Industri Kapital (“IK”) today announces the sale of its controlling stake in Groupe Fives-Lille (“GFL”) to Barclays Private Equity France (“BPEF”) and GFL’s management.
GFL is a leading international industrial engineering group, which designs and produces equipment, primarily for the aluminium, automotive, steel and cement industries. In 2003, the group had sales in excess of € 700 million.
GFL was acquired by IK through a public-to-private on the Paris Stock Exchange in February 2001. The successful shift from manufacturing to pure play engineering combined with strategic focusing on core activities has allowed GFL to more than double its operating profit under IK’s ownership. This strong performance supported the company’s recapitalisation in 2003.
Jean-Baptiste Wautier, Deputy Director of Industri Kapital comments: “GFL exemplifies IK’s ability to execute complex transactions and create value by providing strong support to management. IK’s experience from previous investments in the engineering industry allowed us to better identify potential and unlock profit”.
“We are delighted that the management team consistently exceeded the plan and our expectations. GFL is IK’s first realisation in the French market and demonstrates IK’s ability to generate superior returns on a pan-European basis”, Christopher Masek, Director of Industri Kapital concludes.
Frédéric Sanchez, Chairman of Fives-Lille Executive Board comments: “With Industri Kapital’s support and active involvement, Groupe Fives-Lille has been significantly transformed over the last three years. Its organisation has been simplified and restructured around four key areas of business, its competitive positioning has been significantly reinforced, its international development has accelerated and operating profitability has strongly improved. With a sound financial position and well regarded management team, a record order book, and a new shareholder, Barclays Private Equity France, the group is well positioned to implement its organic and acquisition led growth strategy. Groupe Fives-Lille looks to the future with optimism and confidence”.
Guillaume Jacqueau, Managing Director of Barclays Private Equity France, comments: “GFL has a real know-how in its various businesses and attractive growth prospects. Barclays Private Equity France and the GFL management, who were closely involved in the transaction, share a common goal: to continue the development of the group, through internal or external growth”.
Gonzague de Blignières, Chairman of Barclays Private Equity France, adds: “As the 72th transaction by Barclays Private Equity in France and the 2nd so far this year, the LBO of GFL fits our strategy perfectly. By combining internal and external growth within our portfolio companies, we will be able to finance both!”
Financing was provided by:
- The Royal Bank of Scotland: Global Mandated Lead Arranger (François Guichot-Perere, Claire Frelaut, Matthieu Flauraud and Romain Merceret)
- Société Générale: Mandated Lead Arranger (Patrick Sandray, Philippe Bassouls and Céline Moura)
- Euromezzanine: Mandated Lead Arranger (Thierry Raiff and François Carré)
- Freshfields Bruckhaus Deringer: Banks’ legal advisors (Michel Quéré, Bertrand Pellet and Erwann Hericotte)
IK was advised by:
- M&A advisors: Rothschild et Cie (Laurent Baril et Berthold von Stauffenberg)
- Legal and tax advisors: White & Case (Vincent Morin and Norbert Majerholc)
- Vendor’s due diligence accountants: Ernst & Young (Daniel Benquis)
- Vendor’s due diligence Structure: Cabinet JEANTET (Dominique Godet)
Barclays Private Equity France was advised by:
- Audit: PWC (Olivier Jues)
- Strategic Audit: LEK (Serge Hovsépian)
- Lawyers: SJ Berwin (Maxence Bloch)
Fives-Lille was advised by:
- KPMG Corporate Finance (Dominique Lecendreux, Stephane Argyropoulos and Laurent Gueroult)
- Mayer, Brown, Rowe & Maw (Alexis Dargent and Xavier Jaspar)
About INDUSTRI KAPITAL
Industri Kapital is a leading European private equity firm with Nordic roots, managing more than 3.5 billion euro in fund commitments from Nordic, European and international institutional investors. Since 1989, Industri Kapital has acquired 47 European companies. The current portfolio encompasses 25 companies with a total turnover exceeding 10 billion euro.
IK invests mainly in mid-sized companies with strong cash flow and profit improvement potential, operating in mature industries with fundamental underlying growth. Over the years, IK has developed significant experience within a number if industry sectors, primarily the manufacturing and service indutries.
In France, IK's investments include Laho Equipement (2000), the number two construction equipment rental group in France, Groupe Fives-Lille (2001), a leading international engineering group, Labeyrie (2002), the European leader of smoked salmon and foie gras and Ceva Sante Animale (2003), a French company providing animal health products and veterinary pharmaceuticals.
About BARCLAYS PRIVATE EQUITY
Barclays Private Equity is a leading European private equity firm specialising in MBOs. With more than 300 deals in Europe and over 70 in France, the team has 10 experts dedicated to operations in French-speaking countries. In France, Barclays Private Equity has gained a strong experience in the farm-produce industry (Saveur, Bénédicta),catering (Courtepaille, La Croissanterie), health (Gibaud), consumer products (Eau Ecarlate, Interflora, SP Métal), building trade (Spie Batignolles, MI SA - Maisons Phénix), and industry services (Prezioso).
Press contacts :
INDUSTRI KAPITAL BARCLAYS PRIVATE EQUITY FRANCE
Christopher Masek : +44 207 778 756 87 40 Stéphanie Tabouis/Valérie Dudoit: +33 1 44 43 78 99
Anne Nguyen : +33 1 53 67 12 80
Céline Morcrette : +33 1 49 88 39 23