Groupe Somavrac Inc., a Québec-based infrastructure and logistics company, has been acquired by a consortium led by Instar Asset Management Inc., with Investissement Québec and the Fonds de solidarité FTQ as co-investors, in a deal aimed at supporting the firm’s next phase of growth and succession planning.
Under the transaction, Instar is acquiring the entirety of Groupe Somavrac, including all 12 subsidiaries. The company’s head office will remain in Trois-Rivières, and approximately 500 jobs in Québec and Ontario are expected to be maintained. Financial terms were not disclosed.
Founded by the Paquin family, Somavrac operates 17 specialized sites along the St. Lawrence Seaway and plays a significant role in the supply chains of various sectors, including mining, agriculture, pulp and paper, aluminum, cement, chemicals, and water treatment.
Somavrac president and CEO Marc Paquin will remain in his role for a transition period as he works with Instar to identify his successor.
“Groupe Somavrac was built with a deep sense of responsibility toward our employees, our partners, and the communities we serve,” Marc Paquin said in a press release. “After careful consideration of the company’s future, we selected Instar as the right partner to build on our legacy, preserve our culture, and support our people. With the support of Instar and its Québec-based co-investors, we will safeguard more than 500 jobs, maintain our 12 divisions, and strengthen our presence in Québec as we take the next step in our growth and continue playing a strategic role in the Québec economy.”
Instar framed the acquisition as a long-term investment in a core piece of industrial infrastructure.
“Groupe Somavrac is a high-quality company with a strong culture and an essential role in the Québec and Canadian economy,” said Daniel Perruzza, partner at Instar. “We’re focused on supporting the team to build on the Company’s strengths, pursue new growth opportunities, and extend our shared values of respect for people, operational excellence, environmental responsibility and long-term thinking.”
For Investissement Québec, the deal is also about keeping control and decision-making in the province.
“Groupe Somavrac is a highly strategic player in the logistics of essential materials for the mining, aluminum, and agricultural sectors,” said Investissement Québec president and CEO Bicha Ngo. “By acquiring an ownership interest at this pivotal moment in the company’s history, Investissement Québec is helping to maintain the head office in Québec, preserve numerous jobs across eight regions of the province, and support the company’s growth.”
The Fonds de solidarité FTQ highlighted the transaction’s alignment with its mandate to back Québec enterprises with broad economic impact.
“This partnership is aligned with the Fonds’ mission to support Québec businesses that contribute to sustained economic and social value,” said Gilles Poulin, vice-president, private equity and impact investing in aerospace, infrastructure and transportation, at the Fonds de solidarité FTQ. “At a time of major structural change, maintaining strong supply chains in Canada is critical, and Groupe Somavrac is a key player in this important sector. By supporting this partnership, the Fonds is contributing to the continued development of a business that creates quality jobs and supports economic vitality across multiple regions of Québec.”
The partnership also has explicit backing from the Government of Québec through the Fonds de développement économique du Québec and is being positioned as consistent with the province’s economic priorities, particularly around regional development and control over strategic infrastructure.
“Now more than ever, Québec must build on the strengths of its regions to bolster its economy,” said Christine Fréchette, minister of economy, innovation and energy, and minister responsible for the Montérégie region. “By supporting Groupe Somavrac, our government is reinforcing its decision to maintain the head office of a leading Québec company in the province, preserve well-paid, essential jobs in multiple regions, and retain control over the use of Québec’s waterways. This is critical to ensuring that our economy is self-reliant and that strategic decisions continue to be made right here in Québec.”
“Groupe Somavrac has been driving significant economic spinoffs in Québec for over 60 years,” added Jean Boulet, MNA for Trois-Rivières, minister of labour and minister responsible for the Mauricie region. “Our government is proud to support Groupe Somavrac, a key partner to several Québec industries, while helping to maintain and create hundreds of jobs across the province.”
On the advisory side, TD Securities Inc. acted as exclusive financial advisor to the consortium formed by Instar, Investissement Québec and the Fonds de solidarité FTQ, with McCarthy Tétrault LLP serving as legal advisor. PwC Corporate Finance Inc. advised Somavrac on the transaction, and Miller Thomson LLP acted as the company’s legal counsel.
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