Instar Asset Management has acquired Quebec-based infrastructure company Groupe Somavrac through a consortium that includes Investissement Québec and the Fonds de solidarité FTQ.

The partnership is intended to support continuity and long-term stewardship as Somavrac enters its next phase of growth, while maintaining its head office in Trois-Rivières, Que., and preserving more than 500 jobs across Quebec and Ontario.

“Groupe Somavrac was built with a deep sense of responsibility toward our employees, our partners, and the communities we serve,” said Marc Paquin, president and CEO of Somavrac. “After careful consideration of the company’s future, we selected Instar as the right partner to build on our legacy, preserve our culture, and support our people. With the support of Instar and its Quebec-based co-investors, we will safeguard more than 500 jobs, maintain our 12 divisions, and strengthen our presence in Quebec as we take the next step in our growth and continue playing a strategic role in the Quebec economy.”

Somavrac, founded more than 60 years ago by the Paquin family, operates 12 subsidiaries across 17 sites and serves sectors including mining, agriculture, pulp and paper, aluminum, cement, chemicals and water treatment. Paquin will remain CEO for a transition period and work with Instar to support continuity and identify his successor.

Instar is acquiring the entire Somavrac group and will retain its Quebec-based operations and workforce.

“Groupe Somavrac is a high-quality company with a strong culture and an essential role in the Quebec and Canadian economy,” said Daniel Perruzza, partner at Instar. “We’re focused on supporting the team to build on the Company’s strengths, pursue new growth opportunities, and extend our shared values of respect for people, operational excellence, environmental responsibility and long-term thinking.”

The transaction is supported by the Government of Quebec through the Fonds de développement économique du Québec.

“Now more than ever, Quebec must build on the strengths of its regions to bolster its economy,” said Christine Fréchette, Quebec’s minister of economy, innovation and energy, adding that the partnership will help preserve strategic jobs and decision-making in the province.”

Financial terms of the transaction were not disclosed by Instar and Groupe Somavrac. But Fréchette’s governing party, Coalition Avenir Québec, is providing $113 million.

Investissement Québec is a provincial investmenet agency, Fonds FTQ is a coalition of pension funds backed by labour groups.

Based in Toronto, Instar is a private-equity firm that invests in scalable businesses in communities across North America’s middle market. The company has approximately $3 billion of equity under management, with the assets based primarily in the transportation and logistics, energy-transition, and environmental sectors.

Pictured: Facility owned by Groupe Somavrac.

Photo: Groupe Somavrac