TORONTO, June 16, 2004 - VenGrowth Private Equity Partners Inc. ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a $4.3 million investment in custom plastic bottle manufacturer MPI Packaging Inc. ("MPI").
The VenGrowth Traditional Industries Fund Inc., The VenGrowth III Investment Fund Inc. and VG Mezzanine I Limited Partnership provided a subordinated loan to the Mississauga, Ontario-based company and also acquired a minority equity position. The financing will be used to purchase additional blow moulding machinery that MPI needs to support its customers' growing orders.
"MPI is an established company with an experienced management team, proven track record and a unique value proposition - qualities that VenGrowth's Mezzanine Finance Team targets on behalf of shareholders," said Graham McBride, Managing General Partner, VenGrowth. "We are delighted to partner with MPI in order to help the firm meet the increased demand for its customized packaging services."
MPI specializes in customizing Polyethylene Terephthalate ("PET") plastic bottles for a variety of uses such as liquor, cosmetics, beauty and personal care, milk and food products, motor oil & oil additives and carbonated beverages. PET is the most flexible and most recycled plastic. MPI customizes the shape of bottles or adds unique features that allow customers to differentiate their products. The company focuses on providing superior service and support to lower volume customers that are not typically prioritized by larger bottle manufacturers.
"MPI has developed a strategic competitive advantage over larger suppliers by providing custom packaging solutions to customers with low-to-medium volume requirements," said Ron O'Brien, President, MPI Packaging Inc. "Our success in this growing market niche has led to an increased demand from customers. VenGrowth's involvement will help us meet our new customer demand."
"We are excited to work with VenGrowth to continue to expand and realize the potential of this business," added Paul Morton, majority owner of MPI.
About VenGrowth's Mezzanine Finance Team
VenGrowth's Mezzanine Finance Team specializes in financing solutions for mid-market Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. Investments are made on behalf of shareholders in participating VenGrowth Funds. The Team primarily invests using debt instruments with the objective of generating interest and dividend income to the Funds. In addition, the Funds will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. This group of VenGrowth professionals is led by Graham McBride, a highly regarded mezzanine financing expert with over 19 years of experience.
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.
About MPI Packaging Inc.
MPI delivers customized packaging solutions for low to medium bottle volume requirements, from prototype to 20 million units per sku annually. MPI's bottles sizes range from 100ml to 8 ltr and neck finishes currently range between 22mm-75mm, with a range of 22mm-135mm under development. Some of MPI's specific neck finishes are 24-400/410/415, ROPP, Kerr, 38-400, 33-400 and the company will develop to meet customers' needs. MPI also supplies in-house pressure sensitive and heat transfer labeling. With facilities in both Toronto and Los Angeles, MPI is able to transport cost effectively anywhere in North America. For more information, please visit www.mpi-pet.com
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
