Equistone chooses continuation fund route for Sicame

Francesca Veronesi
17 June 2022

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Equistone has decided to transfer its portfolio company Sicame, a French electricity distribution products and services provider, to a single-asset continuation fund, three sources familiar with the situation said.

The sponsor opted for the GP-led secondary transaction after considering other ownership alternatives in the past months, the first source noted. The continuation deal is not closed yet, the same source added.

In parallel, the sponsor organised a refinancing via a club deal, as reported by Unquote sister publication Debtwire.

The rationale behind going down the route of a continuation fund, rather than a sale, is that Sicame can yield further returns for Equistone, which has owned a majority stake in the business since 2016, as reported. The continuation fund route opens the option for new minority investors, including the LPs of the newly created fund, to co-invest in the business alongside Equistone. Lazard is advising Equistone on the transaction, as reported.

Equistone became a minority shareholder in Sicame in December 2009. It then proceeded to acquire a majority stake in 1Q16, alongside the founding family, Crédit du Nord, other individual investors and the management team.

Founded in 1955, Sicame designs, manufactures and sells a complete range of core transmission and distribution network accessories, including mechanical and electrical connectors to help build or maintain electrical networks. The group has established a global market presence in 50 countries and has around 3,100 employees. The business generated EUR 400m turnover and EUR 37.6m EBITDA in 2020, according to its website.

Equistone, Lazard, SocGen, CIC, SMBC declined to comment, while Artemid, Bank of Ireland, Credit Agricole, HSBC, ING and SCOR did not respond to requests for comment.