Congebec: environmental protection at the service of profitability (French)
Managing the energy in a freezer is not just a question of saying that I’m going to turn down the temperature. – Nicholas-P. Pedneault, CEO
MISSISSAUGA, ON, May 3, 2021 /CNW/ – In order to build its presence in Toronto and increase its pan-Canadian development in temperature-controlled food storage and distribution, Congebec Inc. is proud to announce the construction of a large expansion of its Mississauga facility. This expansion will allow the existing facility’s storage space to grow from 170,000 sq ft to 232,600 sq ft, increasing its storage capacity by 12,000 pallets. Congebec Inc.’s network will reaffirm its 9th position as the largest temperature-controlled storage company in North America, and 13th worldwide.
Launching construction: 2nd phase
for Congebec’s cold storage facility
In early 2018, Congebec became North America’s very first company with the latest generation of central refrigeration systems from Frick, a leading manufacturer for which CIMCO is the exclusive distributor in Canada and the United States. In an industry where the issue of ammonia concentration is crucial to employee safety and a smaller environment footprint, this low charge central system (LCCS), has made it possible to reduce ammonia concentrations by 90% compared with conventional systems. Having worked with the LCCS for 3 years now, Congebec’s team has mastered this new technology, and become experts in this unique refrigeration system that will also be used in the new construction.
To further assist in saving energy and reducing power usage, this facility will be equipped with power conditioning; an electric energy saving system to filter and optimize power quality and maximize energy savings. This will allow the Mississauga facility to avoid blackouts and will provide Congebec with a more reliable operation. This world-class freezer/cooler design will feature market leading physical attributes starting with its efficient building envelop that reduces heat islands with its unique white roof.
To protect new equipment and increase power quality, capacity banks will be installed on our transformer. Additionally, a dehumidification system will be installed for the office space, therefore increasing employee well-being. By creating a green space following the construction of the expansion, Congebec will have achieved numerous environmentally friendly initiatives to balance out its carbon footprint and reverse construction emissions.
“We aim to continue our mission to connect food to the world by working to feature innovative and energy efficient operations in our facilities, therefore aligning with our values and our sustainable development initiatives. Our modern construction in Toronto will ensure high-quality and safe food products to our customers and to consumers,” said Nicholas Pedneault, President & CEO of Congebec.
The LCC system
Frick’s central refrigeration system offers a complete low-charge solution with compressors, evaporators, condensers, and controls. It allows greater performance in addition to remote distributed condensing. The system significantly reduces ammonia charge (1.5-3 lb/TR) and posts strong investment returns. Its water supply via open circuit reduces bacterial growth. It also provides multiple heat recovery possibilities.
The system designed by Frick is be the biggest built on an industrial scale to date. “Congebec is the only Canadian company that has one,” said Peter Reeve, Contract Sales, CIMCO Refrigeration. “Because of this, Congebec is a valuable technology showcase that enables us to develop the North American market efficiently.”
About Congebec Inc.
Congebec is a Canadian based supplier of multi-temperature storage, value added & distribution services supporting the food, retail and CPG industry. Committed to food safety, Congebec is a leader in the Canadian marketplace and is ranked 9th in North America. With more than 500 employees and over 45 years of experience, the company operates 12 modern facilities totaling more than 60 Million cubic feet. These facilities are strategically located in Quebec, Ontario, Manitoba, Saskatchewan & Alberta.
————————————-
SOURCE Congebec Inc.
Markets Insider and Business Insider Editorial Teams were not involved in the creation of this post.
Managing the energy in a freezer is not just a question of saying that I’m going to turn down the temperature. – Nicholas-P. Pedneault, CEO
At a time when the demand for food aid is higher than ever, this innovative initiative enables food to be recovered and redistributed, in line with Bel Canada and Congebec’s shared objective of reducing food waste.
