Vic De Zen - Business of Vic De Zen PDF

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Business of Vic De Zen...

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Name: Vittorio “Vic” De Zen Country: Canada Education: Type of business: Plastic construction and building materials Main Achievements: Vic was ranked #86 in the top 100 richest people list Sth interesting about the person: Vic contributed $10 million to a 350-bed hospital in Ontario Biography: Vittorio “Vic” De Zen was twenty-one years old when he arrived in Toronto in Nov, 1962. He was originally from Caerano di San Marco in north of Venice and knew little of wealth and money. Looking for opportunity and prosperity he landed in Canada with his wife Angelina. In 1970, Vic created a company called Royal Plastics. Although, it had its start in a simple two-story building, it soon became what is known today as the Royal Group Technologies Ltd. In the very first year, the revenue was more than $270,000 and it only grew from there. It gradually became one if not the only largest company in North America that dealt in plastic construction and building materials. His peers and competitors were instantly impressed with his sheer determination and keen eye for business and he was awarded the title of Canadian Entrepreneur of the Year in 1995. Subsequently, he got the Order of Canada in the year 2002. Today, Royal Group Technologies operates out of Woodbridge, Ontario and deals with most of Latin America, Poland and China. The company specializes in window profiles and PVC pipes and has its own chemical plant. The company has also developed a revolutionary construction technique called the Royal Building System where, within a few days, sturdy structures can be erected using PVC pipes filled with concrete. Like any successful entrepreneur, Vittorio has expanded his business model by employing other construction materials. He deals in lawn furniture as well as metals through its Baron Metal subsidiary. The company saw a sharp increase in its stock when it went public in 1994. Vic’s financial holdings increased by a massive amount of $600 million. The company did so well that hundreds of its initial employees instantly became millionaires. By 1997, revenue had grown to more than $2 billion annually. The company went through a rough patch when earning started to decline. Investors complained and several meetings took place between the shareholders and Vic. Despite the complaints, De Zen was able to earn 80% of the votes and remained the CEO. Within the next year, the stock devalued from $30 to less than $7. By 2003, De Zen was forced to resign and Douglas Dunsmuir became CEO. Under new management, the stock regained almost 70% of its value in the next few months. Although the company recovered from this rough patch, this was only the beginning for Royal Group Technologies as well as Vittorio. In 2004, the Ontario Securities Commission announced that they would

investigate the company for suspicious land dealings in the Caribbean. By the end of the same year, auditing investigators found evidence that the executives of the company had bought a 75-hectare land in Woodbridge and sold it to their own company again for an inflated price. This proved too much for the shareholders and they fired De Zen as the CEO and chairman as well. By March of 2005, Vittorio let go of all of his vital company shares in exchange for common stock. This instantly formed an important position for any interested party to take over. The company put itself on the market and was eventually acquired by Georgia Gulf Corporation for $1.6 billion. Much like Royal Group Technologies, GGC is also a raw construction material manufacturer. Vic was no longer in control of the company he created. Moreover, he was still being prosecuted for the alleged crimes he committed during his time as CEO of Royal Group technologies. After a five-month trial, in 2010, Vittorio was acquitted of his charges as the judge found overwhelming evidence supporting the defense.

References https://www.thestar.com/business/2008/06/20/vic_de_zen.html https://en.wikipedia.org/wiki/Royal_Group_Technologies https://www.theglobeandmail.com/report-on-business/the-comeback-of-vic-de-zen/article4506732/ https://www.canadianbusiness.com/lists-and-rankings/richest-people/rich-100-vic-de-zen/...