Deal in Focus: Siparex acquires Ligier from 21 Partners

21 Centrale Partners recently sold Abrest-based recreational vehicles manufacturer Ligier to French private equity house Siparex. Upon acquisition in September 2008, the GP's first job was to successfully complete the merger between Ligier and Microcar, reunited under the brand Ligier Group via the Drive Planet holding. 21 Partners owned a 75% stake, while the Ligier family retained a 25% interest, unquote" reported at the time. The combined entreprise value exceeded €100m.

The merger formed one of Europe's largest manufacturers of microcars and quadricycles. At present, Ligier counts 225 staff members spread between two production sites in France and produces on average 10,000 vehicles per year. But although revenues most recently hit the €120m mark, they are still short of the €139m registered pre-crisis.

"That doesn't bother us," says 21 Partners managing partner Francois Barbier. "We've kept up a good profitability the whole time and have achieved an honourable performance regardless."

We have managed to ensure a family transition and the aim when picking the next owner was to find a partner whose profile would be suitable for them. As soon as we got an adequate valuation for the business, we basically let company executives make their decision" – Francois Barbier, 21 Centrale Partners

At the time of investment in 2008, the GP had to face the challenges brought about by the economic crisis. Barbier recalls 21 Centrale's first work consisted of "rationalising" everything – from production sites to technology and distribution channels.

"Historically, the group's three main markets were France, Spain and Italy. Among these, Spain and Italy were the ones that were most hit by the crisis. There, we made geographical adjustments, focusing on the countries' most active and urban parts," he says. The GP also opened up to new regions, developing new channels in the Nordic countries and Germany.

On the innovation side, new product ranges were developed, including utility and electric vehicles, which, according to Barbier, are the company's most promising product. "Electric vehicles have become increasingly popular among young drivers and for short journeys in city centres; local authorities and services are also more sensitive to environmental issues," he says. Vehicles intended for professional use reportedly drive 20% of the group's sales at present. "Big cities are in need of smaller and less polluting vehicles, and this represents a major growth factor for Ligier," says Barbier.

Finally, with 21 Partners' backing, Ligier launched a joint venture with tech company Robosoft called EasyMile, marketing the cyber car EZ10 – an electric driverless shuttle already in use across Europe, the US and Singapore.

Driving change
One of 21 Partners' proudest achievements in this transaction, Barbier insists, is to have enabled the Ligier family to remain invested in the group: "We have managed to ensure a family transition and the aim when picking the next owner was to find a partner whose profile would be suitable for them. As soon as we got an adequate valuation for the business, we basically let company executives make their decision."

The new structure sees investor Siparex take over 21 Partners' majority stake in the group, while management and CEO Francois Ligier, who picked up the torch from his father Philippe when the latter left the group in 2012, retain a 10% interest in the company.

Other minority investors in the latest transaction – thought to value the business at slightly less than €100m – include Edify, Crédit Agricole Régions Investissement, Crédit Agricole Centre-France Développement and BNP Développement.

The deal, for which senior debt was provided by BNP Paribas, Banque Populaire and Shelcher Prince Gestion, is expected to be closed in early September.

Future growth for Ligier should be mainly achieved organically, considering the company mainly faces a single large competitor, US group Polaris, which acquired French microcar maker Aixam Mega (previously supported by Siparex) back in 2013. The new GP therefore intends to focus its efforts on strengthening product ranges, as well as key geographical positioning in Germany and Scandinavia.

People
Siparex – Benoît Metais (executive board member); Romain Boisson De Chazournes (associate director); Mathieu Marc (deputy director). 
Edify – Jean-François Lours (CEO).
Crédit Agricole Régions Investissement – Hans De Breda (CEO); Paul Lambert (investment director). 
Crédit Agricole Centre-France Développement – Xavier Deyra. 
BNP Développement – Ludovic Robert (investment director); Emilie Gondal (investment associate). 
21 Centrale Partners – François Barbier (managing partner); Caroline Giral (principal); Amélie Furno (associate). 

Advisers
Vendor – Veil Jourde, Pierre Deval, Gabriel D'amecourt (legal); KPMG, Vincent Delmas, Duncan Low (financial due diligence); Arthur D Little, Delphine Knab (commercial due diligence); Lincoln International, François Rispoli, Fanny Mercieca, Serge Palleau, Julien Chevrier (M&A).
Equity – 8 Advisory, Xavier Mesguich, Christophe Delas, Aurélien Bettas-Regalin (financial due diligence); Nomos, Héléna Delabarre, Guillaume Leclair, Jean-Claude Bignon (tax, legal); Anne Ciret (environmental due diligence); Indefi, Julien Berger, Matthias Burn (commercial due diligence); De Pardieu Brocas Maffei, Jean-François Pourdieu, Matthieu Candia, Marie-Laure Bruneel, Hugues De Fouchier, Laure Givry, Alexandre Eberhardt Le Prevost (legal).  
Debt – Volt, Alexandre Tron (legal).

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