“More than 46 per cent of food is wasted every year in Canada. This program, in collaboration with Congebec and Food Banks of Quebec, will play a key role in the fight against food waste and insecurity while optimizing the performance of our supply chain. As a sector leader, we hope our commitment will encourage other companies to join this great collaboration.” – Bel
On November 1, 2024, Congebec, the largest provider of refrigeration services in Quebec and one of the largest in Canada, celebrates its 50th year in business. Under the leadership of CEO Nicholas-P. Pedneault, Congebec has expanded significantly over the past decades, driven by the same dedication to supporting Canadian businesses and food security it has always had. Photo : Archimed Studio.
Quebec City, Canada – Nicholas P. Pedneault, President and CEO of Congebec, is proud to announce that he has become the majority shareholder of the company he’s been managing since 2015. Three members of his management team will join him as co-shareholders: Guy Clairmont, Vice-President of Finance; Richard Patenaude, Vice-President of Sales and Operations; France Pomerleau, Vice-President of Human Capital, Regulatory Compliance and Communications. All three are key partners in Congebec’s growth and future success.
To complete the transaction, Congebec turned to Desjardins Business, which partnered with Desjardins Capital, Investissement Québec and Fondaction to act as the company’s lenders.
Close to $2 billion of food handled each year
“I want to thank Desjardins Capital, Investissement Québec and Fondaction for their support in 2015, which made it possible for Congebec to be transferred to the next generation,” said Nicholas P. Pedneault. “Each year, close to $2 billion of food passes through our facilities. In an industry that’s seeing more and more international consolidation, it’s important to offer the food industry an independent Canadian supply chain with logistics expertise and nation-wide service. Our company has grown significantly in the last 5 years. The success we’ve seen is thanks in large part to our 500 employees who embody our mission: to provide innovative multi-temperature fully integrated logistics solutions that ensure food safety and quality for consumers.”
“Desjardins Capital has stood by Congebec since 2004,” said Luc Ménard, Chief Operating Officer of Desjardins Capital. “We’re a patient investor. And we’ve been proud to support the growth of this SME, which has become a Canadian benchmark, doubling its sales over 5 years and propelled by its outside-Quebec operations. The buying back of share capital by the company’s very own senior management is very much in line with our business model, which strives to support homegrown businesses and keep them in Quebec. We’re also very pleased that the board of directors we set up within Congebec in 2015 is still in effect today. To us, ensuring quality governance is just as important as providing financial backing.”
“In keeping with the expanded mandate received from the Québec government, Investissement Québec aims to facilitate successful business transfers by offering buyers and sellers the support and assistance they need. This transaction is a prime example of how we strive to do that,” said Guy LeBlanc, President and CEO of Investissement Québec. “As a long-standing partner of Congebec, Investissement Québec is proud to enable this Québec jewel to pursue its growth, here and across Canada, while backing a business transfer that can inspire an entire generation of entrepreneurs. We wish Congebec’s managers and employees the best of luck with their growth initiatives.”
“The food industry depends on high-functioning supply chains. A company like Congebec is an essential player in this field, which is why it made sense for Fondaction to help it grow and take part in its transfer to a new generation of management. We’ve been supporting agri-food entrepreneurs for a long time, so we were honoured to contribute to the success of this Quebec flagship,” said Claire Bisson, Deputy Chief Investment Officer at Fondaction.
Congebec and COVID-19
When help was needed during the COVID-19 crisis, there was an overwhelming response from Congebec teams, who volunteered with food banks across Canada to support communities in need. “Congebec really stood out as a key partner in preventing food waste during the pandemic and providing assistance to those in need,” said Jean-François Archambault, General Director and founder of La Tablée des Chefs. “Thanks to food donations and support from Quebec’s chefs, we prepared over 400,000 meals. This food is stored and refrigerated at Congebec facilities. From there it’s distributed to partnering food banks in the Quebec City and Montreal areas. Without Congebec’s support, this initiative wouldn’t have been possible.”
—————————-
About Congebec
Established in Quebec City in 1974, Congebec is a Canadian supplier of multi-temperature food storage and value-added distribution services supporting the food, retail, and consumer packaged goods industries. Committed to food safety, Congebec is a leader in the Canadian marketplace and is ranked 9th in North America. With more than 500 employees and 45 years of experience, the company operates 13 modern facilities, totalling more than 57 million cubic feet. These facilities are strategically located in Quebec, Ontario, Manitoba, Saskatchewan and Alberta.
