Novacap Industries and Fonds de solidarité FTQ Acquire IPL Inc.

MONTREAL, Oct. 18 /CNW Telbec/ - As part of a business transfer, private equity firm Novacap Industries and Fonds de solidarité FTQ (the "Fonds") are investing, respectively, $32.5 million and $37.5 million to acquire IPL Inc., a leading North-American manufacturer of moulded plastic products. The three Métivier brothers, majority shareholders until now, are selling their interests to these two partners in order to ensure the company's future.

Founded in 1939, IPL employs roughly 900 people and manufactures and markets over 400 products. Its four plants are located in Saint-Damien-de-Buckland, Saint-Lazare and Lawrenceville, Quebec, and in Edmundston, New Brunswick. In particular, IPL designs packaging containers and handling crates for the agri-food, chemical, forest products, petrochemical, telecommunications, construction and integrated waste management industries. It also offers high-tech value-added custom moulding services to the transport, defence, maple sugaring industries as well as for various industrial uses.

"The Métivier family has invested a great deal in the development of this company and we are very proud of its success since its founding in 1939. However, it's now time for us to sell the company," said Julien Métivier, IPL's outgoing Board chairman. "We're very pleased that IPL is being bought by the Novacap Industries and Fonds de solidarité FTQ consortium because we know that these two Québec funds care about creating jobs here at home and helping local companies. So, we're confident that IPL will continue to grow."

"Over the last 70 years, the various generations of the Métivier family have worked to build a solid, well diversified company with a presence across North America and hundreds of employees. We're proud to take over this great company and contribute to its continued growth. And we're pleased to be partnering in this transaction with a solid financial institution such as the Fonds de solidarité FTQ," stated Jacques Foisy, Novacap Industries's president and managing partner.

"As a result of its strong focus on research and development, IPL is known for its innovative and diverse products, as well as for its state-of-the-art facilities and equipment. This is why we are happy to join forces with Novacap Industries to back this successful company now and down the road. We already have a plan in mind, whereby growth will either be achieved organically, by optimizing production, or through acquisitions on the U.S. market," explained Gaétan Morin, Executive Vice-President, Investments at Fonds de solidarité FTQ.

About Novacap
With $790 million in assets under management, Novacap is one of Canada's leading private equity  firms. Novacap focuses its activities in two major sectors: Novacap Industries invests in middle market manufacturing and services companies that have the potential of becoming leaders in their industry and Novacap Technologies invests in the information and communications technologies sector.  Since 1981, its partnership strategy has helped over 50 companies accelerate growth and maximize value. Novacap is one of North America's top private equity firms with first-quartile returns in North America. For further information, visit www.novacap.ca.

About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $7.3 billion as at May 31, 2010, the Fund is a development capital investment fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 2,052 companies. With its 577,511 owner-shareholders, it has helped, on its own or with other financial partners, to create, maintain and protect 150,133 jobs. For more information, visit www.fondsftq.com.

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