CD&R to back Socotec in €1.8bn deal – report

Francesca Veronesi
25 September 2019

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Private equity firm Clayton Dubilier & Rice (CD&R) has signed an agreement to acquire a 33% stake in France-based Socotec, an industrial equipment inspection service, according to local publication Capital Finance.

The transaction values the company at €1.8bn, according to the French publication. The piece noted that PE firm Five Arrows (20%) and Luxembourg-based investment company BIP Investment Partners (10%) will exit the business, while Belgian investment firm Cobepa remains the majority shareholder.

Socotec is generating a €900m turnover and was marketed based on a €142m EBITDA, the report mentioned.

CD&R, Five Arrows and BIP Investment Partners had not responded to a request for comment at the time of publication.

Unquote sister publication Mergermarket reported last week that the auction for Five Arrows' minority stake in Socotec saw CD&R, TA Associates and Inflexion through to the second round.

The business was acquired by private investment holding Cobepa and Rothschild's private equity arm Five Arrows in 2013. The deal was valued in the €250-500m range, according to Unquote Data.

Founded in 1953 and based in Saint-Quentin-en Yvelines, Socotec is a consultant specialising in the construction and infrastructure sectors. The group generates revenues of €700m and employs 7,800 people, according to its website. Earlier this month, the business announced it had bought US-based Vidaris, a provider of speciality consulting services within the architecture, engineering and construction industries. The business employs 300 professionals across 15 offices.

Socotec also bought Germany-based explosive detection firm Schollenberger Group from German buyout firm Finatem Beteiligungsgesellschaft in Q4 last year. At the time of the transaction, the company employed 400 people at 10 offices in Germany and Austria and was expecting revenues of €40m for 2018.