VenGrowth Funds Invest $4 Million In Established Printing Company Central Ontario Web
Press release from the issuing company
TORONTO, Nov. 23 - VenGrowth Capital Partners, a leading private equity firm with over $1 billion in assets under management, today announced a $4 million investment in printing firm Central Ontario Web Ltd.
The VenGrowth Traditional Industries Fund Inc. and the VenGrowth II Investment Fund Inc. participated in the acquisition of Barrie-based Central Ontario Web from its founders. VenGrowth's mezzanine finance team led the buy-out transaction, which included senior bank financing and a co-investment from George Grigaitis - an experienced investor with a successful track record of building and running successful printing companies.
"I'm excited to be involved with this established printing company with a strong reputation for on-time delivery and a healthy customer base in the Southern Ontario market," said Mr. Grigaitis, Chief Executive Officer of Central Ontario Web.
The deal was structured so that the VenGrowth Funds receive regular interest income on a subordinated loan and also other debt that is convertible into an equity stake in the private company. The deal represents the fourth investment completed by the VenGrowth Traditional Industries Fund - VenGrowth's most conservative labour sponsored investment fund ("LSIF") offering to date.
Established in 1990, Central Ontario Web provides "web offset printing" - one of the most cost-efficient and commonly used commercial printing processes. The company services local, regional, national and international clients - specializing in printing community newspapers and commercial business. Andrew Scannapiego, an experienced manager of printing operations and long-time colleague of Mr. Grigaitis, will head up the day-to-day operations of Central Ontario Web going forward.
"Central Ontario Web has established itself as a successful business in a fragmented market that presents significant growth prospects," said Gavin Muranaka, Investment Director of VenGrowth. "The company exhibits the key qualities that the VenGrowth's mezzanine finance team targets on behalf of investors - an experienced management team, cash flows and a strong value proposition."
"The financing from the VenGrowth Funds will enable us to further expand our sales presence and focus on growth opportunities in the newspaper and commercial printing market," said Mr. Scannapiego, President of Central Ontario Web.
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