Fondations buys Buffet Crampon from Argos Soditic

Fondations invested from its maiden fund, which closed in 2008 at around €300m. It usually invests €20-50m of equity per transaction.

A banking club comprising BNP Paribas, HSBC, LCL and Banque Palatine arranged a 1.5x EBITDA debt package to finance the acquisition.

Fondations was approached at the end of 2011 and given the opportunity to take part in an auction process, run by DC Advisory Partners and Bucéphale Finance. It was notably attracted by the quality of the brands within Buffet's portfolio, as well as its commercial positioning – the group owns and directly operates distribution subsidiaries in Japan, Germany and the US to accompany its export efforts.

The buyer stated it will largely pursue the growth strategy initiated by Buffet Crampon and its previous owner. This includes broadening the commercial strategy towards new geographies, as Fondations Capital believes there is a growing appetite for performing classical music in emerging countries. Buffet Crampon will also look to pursue its operational performance improvements, and will keep considering acquisition opportunities.

Debt
According to Fondations, the modest 1.5x EBITDA leverage component will allow the management team to focus on aggressive growth strategies, without being restricted by an excessive debt burden.

Previous funding
Argos Soditic backed the €40m spin-off of Buffet Crampon from The Music Group in 2005. The private equity house acquired a 90% shareholding in the firm via its Euroknights IV fund. Senior debt facilities amounting to €24m were underwritten by BNP Paribas to support the financing of the deal. The package consisted of A and B-tranches denominated in Japanese yen and US dollars, alongside €5m revolving credit facilities.

Under Argos Soditic ownership, the group carried out several acquisitions: Besson in 2006, Antoine Courtois in 2007, the Leblanc clarinet plant in 2008 and Schreiber in 2010. Turnover rose from €44m to €67m, while headcount doubled from 280 to 560 people.

Company
Established in 1825, Buffet Crampon is a musical instruments manufacturer, notably specialising in clarinets. Export sales account for 93% of the group's revenues – Buffet Crampon operates subsidiaries in the US, Japan, Germany and China.

People
Xavier Marin, Philippe Renauld and Charles-Henri Chaliac led the deal for Fondations Capital. Argos Soditic was represented by Louis Godron and Jérémie Falzone.

Advisers
Equity – Orrick (Legal); PricewaterhouseCoopers (Financial, social & environmental due diligence, tax).
Vendor – DC Advisory Partners (Corporate finance); Bucéphale Finance (Corporate finance).

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