The Bonduelle group has announced that it is in exclusive negotiation with the institutional investors of the Solidarity Fund QFL and the Caisse de dépôt et placement of Quebec (CDPQ), for the acquisition, in equal shares between them, of 65% of Bonduelle Americas Long Life (BALL), based on a 100% enterprise value of 850 million Canadian dollars (approximately 625 million euros), or a 2020-2021 EBITDA multiple of 8.2x.
With a revenue of 943 million Canadian dollars for 2020-2021, BALL processes and markets canned and frozen vegetables in the United States and Canada, for mass retailers and the catering industry, mostly under private label, third-party brands and its own brands such as Arctic Gardens and Del Monte.
This partial acquisition project comes after the strategic review of the activities of the group, especially BALL, announced in September 2021. The objective is to allow the group to further deploy its activities, especially with the brands, in line with its strategic priorities and its ambition of sustainable growth with positive impact.
“Entering into the capital of CDPQ and the Solidarity Fund QFL would enable BALL to continue to grow on a North-American market in constant consolidation and to finance its investments for growth and profitability, without any new allocation of resources by the Bonduelle group. As a minority shareholder, the group will benefit, in the long term, from the value created by this activity by up to 35%,” explains Guillaume Debrosse, CEO of the Bonduelle group.
“The Solidarity Fund QFL is proud to be building this partnership in order to carry out this structuring transaction for the agrifood sector of Quebec. The transaction, which involves Bonduelle Americas Long Life, the Fund and its partners, will become one of the most significant for the Quebec food sector. It will allow the company to continue to expand in North America, while maintaining its crucial headquarters in Quebec. The Fund’s participation in this transaction adds to the historical investments of nearly 1.3 billion Canadian dollars in the agrifood sector,” explains Dany Pelletier, senior vice-president - Private Equity and Impact Investments - at the Solidarity Fund QFL.
“CDPQ is especially proud to become a shareholder of one of the main players of the food industry in North America, whose social headquarters will be established here, in Brossard,” claims Kim Thomassin, senior vice-president and Quebec manager of the CDPQ. “Together with our partners, we want to pursue the ambitious expansion plan undertaken by Bonduelle Americas Long Life in order to consolidate its leading position in Canada and to further develop in North America.”
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