TORONTO, February 16, 2006 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a $4.5 million investment in McCowan Manufacturing Ltd. ("McCowan"). The financing was led by VenGrowth's Mezzanine Finance Team.
VenGrowth Funds, including The VenGrowth Traditional Industries Fund Inc. and The VenGrowth III Investment Fund Inc., provided a subordinated loan and also acquired a significant equity position in the company. VenGrowth's financing, along with funding from Global Capital Partners, enabled entrepreneur Paul Nicholson to acquire the company from its previous owners.
McCowan has been in operation for over 40 years and employs 55 people at its Toronto facilities. The company designs and manufactures customized point-of-sale display and merchandising systems primarily for the Canadian petroleum service station convenience store market. McCowan is a "one-stop shop" for store fixtures - its variety of display and shelving solutions are used inside gas stations and outside on the forecourt where pumps are located. Examples of specific products include paypoint counters, food and beverage service counters, signage and cigarette display cabinets.
McCowan counts major oil and gas companies and leading clothing retailers as longstanding clients. The company has carved a significant niche in a service station market that has increasingly focused its efforts on non-gas retail offerings to increase customer traffic, revenue and profitability.
"McCowan has an experienced management team in place and has built an outstanding reputation over the years with a strong commitment to customer service," said Michael Wolfe, General Partner, VenGrowth. "There is an opportunity for McCowan to take its flexible product offerings to new markets and we are delighted to partner with Paul Nicholson to help realize the full potential of this business."
"McCowan's well-engineered products are designed for quick installation without tools and provide the option of metal, wood and plastic combinations. This has established McCowan as the leading supplier to the Canadian service station market," said Paul Nicholson, President, McCowan. "In our markets, the McCowan name is synonymous with excellent products and service; enabling our customers to add significant merchandising value in their stores and forecourt. We have a tremendous ability to provide solutions to our customers' problems. This new partnership with VenGrowth will enable McCowan to build on the many long-term relationships that it has developed."
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 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 McCowan
McCowan Manufacturing Ltd. has built on its half century of history to become one of North America's foremost producers of point-of-sale display and merchandising systems. McCowan manufactures customized solutions primarily for the petroleum service station convenience store market. McCowan's products include: paypoint counters, service counters for food and beverage, shelving solutions, forecourt signs and fixtures, security displays and custom fixtures. For more information, please visit www.mccowan.ca.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