—————————————
About Desjardins Capital
For nearly 45 years, Desjardins Capital has fulfilled its mission to promote, support and nurture Quebec entrepreneurs. With assets of $2.6 billion, Desjardins Capital helps contribute to the longevity of approximately 530 companies, cooperatives and funds in various sectors across Quebec. In addition to helping create and maintain more than 80,000 jobs, this subsidiary of Desjardins Group offers entrepreneurs access to a large business network that supports business growth. For more information, visit the Desjardins Capital website or LinkedIn page.
————————————————
About Investissement Québec
Investissement Québec’s mission is to play an active role in Québec’s economic development by spurring business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province’s administrative regions, the Corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists businesses with export activities.
Managing the energy in a freezer is not just a question of saying that I’m going to turn down the temperature. – Nicholas-P. Pedneault, CEO
At a time when the demand for food aid is higher than ever, this innovative initiative enables food to be recovered and redistributed, in line with Bel Canada and Congebec’s shared objective of reducing food waste.
“More than 46 per cent of food is wasted every year in Canada. This program, in collaboration with Congebec and Food Banks of Quebec, will play a key role in the fight against food waste and insecurity while optimizing the performance of our supply chain. As a sector leader, we hope our commitment will encourage other companies to join this great collaboration.” – Bel
On November 1, 2024, Congebec, the largest provider of refrigeration services in Quebec and one of the largest in Canada, celebrates its 50th year in business. Under the leadership of CEO Nicholas-P. Pedneault, Congebec has expanded significantly over the past decades, driven by the same dedication to supporting Canadian businesses and food security it has always had. Photo : Archimed Studio.
« Si cette transaction n’avait pas eu lieu en 2015, Congebec serait probablement géré, aujourd’hui, par des intérêts étrangers! », répond le président et chef de la direction de l’entreprise, dont l’actionnariat est maintenant composé que de membres du comité de direction.
Il y a cinq ans, le fournisseur de services réfrigérés pour le secteur alimentaire recevait une offre d’achat non sollicitée alors que le fondateur de la compagnie, Laurier Pedneault, souhaitait transférer son entreprise de 400 travailleurs à son fils Nicholas-P.Pedneault.
Devant cette offensive d’un joueur canadien, qui appartient aujourd’hui à des Américains, fiston avait mis les bouchées doubles pour dénicher les capitaux nécessaires pour bloquer cette transaction.
Nicholas-P.Pedneault obtenait, quant à lui, 2 % des actions de la compagnie qui avait un chiffre d’affaires aux alentours de 60 millions $.
Récemment, quatre hauts dirigeants, dont le président et chef de la direction, Nicholas-P.Pedneault, ont fait une offre pour racheter l’ensemble des parts des partenaires externes.
Le quatuor est maintenant seul aux commandes de l’entreprise de Québec avec un chiffre d’affaires de près de 100 millions $. Le montant de la transaction n’a pas été dévoilé.
«On peut dire que nous sommes maintenant à 90 % et demi Québécois. J’ai un actionnaire qui est Franco-Ontarien», répond au Journal avec humour Nicholas-P.Pedneault, qui est maintenant actionnaire majoritaire.
Fondé en 1974, Congebec est un fournisseur d’entreposage à température multiple qui offre également des services de distribution pour l’industrie alimentaire. L’entreprise possède 13 installations, soit au Québec, en Ontario, au Manitoba, en Saskatchewan et en Alberta. Chaque année, près de 2 milliards $ de nourriture transigent à travers ces établissements.
Plan de croissance
Au cours des prochaines semaines, les nouveaux propriétaires travailleront à pondre le prochain plan de croissance de 5 ans de l’organisation. D’ici décembre, les travaux pour un nouvel entrepôt frigorifique d’environ 250 000 pieds carrés devraient commencer sur la Rive-Nord de Montréal.
