LBO France gets 2x on Tractel exit to Cinven

The transaction, expected to be finalised by the end of Q4 2015, is awaiting regulatory approval.

With Cinven as its new owner, Tractel intends to strengthen its position within the lifting, handling and working-at-height market segments, and will consider growth via targeted bolt-ons.

The sale process was initiated by LBO France, which mandated Canaccord Genuity and Lazard to set up an auction for Tractel in early June. The GP decided to pull back after receiving a direct offer from Cinven at a similar price to the one it had been aiming for in the aborted auction.

The exit is LBO France's second to make headlines in recent days, after the GP announced it would divest Luxembourg-based transport service Flash Europe alongside Siparex to Eurazeo PME and the company's management.

Previous funding
LBO France's divestment takes place more than eight years after acquiring the business in April 2007. According to unquote" data, this is the fifth buyout for Tractel since inception.

The first takeover took place in August 1990, when Charterhouse joined forces with Initiative & Finance and Suez Groupe to buy Tractel. Charterhouse remained as a shareholder until January 2002, when it offloaded the company to French GPs Chequers Capital and UI Gestion, the latter securing a 63% stake.

A third buyout followed in September 2006, when a consortium of investors led by Pragma Capital bought Tractel in a SBO leveraged at just under 60%. Pragma, investing via its €236m first fund, secured a stake of around 50%, while Chequers reinvested to keep a 20% stake alongside French firm Socadif.

Less than a year after becoming a shareholder, Pragma sold its stake in Tractel to LBO France. The transaction, announced in April 2007, valued Tractel around the €310m mark, according to unquote" data.

Company
Founded in 1941, Tractel provides fall-protection and lifting equipment. Its main products include the Tirak and Minifor hoists, electronic load indicator Dynafor, and a range of anti-fall safety devices.

Headquartered in Saint Hilaire sous Romilly, the business sells its products via a network of 8,000 distributors across 120 countries.

People
Cinven partner Xavier Geismer led the deal on behalf of the GP, while LBO France was represented by partner Thomas Boulman. Denis Pradon is Tractel's CEO.

Advisers
Equity – Rothschild (Corporate finance); Clifford Chance (Legal).
Vendor – Lazard (Corporate finance); Canaccord Genuity (Corporate finance); Mayer Brown (Legal).
Management – Callisto (Corporate finance); Fidal (Legal).

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• Topics
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• LBO France
• Cinven
• unq2015sep