Bain-backed Maisons du Monde in €769m IPO

Alice Tchernookova
27 May 2016

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French homeware brand Maisons du Monde, backed by Bain Capital since 2013, has completed an initial public offering with a €769m market cap.

The share price was set at €17 per share, which will result in Maisons du Monde debuting on Euronext Paris with a market cap of €769m. This is towards the lower end of the initial pricing range of €16.50-22.25 set in mid-May.

The offering comprised 19,299,715 shares placed internationally, representing €328.1m (99.4%) of the total shares offered, and 112,049 shares to the French public, representing €1.9m (0.6%) of the placement.

Maisons du Monde raised approximately €160m by way of issuance of new shares and approximately €170m by existing shares sold by current stakeholders Bain Luxco and Compagnie Marco Polo, which may be increased to €219.5m if the overallotment is exercised in full.

The overallotment option has been fixed at 15% (2,911,764 shares) and is exercisable from 26 May until 25 June. If exercised in full, it will bring the size of the offering up to €379.5m.

Following the sale, Maisons du Monde's free float will amount to 42.9% of its share capital, or to 49.3% with the full overallotment. Proceeds from the transaction will be used to pay back debt and increase the company's financial flexibility, enabling it to implement its development and growth strategy.

Shares started trading on Euronext Paris on 27 May in the form of when-issued shares; settlement and delivery of the offer is expected to occur on 31 May. Goldman Sachs acted on behalf of the underwriters for the transaction.

Previous funding
Bain Capital acquired French home decoration and furniture group Maisons du Monde in an SBO valued at around €680m in June 2013, representing 8x the company's EBITDA at the time. Bain beat Axa Private Equity and PAI Partners in the bidding and took an 80% stake in the deal.

Prior to that, Apax and LBO France had acquired a majority stake in the group in an SBO from Barclays Private Equity in 2008 for €435m.

Company
Maisons du Monde was founded in 1996 by Xavier Marie and is based in Vertou, near Nantes. The company specialises in home decoration and furniture retail and serves customers worldwide.

The group has expanded across Europe since 2003. It operated 262 stores as of December 2015, located in France, Italy, Spain, Belgium, Germany, Switzerland and Luxembourg. It has integrated an e-commerce platform also selling in Austria, the Netherlands, Portugal and the UK.

Maisons du Monde most recently generated €94m of EBITDA from a €699m turnover.