La facture du projet pourrait dépasser les 60 millions $. Entre 50 et 100 emplois seront créés. L’ouverture est prévue pour 2021.
«Avec la consolidation dans notre secteur, il faut être très imaginatif pour la suite des événements. Avec mon équipe, nous allons être créatifs», promet le président, qui ne prévoit pas, pour le moment, de percée aux États-Unis.
Entre 2015 et 2020, Congebec a consolidé sa présence en Ontario et dans l’Ouest canadien. L’entreprise a aussi avalé la compagnie Shamrock Cold Storage, mis sur pied une division de transport et ouvert un entrepôt à Toronto.
Du côté de Desjardins Capital, la direction se réjouit de voir que Congebec est demeuré une entreprise d’ici. Desjardins Capital, Investissement Québec et Fondaction CSN ont agi à titre de prêteurs dans la transaction.
«Nous sommes très fiers d’avoir pu intercepter une entreprise qui était trop grosse en 2015 pour être rachetée par l’équipe de direction. Aujourd’hui la business va bien et on va continuer de les aider», indique pour sa part Luc Ménard, chef de l’exploitation de Desjardins Capital.
Managing the energy in a freezer is not just a question of saying that I’m going to turn down the temperature. – Nicholas-P. Pedneault, CEO
At a time when the demand for food aid is higher than ever, this innovative initiative enables food to be recovered and redistributed, in line with Bel Canada and Congebec’s shared objective of reducing food waste.
“More than 46 per cent of food is wasted every year in Canada. This program, in collaboration with Congebec and Food Banks of Quebec, will play a key role in the fight against food waste and insecurity while optimizing the performance of our supply chain. As a sector leader, we hope our commitment will encourage other companies to join this great collaboration.” – Bel
On November 1, 2024, Congebec, the largest provider of refrigeration services in Quebec and one of the largest in Canada, celebrates its 50th year in business. Under the leadership of CEO Nicholas-P. Pedneault, Congebec has expanded significantly over the past decades, driven by the same dedication to supporting Canadian businesses and food security it has always had. Photo : Archimed Studio.
Skyline Commercial REIT closed the purchase of nine temperature-controlled facilities in Quebec and Western Canada on Thursday afternoon from Quebec City-based Congebec Logistics for $190 million.
The facilities total 1.3 million square feet and are located in the Montreal area (with locations on the island of Montreal, Ste. Julie and Boucherville), Quebec City (three locations), Calgary, Saskatoon and Winnipeg.
“We really like the sector,” Michael Mackenzie, president of Skyline Commercial REIT, told RENX in an exclusive interview. Frozen food is “seeing double-digit annual growth right now. It’s virtually recession-proof in nature.”
Mackenzie notes that in moving into the cold-storage sector, “we’re actually not being pioneers here.” For example, Vancouver-based VersaCold is jointly owned by Toronto-based private equity real estate investment firm KingSett Capital and Montreal-based Ivanhoé Cambridge, the real estate subsidiary of institutional fund manager Caisse de depot et placement du Québec.
Congebec to manage facilities
Mackenzie adds Skyline Commercial likes Congebec and its management team, which will continue to manage the buildings. “For all intents and purposes, (Congebec) will do most of the heavy lifting. Our management teams are more on the supervisory level.”
The buildings Skyline Commercial is acquiring are primarily purpose-built freezer facilities designed to manage cold temperatures, with insulated ceilings and walls and glycol in the floors. The buildings have clear heights of around 38 feet.
Founded in 1974, Congebec is the largest provider of refrigerated services in Quebec, the second-largest in Canada and the 11th-largest in North America, Mackenzie says.
“These are relationship-type deals, because we’re going to be living together for 20 years,” Mackenzie says of Congebec. “That was part of our decision-making process because we think that this is a company that we can grow with.”
Skyline Commercial is buying the buildings at below replacement cost and the properties are “mission-critical” to tenants. “We felt it was a good investment for us,” says Mackenzie.
Skyline’s largest acquisition in recent years
It’s the largest transaction for Skyline Commercial REIT in the last three or four years.
