Canadian Manufacturing

Novacap Industries completes first continuation vehicle

The company reported an increase in revenue to more than $1 billion per annum following Novacap's investment in Master back in 2014.   

December 16, 2021  by CM Staff

Louis St-Laurent CEO Master Group, Jacques Foisy Chairman of the Board & Managing Partner Novacap and Jean-François Routhier, Senior Partner Novacap Industries (CNW Group/Novacap Management Inc.)

MONTREAL — Novacap, a North American private equity firm, announced that its industries team has completed its first private equity continuation vehicle and the second for Novacap.

Novacap Industries V and the continuation vehicle acquired a majority interest in The Master Group from Novacap Industries III and other shareholders. Following this transaction, the total capital raised to support the growth of Master Group stands at CAD$1.1 billion.

The continuation vehicle includes participation from several institutional investors including, Fonds de Solidarité FTQ, Fondaction, Portfolio Advisors, Lexington Partners, Blackstone Strategic Partners, Whitehorse Liquidity Partners and iA Financial Group among others.

This announcement follows Master’s acquisition of U.S.-based Value-Added HVAC Distributors and its three subsidiaries, Virginia Air Distributors, Allied HVAC Distributors and South Carolina Air Distributors last week. The company has stated that this move marks its expansion into the US market after expanding in Canada from coast to coast.

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“Over the years, we have nurtured deep relationships with the entrepreneurs and their companies. The continuation vehicles allow us to expand our strategic ambitions and build scale in a disciplined manner. We look forward to creating sustainable value with Master as they realize the full scope of their ambition,” said Jacques Foisy, Chairman of the Board & Managing Partner at Novacap in a statement.

The company reported an increase in revenue to more than $1 billion per annum following Novacap’s investment in Master back in 2014.

The company stated it has 1,250 team members and operates in 68 branches and five distribution centres across Canada and the United States.

“The company is executing on its strategic plan to double the business over the next five years by increasing its presence in Canada and the United States through steady organic growth and acquisitions,” said Louis St-Laurent, CEO at Master in a statement.


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