Pragma Capital exits Nasse-Demeco to Siparex

Alice Tchernookova
20 June 2016

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Pragma Capital, the majority shareholder in Nasse-Demeco since 2007, has exited the group to a consortium of new investors led by French private equity house Siparex.

Siparex is now the new majority shareholder, with minority stakes secured by Crédit Agricole Regions Investissement, Socadif, Unexo, Idinvest Partners and Societe Generale Capital Partenaires. Altogether, the investors will provide new funding to the group worth €30m.

The transaction also marks the exit of Edmond de Rothschild Investment Partners (EdRip), which had been invested in the group since 2007.

Patrick Bornhauser, CEO of the group since 1986, reinvested as part of the transaction. Members of the executive team, including general manager Virginie Brunel, also secured shares in the business.

Nasse-Demeco has followed a steady acquisitive growth strategy since its foundation in 1965, having bought around 60 businesses in total. The company's turnover has grown from €47m at the time of Pragma and EdRip's investment in 2007 to €82m last year, having acquired 11 companies.

With Siparex's backing, the group will continue to expand with external acquisitions in France and abroad, planning to make two or three a year, the GP said in a statement. It will develop its B2B and B2C operations equally. Ultimately, the aim would be to achieve a €120m turnover within five years.

LCL, Societe Generale, Crédit Agricole Centre Loire, BNP Paribas, Banque Palatine and Caisse d'Epargne jointly provided senior debt for the deal, completed by mezzanine debt provided by Idinvest Partners.

Previous funding
In September 2007, following a Grant Thornton-run auction that attracted the likes of Atria Capital Partenaires, Perfectis Private Equity and industrial bidders, Pragma won the mandate to back the buyout of the removal company. Pragma took a majority interest, while EdRip reinvested and retained around 18% of the equity.

LCL arranged a €24m senior debt package comprising an A- and B-tranche, while Axa Mezzanine provided €10m of mezzanine credit. A capex facility was also arranged.

EdRip had earlier invested €2.5m in Nasse-Demeco via its funds Mercure Discovery II and Croissance Discovery in September 2003, giving the private equity firm a minority interest.

Company
Founded in 1965, Nasse-Demeco provides a range of removal services for individuals and corporate clients. It employs around 3,000 staff, with a network of 100,000 removal men and 1,800 removal vehicles covering the country. It operates 275 branches.

The group's B2B operations represent 50% of its activity.

People
Siparex – Pierre Bordeaux-Montrieux (executive committee member); Augustin de Jerphanion (director); Alban Selmer (senior associate).
Socadif – Carole Salabi (investment director).
Unexo – Eric Poisson (investment associate).
Carvest – Nicolas Ravachol (investment director).
Societe Generale Capital Partenaires – Hervé Moreau (investment director); Arthur Millery (private equity analyst).
Idinvest – Eric Gallerne (partner); Maxime de Roquette-Buisson (investment director).
Pragma Capital – Denis Catz (partner).
Edmond de Rothschild Investment Partners – Pierre-Michel Passy (founding partner); Antoine Le Bourgeois (partner).

Advisers
Vendor – UBS, Fabrice Scheer, Nicolas Henry, Anne-Sophie Serre (M&A); McDermott, Henri Pieyre de Mandiargues, Nicolas de Courtivron (legal); Eight Advisory, Christian Berling, Numa Thiellement (financial due diligence).
Management – Opléo, Antoine Degorce (legal).
Equity – Advance Capital, Arnaud Vergnole, Thibault Fleury (financial due diligence); Delsol, Amaury Nardonne, Cécile Fabre (legal, tax); Joseph Aguerra, Laure Mazon (environmental due diligence).