TORONTO, July 21, 2005 - VenGrowth Private Equity Partners Inc. ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a $3.4 million investment in Samplex Marketing Solutions Corporation ("Samplex").
The VenGrowth Traditional Industries Fund Inc., The VenGrowth III Investment Fund Inc. and VG Mezzanine I Limited Partnership provided a subordinated loan to the Toronto-based company, and also acquired a minority equity position. The financing enabled Todd Blair, former general manager of Samplex, to lead the purchase of the company from previous owner Advantex Marketing International Inc. (TSX:ADX).
"Founded in 1983, Samplex pioneered selective sampling programs for packaged good manufacturers in Canada and is the dominant player in that market," said Graham McBride, Managing General Partner, VenGrowth. "Todd has continued to build on that success since taking the reins in 2004, and we are excited to partner with Samplex to help realize the full potential of this business."
Samplex creates and distributes demographically themed product sample packs for large, brand name packaged goods manufacturers. Samplex groups product samples and coupons together in themed packs for sale to consumers through grocery stores, drug stores and mass merchandisers. An example is a pack comprised of health and beauty products targeted to teenagers and sold through National Grocers and Shoppers Drug Mart.
"Packaged goods manufacturers are increasingly using product sample packs to target specific demographic groups and generate business by encouraging consumers to trial their products," said Todd Blair, President, Samplex Marketing Solutions Corporation. "We plan to build on the many long-term relationships that we have in place with retail and packaged goods partners. I'm delighted to partner with VenGrowth, a private equity leader, and utilize its support in executing on our growth strategy."
About VenGrowth's Mezzanine Finance Team
VenGrowth's Mezzanine Finance Team specializes in financing solutions for mid-market Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. Investments are made on behalf of shareholders in participating VenGrowth Funds. The Team primarily invests using debt instruments with the objective of generating interest and dividend income to the Funds. In addition, the Funds will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. This group of VenGrowth professionals is led by Graham McBride, a highly regarded mezzanine financing expert with over 19 years of experience.
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.
About Samplex
Samplex is a leading consumer marketing company with a long history of connecting consumers to the products they need and want at key times of their lives. Samplex's product sampling packs give consumers the opportunity to try out a variety of national brand products at a significantly discounted price. Samplex takes care to bundle together an appealing assortment of full and trial-sized product samples, reflecting a particular life event, theme or interest.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
