Canada’s La Coop fédérée secures $228m investment

Canadian agricultural cooperative La Coop fédérée has secured an investment of C$300m ($228m) from four investors to pursue its growth strategy.

Investors include Caisse de dépôt et placement du Québec (CDPQ), the Fonds de solidarité FTQ, Fondaction, and Desjardins Capital.

The company intends to use the money to fund the capital acquisitions and investment projects, which are part of its 2019-2022 strategic goals.

La Coop fédérée CEO Gaétan Desroches said: “La Coop fédérée has experienced unprecedented growth in recent years, consolidating its leading position in the agri-food and retail sectors in Quebec and Canada.

“This investment by these reputable financial institutions that are being announced today is not only a great sign of confidence in our organisation but also in the cooperative business model.”

Established in 1922, La Coop fédérée is the largest agri-food enterprise in Quebec, which represents more than 120,000 members, agricultural producers and consumers across various Canadian provinces.

The company’s activities are divided into three units, Olymel SEC, Sollio Agriculture and Groupe BMR. It has sales of C$6.5bn and employs over 14,000 people.

Fondaction chief investment officer Stephan Morency said: “The sustainable agri-food industry is essential to Québec, its population and the development of its regions, and Fondaction has made it one of the major themes of its investment strategy.

“Our renewed support for La Coop fédérée is in line with this objective. By supporting one of the largest Québec cooperatives, we are also contributing to the social economy, as it is well equipped to respond to the sustainable development issues across Québec.”