Borealis Capital Corporation

March 04, 2005 13:45 ET

Borealis Capital Acquires Canadian And U.S. Luggage Firms


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BOREALIS CAPITAL CORPORATION

MARCH 4, 2005 - 13:45 ET

Borealis Capital Acquires Canadian And U.S. Luggage
Firms

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) - Borealis Capital
Corporation announced today the acquisition of two leading North
American suppliers of luggage and bags. The firms were acquired from a
New York private equity company.

The companies are Holiday Group Inc. of Montreal, Canada's market leader
in designing, importing and distributing luggage, business bags, casual
bags, handbags, umbrellas and other accessories under more than 40 brand
names; and Travelpro International Inc. of Boca Raton, Florida, which
designs, imports, distributes and markets luggage, business bags and
casual bags under the Travelpro brand.

The Borealis Private Equity Fund, which has 12 Canadian institutional
investors, will own approximately 80 percent of the two companies.
ManuLife Capital as a co-investor will own approximately 10 percent, and
Holiday and Travelpro management approximately 10 percent.

"Holiday supplies about one-third of the Canadian market, while
Travelpro is one of the most recognized brands in the world with more
than 425,000 professional flight crew members carrying Travelpro luggage
as part of their uniform," commented Andre La Forge, Borealis senior
vice president. "We are very excited about partnering with two excellent
management teams and look forward to growing these companies over the
next several years through a combination of selected strategic
acquisitions and organic growth."

Both companies are growing faster than the luggage industry average and
have excellent cash flow.

Borealis Private Equity is a leading Canadian private equity firm based
in Toronto with committed capital of C$375 million. Borealis specializes
in either obtaining a control or an influential minority position in
Canadian companies in partnership with management requiring an equity
investment of between C$15 and C$50 million. Some of the most recent
investments include MAAX Inc., a leading North American manufacturer of
bathroom products and accessories, spas and kitchen cabinets and Vansco
Electronics, Canada's leading manufacturer and OEM supplier of
electronic components for the global heavy equipment market.

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