Quebec’s largest agri-business co-operative has secured a C$200 million ($153 million; €134.5 million) investment from a consortium of investors including the National Bank of Canada and the $1.5 billion pension fund Fondaction.
La Coop fédérée, which is Quebec’s largest agri-food enterprise, with annual revenues of $6.3 billion, and the only agricultural co-operative active across Canada, said the funds raised will be used for acquisitions and capital investment. The other investors were Québec development capital groups Fonds de solidarité FTQ and Capital régional et coopératif Desjardins.
“The Fonds de solidarité FTQ identified the agri-food sector as a centre of excellence for the Québec economy and is committed to investing more in this area. Its renewed support for the growth of La Coop fédérée, which will begin its global expansion, fits perfectly into this approach,” said Gaétan Morin, chief executive of the Fonds de solidarité FTQ.
The investment is to be made in two installments, with the first having been made and the second tranche to come before the end of 2018. The National Bank of Canada has contributed C$90 million, the Fonds de solidarité FTQ C$45 million, Fondaction C$35 million and Capital régional et coopératif Desjardins C$30 million.
The C$12.2 billion Fonds de solidarité FTQ, Capital régional et coopératif Desjardins and Fondaction had previously backed the co-operative in 2012 and 2013 with investment of C$155 million.
Founded in 1922, La Coop fédérée represents more than 90,000 members in nearly 70 co-operatives with operations across Canada.