Novacap Acquires Interest in Globe Electric Company

Novacap has acquired a majority interest in Globe Electric Company. Fonds de solidarité FTQ and Fondaction co-invested on this transaction in partnership with Novacap.

Globe Electric is a designer and manufacturer of consumer lighting and other electrical products including light fixtures, power and charging products, and connected home technologies. Globe’s products are sold through more than 40,000 retail locations across North America and online across more than 20 e-commerce channels.

Globe Electric was founded in 1932 and is headquartered in Montreal. Edward Weinstein, the third-generation CEO of Globe Electric, along with other members of the company’s senior management team, will retain substantial ownership in the company and remain in their current roles.

“We are grateful for the enthusiastic support of Novacap and its partners in this transformative transaction for our company,” said Mr. Weinstein. “Their passion for what they do matches our own. This investment is truly growth capital, allowing us to continue what we have done best for 90 years: perpetually innovating; remaining customer-obsessed; taking care of our employees and suppliers; while expanding into new distribution channels and geographies.”

“Globe Electric is a great Canadian success story, and we are thrilled to be a part of its next chapter,” said Michel Côté, a senior partner at Novacap. “Novacap has always been a champion of ambitious owner-entrepreneurs in Quebec, and Globe Electric has embodied that spirit for almost a century.”

Novacap invests in middle-market companies within traditional industries and in companies in the technology, media, and telecommunications sector. In February 2021, the firm closed its sixth fund – its largest ever – with just over $1.8 billion of capital. Novacap was founded in 1981 and has offices in Toronto, and near Montreal in Brossard, Quebec.

“Our partnership not only provides capital, but also our extensive experience in building world-class companies, helping entrepreneurs like Eddie achieve their expansion goals,” said Jamie Cartwright, a principal at Novacap. “We are very excited to lead this investment alongside Fonds de solidarité FTQ and Fondaction.”

Fonds de solidarité FTQ is a development capital investment fund founded in 1983 by the Quebec Federation of Labor, the largest labor union in Quebec with over 500,000 members.

“We are proud to join forces with Globe Electric, Novacap and Fondaction with a significant investment to ensure that the company remains in Québec hands,” added Janie Béïque, the CEO of Fonds de solidarité FTQ. “Investing in a better society means supporting the growth of local companies and good quality jobs for Québec workers. Thanks to a culture of innovation, Globe Electric is well-positioned to maintain its market leadership.”

Fondaction invests the retirement savings of more than 50,000 unionized and non-unionized workers in small and medium-sized businesses based in Quebec.

Houlihan Lokey was the financial advisor to Globe Electric on this transaction.

© 2021 Private Equity Professional | May 14, 2021

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