Local businesses seize opportunities abroad
In the last five years, CDPQ’s business partners in Québec have completed over 200 acquisitions abroad. When the timing is right, the acquisition of a competitor or a complementary company can give an extra boost to growth.
There are conditions associated with a successful international acquisition strategy, whether it is aimed at expanding the company’s market, consolidating its supply chain or acquiring new technology.
Since CDPQ is building for the long term, it supports and guides businesses of all sizes that are ready to reinvent themselves, compete in global markets and realize their highest ambitions.
Strength through mobilization: the example of Eddyfi
Developer of inspection equipment and software for the industrial sector. Headquartered in Québec City. Over 300 employees. Clients in over 70 countries.
In March 2017, CDPQ entered into a partnership with Eddyfi to carry out its international growth plan. The company set itself an ambitious objective: attain $100 million in sales by 2020. To this end, Eddyfi hopes to acquire other niche technology companies to complete its line of products and services and take the lead in its industry.
Beyond the capital, the partnership with Eddyfi solidified the reputation of this young, growing company and its ability to complete major transactions, making it competitive with seasoned players in the global market. CDPQ’s interest also helped mobilize other financial partners to carry out the company’s growth plan; four acquisitions have been completed in the last two years, and the company is now well on its way to attaining $100 million in sales.
Strong financial plan: the example of Cirque du Soleil
Global leader in the entertainment industry. Performances in over 60 countries. Headquartered in Montréal. 4,500 employees from over 70 countries.
From its earliest days, Cirque du Soleil has been exporting its creations around the world. As Cirque du Soleil has grown, it has diversified its production formats from the Big Top to the stage, arenas and film production. Today, Cirque du Soleil is driven by an ambition to consolidate its leadership position in the global direct entertainment market, evolving from a company focused on the circus arts to one that creates, produces and stages spectator entertainment of all forms.
The company therefore continues to grow by acquiring other creative businesses that can complement its service offer. In February 2019, Cirque du Soleil Entertainment Group acquired The Works Entertainment, in part through financial support from CDPQ. This transaction represents the third major acquisition completed by the Cirque du Soleil Entertainment Group over the last two years, after Blue Man Group in 2017 and VStar Entertainment Group in 2018.
Well-planned integration process: the example of Solmax
Industry leader in the production of polyethylene geomembranes for industrial and environmental applications. Headquartered in Varennes. Products sold in over 60 countries.
When Solmax acquired the U.S. company GSE Environmental in December 2017, it attained its objective of becoming the global leader in its industry. With the transaction now complete, the work of integrating the business units has begun. CDPQ was able to collaborate in this crucial step in the business’s growth.
The company had taken on a major challenge: combine the strengths of each business unit, while transmitting Solmax’s culture to the new members of its team in order to form a single global entity. Solmax, which was #3 in its industry at the time of the transaction, has now acquired the industry leader, a business with over 500 employees based in Houston.
The management team at Solmax established a rigorous process that was implemented in 2018. CDPQ brought its network of experts on board to support the stakeholders involved in the various integration committees and to optimize the potential synergies between the business units. Communication proved to be one of the key success factors in aligning the teams, so much so that on February 11, 2019, the company officially changed its name from Solmax-GSE to Solmax.
In addition to the financial resources required for the transaction, the success of an acquisition project calls for mobilizing credible partners and implementing an integration strategy that will foster synergies between business units.
These examples, as well as several other recent investments, illustrate how CDPQ goes beyond dollars as a growth partner that actively participates in the development of strong Québec companies on global markets.