Several Quebec financial institutions, including the Caisse de depot, are helping Manac's founding family with the privatization of the nearly 50-year-old truck trailer manufacturer.
The family of Marcel Dutil is investing $36 million while Quebec's pension fund manager, its Quebec manufacturing fund, the Solidarity labour fund and Investissement Quebec are providing $104 million in equity investments and loans.
The transaction pegs Manac's (TSX:MA) enterprise value at $186 million, including debt.
Shareholders other than the investing partners will receive $10.20 per share, which represents an 18 per cent premium to Manac's shares price before the company announced it was examining its strategic options on March 30.
The move comes just 18 months after it completed an initial public offering that netted the company about $40 million in gross proceeds, about half of which was used to repay debt.
Charles Dutil will remain president and CEO.
The Dutil family said the transaction provides stable ownership and puts the company back entirely under the control of Quebec-based institutions.
"Our partners will play an important role in Manac's next growth phase," it said. ". . . This transaction is an important step in its continuity and strong Quebec presence."
A special meeting to approve the transaction will be held before Oct. 7.
The Quebec-based company, which makes specialty trailers such as grain hoppers and logging trailers sold across North America, began operations in 1966 and acquired Canam Steel (TSX:CAM) in 1972.
In 2004, Canam Manac sold the semi-trailer business to the founding Dutil family. After going public, its largest owners were the Quebec Federation of Labour's Solidarity Fund, the Caisse de depot et placement du Quebec and Fiera Capital, which together own 41 per cent of its shares, according to Thomson Reuters.
Manac acquired B.C.-based Peerless Ltd. last summer for $14.75 million.
The company's net income decreased 26 per cent to $9.7 million last year despite higher revenue at $330.7 million due to the addition of Peerless.
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