Montréal, September 4, 2008 – Capital régional et coopératif Desjardins announced today that it is supporting a management buyout of Boutique Le Pentagone inc. This $11 million buyout will keep ownership of the company in the area it was founded. The investment bridges two generations of entrepreneurs, enabling the company's founders to step down while safeguarding their assets and the current management team to take the helm. Founded in 1974, Boutique Le Pentagone distributes and designs private labels under three banners: Pentagone, F17 and LÖV. In three decades, Pentagone has built a solid reputation among apparel industry players and its client base. The company currently employs nearly 750 people in 72 boutiques across Québec and New Brunswick.
"We're very proud to give Boutique Le Pentagone our third vote of confidence," stated Yves Gagné, Vice-president, Major Investments and Company Buyout at Desjardins. "It was actually my colleague Regional Manager Michel Leclerc in Lower St. Laurence who was behind the first regional investment deal with this company in 1995." Yves Gagné added that Capital régional et coopératif Desjardins will not be in charge of operations of Boutique Le Pentagone. "We're providing financial and strategic support to an experienced and visionary management team. We know the organization's leaders well and have been keeping close tabs on its development and growth. Given our familiarity with the issues surrounding such a buyout, it was second nature for us to put together a financial package perfectly tailored to the situation," said Mr. Gagné.
Founding entrepreneurs Charles Albert and Jean-Guy Ouellet are delighted with the turn of events. "What we spent 30 years building is going to stay on in our region and elsewhere with a solid, dynamic team with the skills to develop Boutique Le Pentagone." In addition to the financing package, the company's founders are particularly satisfied with the respect Desjardins has demonstrated for their corporate culture. "Our management style has always focused on people. Our organization has become what it is today because of the people who work with us. It's crucial to respect all of these pioneers because without them, none of this would've been possible."
Yves Gagné stressed the importance of proper preparation for Québec business transfers. In this respect, Mr. Gagné underscored the great care and attention to detail of the founders of Boutique Le Pentagone in preparing this key stage in a company's lifecycle. "These entrepreneurs have been organizing and preparing their teams for this event for over two years. They have shown great openness, and their goals regarding operational continuity have been very clear. In particular, they expressed their desire to keep their head office in the area. Their commitment to a smooth property transfer benefited all involved," stated Mr. Gagné.
Since its inception, Capital régional et coopératif Desjardins has supported nearly 60 companies with business transfers. "Such a comprehensive offering as Desjardins' giving entrepreneurs a single window to structure these transactions cannot be matched, a fact that a number of satisfied Québec entrepreneurs can already vouch for," concluded Yves Gagné.
Capital régional et coopératif Desjardins
Founded in 2001, Capital régional et coopératif Desjardins is a publicly traded company managed by Desjardins Venture Capital. With over 123,000 shareholders, the Company contributes to Québec's economic development while driving the growth of cooperatives and the resource regions. Capital régional et coopératif Desjardins currently supports 200 companies and cooperatives in various industries spanning all Québec regions. (capitalregional.com)
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For further information:
Danièle Routhier
Manager, Public Affairs
Desjardins Venture Capital
514-281-2211
daniele.routhier@dcrdesjardins.com
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