Novacap Acquires Interest in Globe Electric Company
May 12, 2021
MONTREAL, May 12, 2021 - Novacap, one of Canada's leading private equity firms, in partnership with Fonds de solidarité FTQ and Fondaction, today announced that it has acquired a majority interest in Globe Electric Company ("Globe Electric"), a Montreal-based company specializing in the design, development, manufacturing, and marketing of innovative consumer lighting and electrical products.
MONTREAL, May 12, 2021 /CNW Telbec/ - Novacap, one of Canada's leading private equity firms, in partnership with Fonds de solidarité FTQ and Fondaction, today announced that it has acquired a majority interest in Globe Electric Company ("Globe Electric"), a Montreal-based company specializing in the design, development, manufacturing, and marketing of innovative consumer lighting and electrical products.
Founded in 1932, Globe Electric's unique approach to product development has made it a leader in bringing to market products that meet the growing demand for function and design for the home. From trend-forward light fixtures, design-centric power and charging solutions, to patented technologies and a robust connected home portfolio, Globe Electric products are available in over 40,000 retail locations across North America and online across more than 20 e-commerce channels.
Edward Weinstein, the third-generation CEO of Globe Electric, along with the senior management team, will retain substantial ownership in the company and remain in their current roles.
"We are grateful for the enthusiastic support of Novacap and its partners in this transformative transaction for our company," said Weinstein. "Their passion for what they do matches our own. This investment is truly growth capital, allowing us to continue what we have done best for 90 years: perpetually innovating; remaining customer-obsessed; taking care of our employees and suppliers; while expanding into new distribution channels and geographies. We will now be able to do so at greater scale."
"The Novacap team understands well how we have balanced our local heritage and cultural identity with our global ambitions," continued Weinstein. "They are well positioned to support us in the next phase of our development."
"Globe Electric is a great Canadian success story, and we are thrilled to be a part of its next chapter," said Michel Côté, Senior Partner, Novacap. "Novacap has always been a champion of ambitious owner-entrepreneurs in Quebec, and Globe Electric has embodied that spirit for almost a century."
"Our partnership not only provides capital, but also our extensive experience in building world-class companies, helping entrepreneurs like Eddie achieve their expansion goals," said Jamie Cartwright, Principal at Novacap, Toronto. "We are very excited to lead this investment alongside Fonds de solidarité FTQ and Fondaction."
"We are proud to join forces with Globe Electric, Novacap and Fondaction with a significant investment to ensure that the company remains in Québec hands." added Janie C. Béïque, President and CEO of Fonds de solidarité FTQ. "Investing in a better society means supporting the growth of local companies and good quality jobs for Québec workers. Thanks to a culture of innovation, Globe Electric is well positioned to maintain its market leadership."
"Fondaction believes in the importance of supporting an innovative business at a key moment in its expansion, and as such, is investing in Globe Electric alongside Novocap and the Fonds de solidarité FTQ." stated Dominique Chaussé, Deputy Chief Investment Officer, Large Accounts, at Fondaction.
Fasken Martineau Dumoulin LLP and Ernst & Young LLP acted as advisors to Novacap.
Houlihan Lokey, Richter LLP, Spiegel Sohmer Inc. and Stikeman Elliot LLP acted as advisors to Globe Electric.
Founded in 1981, Novacap is a leading Canadian private equity firm with more than C$8B of AUM that has invested in more than 90 platform companies and completed more than 140 add-on acquisitions. Applying its sector-focused approach since 2007 in TMT, Industries and now Financial Services, Novacap's deep domain expertise can accelerate company growth and create long-term value. With experienced, dedicated investment and operations teams as well as substantial funding, Novacap has the resources and knowledge to build world-class businesses. Novacap has offices in Brossard, Quebec and Toronto, Ontario. For more information, please visit www.novacap.ca.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is investing in a better society thanks to its over 700,000 shareholder-savers. Through its private equity and venture capital investments, the Fonds seeks to have a positive impact on society, namely in the health, environmental and innovation sectors. With net assets of $15.6 billion as at November 30, 2020, the Fonds supported over 3,300 partner companies and more than 220,000 jobs.
A pioneer for 25 years, Fondaction is the investment fund for those who mobilize for the positive transformation of the Quebec economy. To make our economy more efficient, fairer, more inclusive and greener. As a labor-sponsored fund, Fondaction represents tens of thousands of savers and hundreds of companies committed to advancing Quebec. He manages net assets that total more than $2.6 billion invested in hundreds of companies and in the financial markets, favoring investments that generate positive economic, social and environmental impacts in addition to financial returns. Fondaction helps maintain and create jobs, reduce inequalities and fight climate change. For more information, see fondaction.com or our LinkedIn page.
About Globe Electric
Globe Electric is a North American leader and innovator in lighting solutions, electrical products, and smart home systems. Coined the Creative Energy Company, Globe Electric is committed to continuous R&D, delivering the best quality products, and leaving a positive impact on the lives of consumers. Each product is Made with Respect™; our commitment extends to every person involved in the making of our products, from design to production to delivery, and to our shared natural environment. Globe Electric products can be found at retailers across North America and online. Founded in 1932, Globe Electric is headquartered in Montreal, Quebec. For more information visit globe-electric.com or contact [email protected]
SOURCE Novacap Management Inc.