Market improvements expected
ate a company with global sales of $180,000,000.
What is known is that the new company will be headquartered in Quebec City, where Polycor was founded in 1987. One of the partners in the financing of the deal is PNC Mezzanine Capital, who has financed Polycor for a couple of years. The main player is what can be best described as a venture fund. TorQuest, at the heart of the deal, presents itself as a private equity fund. It manages more than 2 billion in investment and its latest offering was over capitalized, raising $925,000,000 rather than the predicted $750,000,000. Locally the company is known for its investment in Granby Steel tank that they bought in 2002, finally to resell it two years later. On the darker side, it was involved with the now bankrupt Herbal Magic franchises. Most companies would bury that information deep in unreadable legal statement, but TorQuest put it front and centre on their website.
So what is to be expected is that after the usual round of ‘rationalization’, Polycor will be resold at a profit either publicly or privately. As in all venture capital investments, they are in for the best profit in the minimal amount of time. A fact confirmed by Polycor president Patrice Pérus in an interview with the Stanstead Journal yesterday. “Private equity funds have an exit strategy of between 5 to 7 years, but we are in for a longer run.” He, along with management is holding an unspecified number of shares of the company. Mr. Pérus, a Frenchman who moved to Georgia to run a quarry later sold to Polycor and who has lived in Quebec since the mid-nineties, told this newspaper that there will not be any jobs lost in Stanstead, either in the plant or in the administrative side of the operation.
When asked on the state of the industry, he admitted that the monument side is in decline but that a pickup is expected as some of the work done in India and China is coming back home. There are very good opportunities in the commercial side for all of the stone industry and, after the setback of the recession, people are reinvesting in their homes and stone is a feature in almost all kitchen renovations.
Where he was most enthusiastic was in the infrastructure segments. Towns all over North-America are redoing their downtown areas to induce high spenders there and that includes granite paving and curbing.
The quarry with its quaint old crane.