CDPQ investment and major acquisition | Pomerleau at full speed towards Western Canada

Pomerleau’s pan-Canadian expansion reached a pivotal moment in September with the closing of the purchase of ITC Construction Group – the largest acquisition in its history. To help it take this bite, the Quebec construction giant receives another investment from the Caisse de depot et placement du Quebec (CDPQ), which this time amounts to 150 million.

This support from Quebecers, which will be announced this Wednesday, is three times higher than the 50 million invested in 2018.

Made official last September, the purchase of ITC allows Pomerleau to kill two birds with one stone: increase its presence in Western Canada and “break into” the niche of residential construction in this market, explains its chief financial director, Philippe Adam.

“We were present in British Columbia and Alberta with our subsidiary Borea in renewable energy projects [solaire et éolien], but we were not in the residential sector, ”he said during a videoconference with Kim Thomassin, first vice-president and chief investment officer in Quebec for the CDPQ. “It’s a double diversification. »

Pomerleau has nine offices in Canada, allowing it to be present in all the country’s major markets (Quebec, Ontario, Maritimes and Western Canada).

The amount of the transaction was not specified. Vancouver-based ITC, which specializes in projects costing between $1 million and $600 million, generates just over half a billion dollars in revenue, according to Adam. This company says it has completed more than 200 residential, institutional and commercial projects, including residential complexes in cities such as Vancouver, Calgary and Edmonton.

A balance achieved

When welcoming the CDPQ as a shareholder in 2018, Pomerleau, whose name is associated with major infrastructure projects in Quebec (Réseau express métropolitain, repair of the Louis-Hippolyte-La Fontaine tunnel and the new Molson brewery in Longueuil ), generated two-thirds of its sales in the province.

Thanks to its new take, the company founded six decades ago will generate as much revenue outside Quebec as it does in the Quebec market. Its revenues reach 4 billion.

“For us, this investment [les 150 millions] is in keeping with our strategy of supporting acquisitions of Québec companies that make acquisitions outside Québec. This strengthens Pomerleau’s pan-Canadian presence in addition to being part of our strategy to support local champions. »

This announcement from the manager of public and parapublic pension plans comes two days after the exit of his big boss Charles Emond, who sets a target of 100 billion in Quebec assets for 2026. This would represent an increase of more than a quarter compared to today. today.

A long relationship

The first discussions between ITC and the Quebec company took place about seven years ago, reveals its chief financial officer. They accelerated in the past year following the death of one of the two shareholders of the Vancouver company, who was over 80 years old. This has “accelerated sales and succession issues,” says Adam.

If the company continues to keep an eye out for acquisitions, its number two concedes there might be a pause to digest the latest bite.

“It’s a big acquisition,” says Mr. Adam. We also have strong internal growth. Pomerleau is not the kind of company that will make eight to ten acquisitions a year. For the moment, we will take the time to integrate it well [ITC]. »

The collaboration between the CDPQ and Pomerleau is not limited to the shareholding of the company. Last February, the company announced a new investment fund dedicated to infrastructure and renewable energy. The Fund had undertaken to contribute up to 40 million.