They facilities are fully leased and all are on long-term leases. “For our purpose, they’re all single tenants.” One of the Quebec City buildings is leased directly by the grocer Metro on a long-term lease and is the only building of the nine not leased back to Congébec.
The facilities in Ste. Julie and Calgary – which was built in 2007 and has just been expanded significantly – are the largest at 200,000 square feet, while several are in the range of 100,000 to 130,000 square feet.
While there are no current plans to make changes to the properties, “there are some opportunities to expand facilities in certain markets and we’ll be looking at that” with Congebec, Mackenzie says.
The Congebec deal was brought to market by Colliers International last April. “I think that there were a number of regional bids, but I think we were the only ones that stepped up to do a national bid,” he says.
With the transaction, Skyline Commercial will have about 99 properties under management with an approximate portfolio value of $750 million.
“We’re looking for long-term, stable income in predominantly newer facilities, specifically for the purpose of providing a long-term stable income for our unitholders,” Mackenzie says.
REIT’s portfolio has evolved
The REIT’s portfolio has evolved over the years, he says: “When it began, it was primarily a multi-tenant product. We’ve been slowly reducing that focus to move on to larger single-tenant, higher-covenant type deals with longer-term income.”
Mackenzie says 2018 has been an “exceptional” year for Skyline Commercial. “Our debt is well-positioned as we’re watching interest rates rise,” he says. “We managed to take advantage of the market that was available to us over the last couple of years on the credit side.”
He adds the REIT is “well positioned to weather any changes.”
As it now stands, “our biggest challenge is continuing to find these kinds of acquisitions which you have to pounce on when the opportunity arises.”
The Skyline Group of Companies was founded in 1999 and has five investment products: Skyline Commercial REIT, Skyline Apartment REIT, Skyline Retail REIT, Skyline Clean Energy Fund and Skyline Mortgage Investment Trust. Together, they manage approximately $3.5 billion in assets.
Managing the energy in a freezer is not just a question of saying that I’m going to turn down the temperature. – Nicholas-P. Pedneault, CEO
At a time when the demand for food aid is higher than ever, this innovative initiative enables food to be recovered and redistributed, in line with Bel Canada and Congebec’s shared objective of reducing food waste.
“More than 46 per cent of food is wasted every year in Canada. This program, in collaboration with Congebec and Food Banks of Quebec, will play a key role in the fight against food waste and insecurity while optimizing the performance of our supply chain. As a sector leader, we hope our commitment will encourage other companies to join this great collaboration.” – Bel
On November 1, 2024, Congebec, the largest provider of refrigeration services in Quebec and one of the largest in Canada, celebrates its 50th year in business. Under the leadership of CEO Nicholas-P. Pedneault, Congebec has expanded significantly over the past decades, driven by the same dedication to supporting Canadian businesses and food security it has always had. Photo : Archimed Studio.
La relève est assurée chez Congébec Logistique. Et c’est un Pedneault qui continuera de diriger le plus important fournisseur au Québec – le deuxième au Canada – de services réfrigérés dans la chaîne d’approvisionnement alimentaire au Québec.
Cap vers Vancouver
Managing the energy in a freezer is not just a question of saying that I’m going to turn down the temperature. – Nicholas-P. Pedneault, CEO
At a time when the demand for food aid is higher than ever, this innovative initiative enables food to be recovered and redistributed, in line with Bel Canada and Congebec’s shared objective of reducing food waste.
“More than 46 per cent of food is wasted every year in Canada. This program, in collaboration with Congebec and Food Banks of Quebec, will play a key role in the fight against food waste and insecurity while optimizing the performance of our supply chain. As a sector leader, we hope our commitment will encourage other companies to join this great collaboration.” – Bel
On November 1, 2024, Congebec, the largest provider of refrigeration services in Quebec and one of the largest in Canada, celebrates its 50th year in business. Under the leadership of CEO Nicholas-P. Pedneault, Congebec has expanded significantly over the past decades, driven by the same dedication to supporting Canadian businesses and food security it has always had. Photo : Archimed Studio.
