The $50 million will be used to fund the acquisition of an Airbus subsidiary
The Fonds de solidarité FTQ invested $50 million to aerospace firm Héroux-Devtek for the acquisition of Airbus subsidiary Compañia Española de Sistemas Aeronauticos, S.A. (CESA).
Héroux-Devtek agreed to acquire CESA for $205 million. The deal will be funded with the the US$50 million investment from the Fonds de solidarité FTQ, which is under a seven-year unsecured subordinated term loan.
Following the acquisition, the Héroux-Devtek will have 1,697 employees worldwide, including 590 in Québec.
The injection of capital is a testament to Fonds de solidarité FTQ's vision of taking part in Québec's aerospace sector which has been making waves in the economy.
"With a series of key acquisitions since the mid-1980s, Héroux-Devtek has become a worldwide aerospace industry leader. This transaction will further strengthen the company's position in this sector of Québec's economy," Fonds de solidarité FTQ senior vice-president for Aerospace, Infrastructures, Services, and Transportation Jean Wilhelmy said.
In a report from Private Capital Journal, Héroux-Devtek CEO and president Gilles Labbé said the acquisition of CESA is a pivotal moment for the firm's international expansion.
"This transaction will allow us to increase our presence with Airbus, hence giving us better access to one of the largest aircraft manufacturers in the world," he said.
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Héroux-Devtek agreed to acquire CESA for $205 million. The deal will be funded with the the US$50 million investment from the Fonds de solidarité FTQ, which is under a seven-year unsecured subordinated term loan.
Following the acquisition, the Héroux-Devtek will have 1,697 employees worldwide, including 590 in Québec.
The injection of capital is a testament to Fonds de solidarité FTQ's vision of taking part in Québec's aerospace sector which has been making waves in the economy.
"With a series of key acquisitions since the mid-1980s, Héroux-Devtek has become a worldwide aerospace industry leader. This transaction will further strengthen the company's position in this sector of Québec's economy," Fonds de solidarité FTQ senior vice-president for Aerospace, Infrastructures, Services, and Transportation Jean Wilhelmy said.
In a report from Private Capital Journal, Héroux-Devtek CEO and president Gilles Labbé said the acquisition of CESA is a pivotal moment for the firm's international expansion.
"This transaction will allow us to increase our presence with Airbus, hence giving us better access to one of the largest aircraft manufacturers in the world," he said.
For more of Wealth Professional's latest industry news, click here.
Related stories:
New partnership primes Quebec SMEs for innovation
Quantius launches new fund
