Canadian agri-food business La Coop Fédérée has secured CAD 300 million ($229.1 million) in funding from four investors.
The company said the proceeds from the subscription will be used to finance its capital acquisition and capital investment projects and those of its divisions.
The investment has been made by Caisse de dépôt et placement du Québec (CDPQ), the Fonds de solidarité FTQ, Fondaction, and Desjardins Capital.
“La Coop Fédérée has experienced unprecedented growth in recent years, consolidating its leading position in the agri-food and retail sectors in Quebec and Canada,” said Gaétan Desroches, CEO of La Coop Fédérée.
“This investment by these reputable financial institutions that is being announced today is not only a great sign of confidence in our organisation, but also in the cooperative business model.”
Marc Cormier, head of fixed income at CDPQ, said: “The agri-food industry, at the very heart of people’s day-to-day life, is an important driver for Québec’s economy. This investment will allow La Coop Fédérée, one of the world’s largest agri-food cooperatives, to pursue its growth strategy while generating stable revenues for our depositors over the long term.”
Gaétan Morin, CEO of the Fonds de solidarité FTQ, added: “By supporting the growth of La Coop Fédérée, the Fonds de solidarité FTQ is also supporting the 120,000 members of La Coop Fédérée, mostly SMEs that help Québec’s regions prosper. This investment in unsecured capital by the Fonds, in partnership with other Québec-based institutions, contributes to Québec’s economic development and supports jobs.”
Founded in 1922, La Coop Fédérée represents more than 120,000 members, agricultural producers and consumers in nearly 60 cooperatives in several Canadian provinces. It employs more than 14,000 people and has sales of $6.5 billion.
Last year, the company secured a deal to acquire Standard Nutrition’s Canadian business.
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