Capital used to partner with former general manager in the acquisition of
established business
TORONTO, July 21 /CNW/ - VenGrowth Private Equity Partners Inc.
("VenGrowth"), a leading private equity firm with over $1 billion in assets
under management, today announced a $3.4 million investment in Samplex
Marketing Solutions Corporation ("Samplex").
The VenGrowth Traditional Industries Fund Inc., The VenGrowth III
Investment Fund Inc. and VG Mezzanine I Limited Partnership provided a
subordinated loan to the Toronto-based company, and also acquired a minority
equity position. The financing enabled Todd Blair, former general manager of
Samplex, to lead the purchase of the company from previous owner Advantex
Marketing International Inc. (TSX:ADX).
"Founded in 1983, Samplex pioneered selective sampling programs for
packaged good manufacturers in Canada and is the dominant player in that
market," said Graham McBride, Managing General Partner, VenGrowth. "Todd has
continued to build on that success since taking the reins in 2004, and we are
excited to partner with Samplex to help realize the full potential of this
business."
Samplex creates and distributes demographically themed product sample
packs for large, brand name packaged goods manufacturers. Samplex groups
product samples and coupons together in themed packs for sale to consumers
through grocery stores, drug stores and mass merchandisers. An example is a
pack comprised of health and beauty products targeted to teenagers and sold
through National Grocers and Shoppers Drug Mart.
"Packaged goods manufacturers are increasingly using product sample packs
to target specific demographic groups and generate business by encouraging
consumers to trial their products," said Todd Blair, President, Samplex
Marketing Solutions Corporation. "We plan to build on the many long-term
relationships that we have in place with retail and packaged goods partners.
I'm delighted to partner with VenGrowth, a private equity leader, and utilize
its support in executing on our growth strategy."
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 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 Samplex
Samplex is a leading consumer marketing company with a long history of
connecting consumers to the products they need and want at key times of their
lives. Samplex's product sampling packs give consumers the opportunity to try
out a variety of national brand products at a significantly discounted price.
Samplex takes care to bundle together an appealing assortment of full and
trial-sized product samples, reflecting a particular life event, theme or
interest.
