Alfar Capital has announced that it has sold its stake in Megatech, a Quebec City-based business specializing in machining complex, high-precision parts, after the successful conclusion of Megatech’s growth plan. This is Alfar Capital’s first investment exit since the fund’s creation.
“Alfar Capital’s support gave us the boost we needed to ramp up our growth and carry out our vision,” said Jean Blanchet, Megatech’s CEO. “As we implemented our growth plan, Alfar Capital helped us professionalize and optimize our business processes, make major investments in equipment and have the confidence to push ourselves to new heights.”
Throughout its investment in Megatech, Alfar Capital placed human capital at the very core of the growth plan. Every member of both staff and management threw their weight behind the growth objectives that were set when Alfar Capital first joined the company, and everyone has benefited from the resulting value creation.
“We’re so proud of what we’ve achieved with Megatech and of how we were able to recognize everything the employees did to increase the company’s value,” said Fares Kabbani, Founder and Managing Partner at Alfar Capital. “Now, as Megatech moves on to the next stage of its growth strategy, we’re confident we’ve found the right partner to support them, and we wish them all the best going forward.”
This new partner is MiddleGround Capital, a US private equity firm that manages assets worth over $3 billion US and has the detailed knowledge and extensive experience in the Megatech’s industry to grow the company even further.
Stifel acted as exclusive financial advisor to Megatech in its sale to MiddleGround Capital, while Fasken acted as legal counsel for Alfar Capital.
About Megatech
Founded in Quebec City in 1992, Megatech is a leader in the machining industry, distinguishing itself from its competitors by its exceptional quality and precision. Success is attributable to the Company’s employees, equipment, processes, and engineering capability along with a superb MRP system. Supported by the latest technology and by a team of trusted partners and subcontractors, Megatec’s mission is to be the best machining shop in Canada, specialized in high precision and complex part. megatechaq.com
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