Private equity firm Desjardins Group is buying the thermoplastic division of Canada's Camoplast Solideal. The division's management team also will have a stake in the business.
The new firm will oversee all of Camoplast's operations related to developing, manufacturing and the sale of injection molded and blow molded products. It will operate under the name Exo-s once the deal is completed.
“By becoming a stand-alone business, the team we have will be able to focus on accelerating our growth perspectives,” said Emmanuel Duchesne, new CEO of Exo-s, in a news release.
Terms of the deal were not released.
The new company will be based in Sherbrooke, Quebec, and have 500 employees with additional operations in the Michigan towns of Three Rivers, Coldwater and Centerville, as well as a sales office in Troy, Mich.
The business makes engine covers, thermal systems, coolant reservoirs washer reservoirs and air-induction systems for the auto industry and agriculture and all-terrain utility vehicle parts.
Montreal-based Desjardins Venture Capital said the investment will help ensure growth for the business, while allowing it to retain a local base.
Camoplast, meanwhile, will be able to continue its focus on designing, manufacturing and distributing off-road tires, tracks, undercarriage systems and other components for the agriculture, material-handling and off-road sports equipment industries.