Argos Wityu to sell La Compagnie des Desserts to PAI

Credit Mutuel Equity, which held 20% of the shares alongside Argos Wityu, will also exit the company, having supported the Barral family, founders of LCDD, since 2005, according to a press release.

Argos Wityu acquired LCDD in 2016 via Euroknights VI, which closed its sixth fund at a EUR 400m hard-cap in December 2010, according to Unquote Data. Mergermarket reported that in 2016, Argos Wityu's entry valued La Compagnie des Desserts around EUR 50m.

Under this ownership structure, the company almost doubled revenues to EUR 117m and staff to more than 700, according to the press release. LCDD, which serves the food services market, took its business model to the UK, Spain, Portugal and Belgium, established operations in Switzerland and the US and expanded through three strategic acquisitions in the UK, Spain and France. It also entered new food service segments such as leisure, takeaway and dark kitchens and introduced vegan and environmentally responsible products.

The transaction is the sixth investment by PAI Mid-Market Fund, which held a final close on GBP 797m in March 2021. When completed, the deal will follow the acquisitions of French orthopedics surgical equipment company Amplitude Surgical, Basque food producer Angulas Aguinaga, France-based flower and gift digital platform MyFlower, Italian manufacturer of counter frames for doors and windows Scrigno and Spain-based food retailer Uvesco.

The firm will support LCDD through organic growth and acquisitions in new and existing geographies, a spokesperson at the firm told Unquote. The company is currently servicing clients across Europe, mainly in France, Spain and the UK.

PAI aims to build a pan-European leader in premium frozen desserts through gaining further market share, optimising its footprint and accelerating its international expansion, according to a press release. It will draw on its experience in the food and consumer sector to help LCDD continue to adapt to evolving consumer trends, such as low-sugar and plant-based products.

Mergermarket reported a year ago in January 2022 that the company posted a 10%-11% EBITDA margin for EUR 92m revenue in 2019 and was aiming to exceed that benchmark in 2022.

PAI, which manages EUR 26.4bn of funds according to the press release, has completed 33 buyouts in the consumer sector so far and it is currently fundraising for its next flagship vehicle, PAI Partners VIII. The fund was registered with Luxembourg's Registre de Commerce et des Sociétés on 28 September 2021 with a target of EUR 7bn and a hard cap of EUR 8.5bn, according to Unquote Data.

Company
Headquartered in France, LCDD creates, produces, sells and distributes artisanal ice cream and premium frozen pastries to more than 23,000 food service clients across Europe, mainly in France, Spain and the UK. The company operates seven manufacturing facilities and six logistic platforms.

People
LCDD group − Philippe Bonny (CEO), Sylvain Bertrand (general manager).
PAI Partners − Stefano Drago (founding partner at PAI MMF).
Argos Wityu − Gilles Lorang (managing partner).

Advisers
Buyer − 8Advisory (corporate finance & tax); Strategy& (commercial & operations); Willkie Farr & Gallagher LLP (legal); ERM (ESG); Spayne Lindsay (M&A).

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• Topics
• Exits
• Buyouts
• Consumer
• France
• PAI Partners
• Argos Wityu
• France