Economy Minister Pierre Fitzgibbon announced Wednesday that Investissement Québec will take a nearly $100 million stake in Polycor, which had been a source of controversy because it was represented by a lobbyist friend. of the chosen one.
Mr. Fitzgibbon declared that this injection of public funds will allow the state-owned company to ensure, in particular, the maintenance in Quebec of the head office of the company, which is active in the extraction sector.
“With that, we are securing and solidifying a head office in Quebec, we are maintaining 350 jobs and we are supporting a company that wants to automate and conquer new markets,” he said.
Mr. Fitzgibbon was reprimanded by the Ethics Commissioner, Ariane Mignolet, in November 2020, because of his friendly and financial ties with a lobbyist, Luc Laperrière, whom he received in the company of business leaders, including Polycor.
Mr. Fitzgibbon admitted to being “excited” about a quartz export project presented to him by Polycor in the summer of 2019.
“My excitement for Polycor goes back to before that,” he said Wednesday.
Important presence
Mr. Fitzgibbon said he has known since 2015 the leader of Polycor, Patrick Perus, whose company notably operates granite quarries in Quebec.
More recently, he met with the company’s management and referred the file to IQ in view of the stake announced on Wednesday.
Mr. Fitzgibbon dismissed any possibility that, given the controversy surrounding his ties to Mr. Laperriere, his participation in the announcement creates a new appearance of a conflict of interest.
“I forced myself to be here,” he said.
Chairman and CEO Patrick Perus explained that Polycor’s major shareholder, Birch Hill Partners, led the discussions with IQ. “I haven’t had a date with anyone,” he said.
Mr. Laperrière had been mandated, in July 2019 and August 2020, to take steps to obtain financial participation in the form of loans and equity. The amounts were to be used in particular to create jobs and invest in rolling stock for a quartz quarry project on the North Shore.
On Wednesday, Mr. Perus said that this project for which he had commissioned Mr. Laperriere was finally abandoned due to the controversy sparked by his links with Mr. Fitzgibbon.
In November 2020, Ms. Mignolet noted a breach of article 15 of the code of ethics on the part of Minister Fitzgibbon “in the context of his exchanges and meetings with Mr. Laperrière concerning the files of Alter & Go, the municipality of Adstock and Polycor, since he held a personal interest that could influence his independence of judgment in the exercise of his office”.
Maintenance in Quebec
With Wednesday’s announcement, IQ and the Quebec leaders of Polycor hold 20% of its capital.
As a government agent, IQ owns $60 million in preferred shares in Polycor and $38 million in common shares through its own funds.
Polycor was until very recently owned by the Canadian private equity firm TorQuest and by two American investment funds, Wynnchurch Capital and PNC Mezzanine.
Toronto-based investment fund Birch Hill Equity Partners Management now owns the company, through BH Polycor Holding.
The government’s support is accompanied by clauses providing for the continuation of Polycor’s activities, as well as the maintenance of jobs and the company’s head office in Quebec.