provinces: Québec, Ontario, Alberta, British Columbia, Nova Scotia, New Brunswick, Saskatchewan, and Newfoundland and Labrador.
According to Telecon Group President and CEO André Héroux, “This transaction confirms our leadership position in the Canadian telecommunications and power infrastructure industry. We’ll stand out from the competition thanks to our ability to deliver turnkey services to our clients nationwide through a modular or comprehensive offering of integrated telecommunications and power infrastructure services, including design, location of utilities, construction, installation, repair and maintenance.”
In a video message to Telecon Group employees and clients, Mr. Héroux applauded the exceptional contribution from his two key shareholder partners over the past three years. “In 2011, the investment made by Capital régional et coopératif Desjardins and La Caisse de dépôt et placement du Québec set in place Telecon Group’s long-term succession plan. They literally allowed us to thrive as a Canadian leader. We’re proud to have them as our strategic partners to fulfill our ambition of building a country-wide footprint to double our earnings in three to five years.”
Capacity-building effect of patient capital provided by the Caisse and CRCD
According to Marie-Claude Boisvert, COO at Desjardins Business, Capital régional et coopératif, “Our mission is to help SMEs become the Bombardiers of tomorrow. And Telecon Group perfectly represents the kind of organization that CRCD strives to support. Back in 2011, as majority shareholder, CRCD knew that Telecon Group had the potential to become a major Canadian player in its industry. Knowing that today it has achieved this goal is a source of great pride for us and some 100,000 CRCD shareholders in Québec.”
“Through this investment, La Caisse expands Telecon’s country-wide presence, enabling it to become one of the leading players in its industry,” said Normand Provost, Executive Vice-President, Private Equity at La Caisse de dépôt et placement du Québec. “La Caisse has consistently supported Telecon in its growth over the past three years. In particular, in 2011 it supported a transfer of the business to a high-performing executive team capable of managing its rapid expansion.”
About Telecon Group
Headquartered in Trois-Rivières with its administrative centre in the Pointe-aux-Trembles area of Montréal, Telecon Group has been offering turnkey solutions as well specific and dedicated design, location of utilities, construction, maintenance and repair services for telecommunications networks since 1967. With business places in eight Canadian provinces, Telecon Group has customers in major players in the telephony, cable television and Internet industries, as well as telecommunications and power network operators. Prior to the acquisition announced today, the company had over 1,300 employees, including nearly 900 in Québec. In 2011, Capital régional et coopératif Desjardins and La Caisse de dépôt et placement du Québec became shareholders through a $60 million investment in Telecon Group. (www.telecon.ca)
About Capital régional et coopératif Desjardins
With over 100,000 shareholders and $1,471 million in net assets, Capital régional et coopératif Desjardins (CRCD) is a public company managed by Desjardins Business Capital régional et coopératif. CRCD contributes to Québec economic development through several levers developed with its manager, with CRCD as the driving force. These levers form CRCD’s entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 360 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain 47,000 jobs. (www.capitalregional.com)
About La Caisse de dépôt et placement du Québec
La Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2013, it held $200.1 billion in net assets. As one of Canada’s leading institutional fund managers, La Caisse invests in major financial markets, private equity, infrastructure and real estate, globally. (www.lacaisse.com)