Vengrowth Private Equity Partners Inc.

Vengrowth Private Equity Partners Inc.

January 15, 2008 08:00 ET

VenGrowth Recoups Investment in MPI Packaging Ahead of Schedule

Specialty maker of plastic bottles repays its debt to VenGrowth twice as fast as anticipated thanks to significant revenue growth

TORONTO, ONTARIO--(Marketwire - Jan. 15, 2008) - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced that VenGrowth investee company MPI Packaging Inc. ("MPI") has repaid all of the capital originally invested by VenGrowth. At the same time, VenGrowth continues to hold a minority equity stake in MPI, enabling participation in potential future growth of the manufacturer of customized PET plastic bottles.

In June, 2005, The VenGrowth Traditional Industries Fund Inc., The VenGrowth III Investment Fund Inc. and VG Mezzanine I Limited Partnership provided a $4.3 million subordinated loan to MPI, which has now been repaid two and a half years ahead of schedule. MPI has enjoyed revenue growth of around 40% per year as it continues to win new clientele and expand operations.

"The earlier than expected payment is a testament to MPI's experienced management team," said Graham McBride, Managing General Partner, VenGrowth. "We are very pleased that VenGrowth will continue to hold equity in MPI, which continues to strengthen its balance sheet while focusing on building its unique business."

Based is Mississauga, Ontario, MPI specializes in the design and manufacturing of custom Polyethylene Terephthalate ("PET") plastic bottles, which hold a range of liquids such as wine, milk, and personal care products. MPI serves a distinct niche by providing superior quality and service to its customers, which are not typically prioritized by larger bottle manufacturers.

"We are delighted that we've been able to repay all of the capital owed to VenGrowth sooner than anticipated," said Ron O'Brien, President, MPI Packaging Inc. "VenGrowth's hands-on involvement has been a key factor in the success of MPI."

"We look forward to continuing to work together with the shared goal of building an even more successful provider of innovative customized packaging solutions," added O'Brien. "Led by both consumers and businesses, demand for PET plastic packaging is escalating, since PET is the most flexible and recycled plastic in the world."

About VenGrowth Traditional Industries Group

VenGrowth Traditional Industries Group specializes in financing solutions for mid-market Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. The Group primarily invests using debt instruments with the objective of generating interest and dividend income to participating VenGrowth Funds. In addition, the Funds will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. Formed in 2003, the Group had invested over $130 million into 18 companies as at January 1, 2008. The Group is led by Graham McBride, a highly regarded mezzanine financing expert with over 20 years of experience.

About VenGrowth

With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.3 billion in almost 200 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.

About MPI Packaging Inc.

MPI specializes in the design and manufacturing of Polyethylene Terephthalate ("PET") plastic bottles, in various sizes capable of holding a broad range of liquids such as; wine, milk, personal care products, liquor, motor oil etc. MPI focuses on providing superior quality and service in support of customers that are not typically prioritized by larger bottle manufacturers. MPI also develops custom injection tools and blow moulds to create unique features that allow customers to differentiate their products. With facilities in both Toronto, Ontario and Riverside, California, MPI is able to transport cost effectively anywhere in North America. For more information, please visit www.mpi-pet.com.

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