The Ontario Teachers’ Pension Plan is acquiring a majority stake in a manufacturer and distributor of elevator components and systems.
Before the investment, Vantage Elevator Solutions was wholly owned by Golden Gate Capital. The California-based asset management company will retain a significant minority stake in the business.
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Vantage sells its products to hundreds of independent elevator contractors and several multinational elevator companies. It employs about 900 staff members in offices based in Canada, the U.S. and the U.K.
The investment is part of a broader strategy from the Ontario Teachers’ private capital team, which has been targeting high-performing and diversified industrial businesses. The move follows recent investments in two major packaging distribution businesses, both also based in North America.
In a press release, Karen Frank, senior managing director of equities at the Ontario Teachers’, commented on the resilience of the elevator component sector as well as its potential for growth. “We look forward to partnering with [chief executive officer] Ron Cauchi, the Vantage management team and Golden Gate Capital to support the business as it enters its next stage of growth.”
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In other news, the Caisse de dépôt et placement du Québec is acquiring a significant minority stake in a Mexican medical diagnostic service provider.
Grupo Diagnóstico Aries is a consortium that includes diagnostic testing centres, blood banks and sixteen mobile units. Its nine brands operate out of 249 locations in nine Mexican states, while its testing facilities serve more than 150 medical clinics.
In a press release, Martin Laguerre, executive vice-president and head of private equity and capital solutions at the Caisse, noted the company’s approach to strategic growth. “The management team have demonstrated sound strategic thinking and strong operating capabilities to drive the company’s success to date.”
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