Toronto, January 6, 2005 - VenGrowth Capital Partners ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced the closing of an investment in one of the largest value beer producers in Ontario, Lakeport Brewing Corporation ("Lakeport").
The VenGrowth Traditional Industries Fund Inc. and The VenGrowth II Investment Fund Inc. participated in the financing. As a result of the financing event, Lakeport President and CEO Teresa Cascioli is now the majority shareholder of the Hamilton-based company. Ms Cascioli previously owned 18% of Lakeport.
Ernst & Young named Ms. Cascioli Ontario Entrepreneur of the Year in the Turnaround category in October 2004. The Hamilton native has played the lead role in managing the acquisition of the brewery out of bankruptcy protection since taking the reins in 1999. Lakeport is now the third largest supplier of home consumer beer in Ontario and Lakeport Honey Lager is currently one of the Top 10 selling beer brands at The Beer Store. Lakeport received an Ontario Business Achievement Award from the Ontario Chamber of Commerce in November 2004.
"We are delighted that VenGrowth has chosen to partner with Lakeport at this exciting time in the company's history", said Ms. Cascioli. "The financing will enable Lakeport to build on significant recent inroads made into the Ontario beer market."
Lakeport is a diversified beverage company focused on the production of value-priced beers for the take-home market. Lakeport brands compete as lower-priced, value alternatives to heavily marketed beer brands. Lakeport's proprietary brews include Lakeport Honey Lager, Lakeport Pilsener, Lakeport Light, Steeler and the Mexican-style Brava beer. Lakeport is also a leader in the beverage co-packing business, producing a wide variety of specialty beverages including Mott's Clamato Ready-to-Drink Caesar Products and Absolut Cut Vodka Coolers.
The deal represents the sixth investment completed by the VenGrowth Traditional Industries Fund - VenGrowth's most conservative labour sponsored investment fund ("LSIF") offering to date.
"Teresa and the management team at Lakeport have proven their desire and ability to compete with the biggest players in the Canadian beer market," said Graham McBride, Managing General Partner of VenGrowth. "We are looking forward to partnering with Lakeport to help the company continue to advance its proprietary beverage and co-packing business lines."
About VenGrowth Traditional Industries Fund
The VenGrowth Traditional Industries Fund Inc. is VenGrowth's most conservative labour sponsored investment fund ("LSIF"). Launched in November 2003, the Fund focuses on predominantly small and medium sized Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. The Fund invests primarily using debt instruments with the objective of generating interest and dividend income to the Fund. In addition, the Fund will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. The Fund is managed by a team of specialized VenGrowth professionals led by Graham McBride, a highly regarded mezzanine financing expert with over 19 years of experience. In addition to expert management, the Fund offers investors long-term performance potential, 100% RRSP-eligibility and, through its LSIF structure, eligibility for substantial tax credits. The Fund had net assets of $26.1 million as of December 31, 2004.
About VenGrowth
Founded in 1982, VenGrowth is dedicated to providing Canadians with superior, value-added alternative investment products. VenGrowth's seasoned investment professionals adopt a conservative, hands-on approach to investing in Canada's premier private equity opportunities - having invested over $1.1 billion in 180 companies to date. Today, the VenGrowth Funds manage over $1 billion in assets on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. In 2004, VenGrowth expanded its alternative investment strategy with the launch of retail structured products affiliate Criterion Investments. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. References to VenGrowth Capital Partners means VenGrowth Capital Partners Inc. and its affiliates. For more information, please visit www.vengrowth.com.
About Lakeport
Lakeport employs some 200 people at its Hamilton brewery. Lakeport pioneered the value-priced beer category, and its proprietary brews include Lakeport Honey Lager, Lakeport Pilsener, Lakeport Light, Steeler, and the Mexican-style Brava beer. Lakeport is also a leader in the co-packaging business, producing a wide variety of alcoholic and non-alcoholic specialty beverages. For more information, please visit www.lakeportbeverage.ca.
For further information:
Angus Fisher
VenGrowth Capital Partners Inc.
(416) 628 9255
afisher@vengrowth.com
