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Fredac Acquires Laurin Containers With Financing From BDC Capital

Jul 8, 2019

BDC Capital's Growth & Transition Capital division has provided $1 million in financing to Fredac, the investment firm of entrepreneurs Frederic Albert and Frederic Chabanne, to acquire Laurin Containers, a manufacturer of steel refuse containers. This is the first acquisition in the steel industry for Fredac, which has the objective of becoming a leader in the steel product manufacturing sector.

A second-generation family business founded in 1965, Laurin Containers has been entrusted by the new management team with a forward-looking business model that focuses on the production of its high-quality environmental containers.

BDC Capital's non-dilutive financing, which was completed within extremely tight deadlines, takes the form of a mezzanine loan whose amounts and repayment dates may vary according to the company's cash flows. It complements the financing provided by the senior lender in this transaction, to which it is subordinated.

Frédéric Albert and Frédéric Chabanne also own, through Fredac, the company Fibrobec, a manufacturer of fibreglass truck covers, which they acquired in 2010 when it was facing financial difficulties. The two entrepreneurs quickly implemented new management practices, while respecting the organization's history.

"Thanks to the help of BDC Capital, we were able to acquire a company with strong growth potential that represents a promising stepping stone for further acquisitions in the steel sector," said Frédéric Albert, President of Fredac. One of the first things Frédéric Chabanne and I did at Laurin's included reducing the number of products in order to concentrate the company's production on what constitutes its strength, namely environmental containers." 

This transaction was led by Jean-Philippe Poissant, Director, Growth & Transition Capital, at BDC Capital's Laval office. "We were very impressed by the new life that Frédéric Albert and Frédéric Chabanne breathed into their previous acquisition and have no doubt that they will demonstrate the same know-how at Laurin," said Jean-Philippe Poissant. We are prepared to support these two dynamic entrepreneurs once again in any future acquisition project." 

About Laurin Containers
Founded by Denis Laurin in 1965, the company has forged a reputation over the years for expertise and quality in steel products. In 2019, Frédéric Albert and Frédéric Chabanne acquired Laurin and are taking steps to breathe new life into the company, in particular, by concentrating production on the key products for which Laurin is renowned, namely its high-quality environmental containers.

About BDC Capital
BDC Capital is the investment arm of BDC—Canada's only bank devoted exclusively to entrepreneurs. With more than $3 billion under management, BDC Capital serves as a strategic partner to Canada's most innovative firms. It offers a full range of equity and financing solutions, for both start-ups and transitioning companies alike. BDC Capital helps Canadian entrepreneurs who want to scale their businesses into global champions. Visit bdc.ca/capital.

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