Pomerleau gets $150M investment from CDPQ
The builder plans to begin expanding its residential construction business across Canada.
Key Takeaways:
- CDPQ is investing $150 million in Pomerleau on top of $50 million it invested in 2018.
- The firm’s investments helped Pomerleau acquire residential builder ITC Construction Group earlier this year.
- Pomerleau says it plans to use the acquisition and investments to expand its residential offerings across Canada.
The Whole Story:
Pomerleau is getting a massive new investment from one of its strategic partners as it looks to expand.
CDPQ announced it will invest an additional $150 million in Pomerleau to accelerates its growth in Canada. The global investment group’s support played a significant role in Pomerleau’s acquisition of Vancouver-based residential builder ITC Construction Group earlier this year.
“We are proud that the CDPQ is extending its commitment to our 4,000 people, our values and our growth strategy,” said Pierre Pomerleau, Pomerleau president and CEO. “CDPQ is an outstanding partner and shareholder, and we are delighted that this renewed confidence can support the deployment of our strategic plan.”
CDPQ officials noted that so far their investment strategy has paid off big. The firm invested $50 million into Pomerleau in 2018. Since then, the construction company has more than doubled its revenues from $1.8 billion to $4 billion, and more than tripled its order backlog from $3.5 billion to $11 billion. Founded 60 years ago in the Beauce region of Québec, Pomerleau’s Canadian projects outside of Quebec now account for almost 50 per cent of its revenues.
“CDPQ is proud to have been at the company’s side during this expansion and looks forward to continuing our commitment to support the execution of the company’s strategic development plan,” said Kim Thomassin, executive vice-president and head of Québec at CDPQ. “In addition to fostering the organization’s expansion across Canada with the ITC Construction Group acquisition, this investment is aligned with our desire to develop more sustainable living environments, and Pomerleau continues to play a major role in that regard.”
The acquisition of ITC was the largest in Pomerleau’s history. The company says it plans to use it to provide sustainable and innovative housing solutions across the country. ITC has 200 residential projects worth more than 5 billion dollars under its belt in B.C. and Alberta, and 18 major residential projects underway.
“Over time, Pomerleau has become more than a construction company,” said Pomerleau. “Today, it structures alternative and collaborative models of delivery and financing. This allows us to tackle a wide range of increasingly complex projects – from hospitals to industrial facilities, wind farms and light-rail transit. We are also proud to offer much-needed solutions to Canadians, including low-carbon buildings as well as public transit and renewable energy infrastructure that help tackle climate change and improve the quality of life.”
