TORONTO, October 19, 2005 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1.1 billion in assets under management, today announced a $10.5 million investment in Numatech Industries Inc. ("Numatech").
VenGrowth Funds, including The VenGrowth Traditional Industries Fund Inc., The VenGrowth III Investment Fund Inc. and VG Mezzanine I Limited Partnership, provided a subordinated loan to Numatech, and also acquired a significant equity position. The financing enabled an experienced Numatech management team, led by founder Brent Vickery, to buy-out additional shareholders. It will also allow the company to pursue further acquisition opportunities.
"The VenGrowth Mezzanine Finance Team seeks to partner with proven management in established businesses and that is exactly the case with this investment in Numatech," said Graham McBride, Managing General Partner, VenGrowth. "The Numatech management team has decades of experience in the corrugated plastic industry and is well placed to continue to grow this industry-leading business."
Numatech designs and custom manufactures packaging products made from corrugated plastic - a strong, moisture resistant, lightweight and durable alternative to corrugated cardboard, moulded plastic or metal packaging products. With five corrugated plastic conversion facilities located in Canada and the US, Numatech produces a variety of boxes, totes, bins, pallets, signs and protective dunnage (interior packaging inserted into containers) for customers in a wide range of industries, including the automotive and agricultural sectors. Many of Numatech's products are returnable and reusable, a feature that can significantly reduce costs for customers over the long-term.
"Packaging is a major component of production costs for many manufacturers as they use several types of containers and packaging materials to protect, preserve and facilitate the delivery of products," said Brent Vickery, President and CEO of Numatech. "Our customized, reusable packaging is increasingly used by customers for multiple trip applications in a well-managed supply chain. Since 1992 Numatech has expanded to become the North American leader in the corrugated plastic packaging field and we look forward to continuing to grow with the help of this partnership with VenGrowth."
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 $1.1 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 over 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 Numatech
Numatech is North America's number one supplier of converted corrugated plastic products and a leading supplier of returnable and reusable packaging systems. Numatech is the only company of its kind to have complete coverage of the North American marketplace through its strategically located facilities. For more information, please visit www.numatechindustries.com.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
