MBO Partenaires scores 3x on Roland Monterrat sell-off

According to MBO Partenaires, the sale generated a return upwards of 3x on its initial investment in Roland Monterrat in September 2013.

The GP divested its 54% stake in the manufacturer, followed by agribusiness investment specialist Unigrains, which sold its 18% interest. Meanwhile, the company's namesake and founder Roland Monterrat and CEO Jean-François Schott wholly offloaded their respective 18% and 10% shareholding.

Roland Monterrat's new owner, Panzani, has been a subsidiary of Spanish rice- and pasta-focused parent Ebro Foods since 2005, when it was sold by French firm PAI Partners. The current buyer had contemplated an acquisition of Roland Monterrat in 2011 but decided to pull back due to the lack of synergies between both companies at the time, says MBO Partenaires partner Edouard Malandrin.

According to Malandrin, Panzani approached the business again in March 2015 as it considered a series of bolt-ons to grow within the French fresh deli space. An agreement was reached the second time around as the owners felt synergies existed between Roland Monterrat's industrial strength and Panzani's track record in R&D and marketing.

The exit is the third to be carried out via MBO Partenaires' third fund. Launched in August 2010, the vehicle closed on €180m later on in the year and has been used for 18 acquisitions to date – approximately 75% of its capital has been deployed so far. Recent investments via the fund include the buyout of French furniture seller Logidesign in March 2015 and a funding round for soft toy retailer Noukie's in April 2015.

Previous funding
MBO Partenaires became a shareholder in Roland Monterrat in September 2013, when it invested via its third fund, picking up a 54% stake. Although enterprise value was not disclosed at the time, the vehicle typically seeks companies valued in the €5-75m space.

According to Malandrin, the MBO was intended to facilitate a managerial transition for the business as founder Roland Monterrat sought to retire after sitting at its helm for more than 30 years. He kept an 18% interest in the company, whereas entering CEO Jean-François Schott secured 10%. Meanwhile, investment firm Unigrains, which held a stake above the 20% mark prior to the deal, retained an 18% shareholding.

Crédit Agricole, Caisse d'Epargne and Arkéa supported the takeover with a combined €15m in debt that CIC arranged. More than half that figure was the result of Roland Monterrat refinancing its existing debt facilities, with the remaining amount coming via a senior debt package.

Company
Founded in 1984, Roland Monterrat is a producer of pâté en croute, snacks and ready-cooked meals. The business is headquartered in Feillens and currently employs a workforce of 350 people. It recently posted €60m in revenues.

People
MBO Partenaires's work on the deal was led by Edouard Malandrin and Médéric Gaillard, respectively a partner and investment manager at the GP's Lyon office.

Advisers
Vendor – Axten Avocats Associés (Legal).
Acquirer – PwC (Financial due diligence, tax, legal).

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