Features
GLV to split water treatment, pulp and paper divisions

One of the founding families of GLV Inc. has offered to buy the company’s pulp and paper division, allowing the water treatment division to continue operations as “a pure water treatment company” under the name Ovivo.

GLV announced a definitive agreement for the sale of its Pulp & Paper Division for $65 million on a debt-free basis to a corporation owned by Richard Verreault, the president and chief executive officer of GLV and Laurent Verreault, the executive chairman of the board of GLV and a founder of the company. A statement from GLV says the transaction “will allow GLV to become a pure provider of water treatment products and solutions in a rapidly growing industry with attractive long-term fundamentals.”

Upon closing of the transaction, Richard Verreault will step down from his current roles of president and chief executive officer and director of GLV and Laurent Verreault will continue to act as executive chairman of the board of directors. The Verreaults will remain shareholders of the corporation, exercising the same voting power.

“The Board of Directors of GLV has been considering the sale of the Pulp & Paper Division for quite some time,” said Marc Courtois, chair of GLV’s committee of independent directors, which is overseeing the transaction. “Over the past years, GLV has solicited and received expressions of interest for the Pulp & Paper Division, none of which was superior to today’s proposed transaction.”

Laurent Verreault, executive chairman of the board of GLV said: “[Richard and I] believe that the sale of the Pulp & Paper Division is the right strategic decision for GLV to focus on its core water treatment business and strengthen its financial flexibility to capitalize on growth opportunities. We are also pleased to acquire the Pulp & Paper Division, the founding activities of GLV and to ensure that its head office will remain in Quebec”.

GLV Group was founded in 1975 by Louis Laperrière and Laurent Verreault. Then called GL&V, it was a service and equipment provider for major manufacturers in the pulp and paper industry. Through strategic acquisitions over the years, the company expanded and positioned itself by adding to its innovative technological solutions for separating liquids from solids.
In the early 2000s, seeking diversification, the company targeted the water treatment sector which was facing a growing demand.

Currently, GL&V Pulp and Paper Group designs and markets equipment used in various stages of pulp and paper production, from pulp preparation to sheet forming and finishing. GL&V serves the global market with spare parts, rebuilds, upgrades and optimization services for new and existing equipment.

Brands and intellectual property owned by GL&V Pulp and Paper Group include: TamPulping, KanEng Industries, LaValley, Sandy Hill, Beloit Lenox Div., Cameron, Hedemora, Beloit Jones Div., Albia, Black Clawson-Kennedy, Impco, and Celleco.

The transaction to split the two divisions of GLV has been approved unanimously by the Board of Directors of GLV, but is subject to shareholder vote. As well, there is a 45-day “go-shop” period during which National Bank Financial will solicit third-party interest in submitting a proposal for the Division.

GLV Group’s business units operate in more than 25 countries and have approximately 1,680 employees.