TORONTO, January 9, 2007 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a $3.1 million investment in Roll-Tite Inc. ("Roll-Tite"). The financing was led by the VenGrowth Traditional Industries Group.
The VenGrowth Traditional Industries Fund Inc. and The VenGrowth III Investment Fund Inc. acquired an equity stake in Roll-Tite. The company's majority shareholder and CEO, Graeme Lowry, will utilize the funds to continue the aggressive expansion of the business that he has been pursuing since he acquired the company in 2001.
Roll-Tite manufactures tarps for flatbed trailers, which are mounted on sliding frames to create a covered flatbed similar to a van. The patented design allows a single operator to open and close the Roll-Tite system in minutes, saving what usually takes one or two hours per load compared to other tarping systems.
The Roll-Tite solution is durable, lightweight and most importantly safer than manually tarping cargo. Customers utilizing Roll-Tite's systems have seen fewer worker compensation claims because truck drivers get to keep both feet on the ground while loading or unloading. Also, cargo insurance rates are often cheaper for Roll-Tite customers due to the system's unsurpassed durability and quality in protecting the truck's cargo.
Demand for Roll-Tite's systems is poised to climb with only two percent of North American flatbed trucks having installed retractable tarping systems. Canada's provincial and U.S. state governments have been progressively mandating the use of tarps for certain loads. Also, there has been an overall trend in the North American trucking industry to legislate the reduction of consecutive working hours for truck drivers. Customers using Roll-Tite's patented tarp solutions spend less time loading and unloading their trucks and more time on the road - leading to higher profits.
"Over the past five years, Roll-Tite's management has proven its ability to profitably grow the company," said Michael Wolfe, General Partner, VenGrowth. "We have been extremely impressed with the company's progress to date under Graeme Lowry's leadership. We are very supportive of the growth strategy going forward and confident of Graeme's ability to continue to drive the success of the business."
With a large manufacturing plant located near Woodstock, Ontario, Roll-Tite has more than 90 employees and 19 branches and dealers in Canada and the U.S. to sell and service its tarping solutions.
"Taking on an equity partner was not a simple decision. However, after six years of compound annual sales growth of 40 percent, it was the right decision for the company and I am confident that VenGrowth is the right partner," said Graeme Lowry, CEO, Roll-Tite. "VenGrowth's investment in Roll-Tite will enable us to continue our ambitious growth strategy of increasing our market share and customer base across North America while continuously improving our product designs and automating our production facilities. It also paves the way for wider employee ownership which is important to me. I certainly did not build this company from $3 million to $19 million in sales by myself. We have a great team and the world's greatest customers."
About VenGrowth Traditional Industries Group
The VenGrowth Traditional Industries Group 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 stakeholders 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 over 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 Roll-Tite
More than 20 years ago, Roll-Tite made the first retractable tarp system to be put on the market. Now the company has grown to be a premier manufacturer and installer of its patented tarp solutions used in flatbed trucks. With continual research and development, customer feedback and a team of Engineers, Roll-Tite continues to be a North American industry leader.
www.roll-tite.com
For further information:
Angus Fisher
Manager, Media & Communications
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
