CarVal backing for reborn Davie Shipyard

NOVEMBER 20, 2012 — CarVal, an independent subsidiary of agribusiness giant Cargill, will support a revitalized Davie Shipyard following the just-completed acquisition of the Levis, Quebec, shipbuilder by ZM Industries Canada Inc.

Quebec’s Minister for Industrial Policy, Elaine Zakaïb, and Minister of Labor, Agnès Maltais, yesterday confirmed completion of the sale of Davie Shipyard Canada Inc. to ZM.

Although a Quebec Government press release identifies the acquisition as being by Zafiro Marine, it is understood that ZM Industries and Zafiro Marine are, in fact, independent entities within the same family of companies.

The Quebec Government press release says that, in addition to acquiring the entire share capital of Davie Shipyard Canada Inc. owned by Upper Lakes Group, ZM has also agreed to assume debts with Investissement Québec, valued at nearly $40 million.The release says that Zafiro Marine is being supported by investment fund manager CarVal, which will provide the necessary funding for operations and capital expenditures.

 Ms. Zakaïb said that the revival of Davie Shipyard will ensure more than 700 jobs over the next three years. She said she looked to the future with optimism, “especially with the possibility of building two ferries.”

“Our vision of growth for Davie Shipyard is based on the long term,” said Zafiro CFO James Davies. “Our goal is to bring this company to a higher level so that it resumes its place among the leaders. We have the necessary expertise and, above all, major financial partners to give new life to Davie Shipyard”.