EdRip in partial exit from Europ Net

The GP's partial exit enables the group's two managing directors to increase their stake in the company, taking it up from 60% previously to 80%. EdRip sold half its participation, now reduced to 20%.

The deal comes two years after EdRip backed the management buyout of Europ Net, acquiring a minority stake in the company in 2014. The business has nearly tripled its turnover (from €8m to €25m) and hired hundreds more employees since EdRip's investment.

A refinancing was also arranged as part of this transaction, with a senior debt package representing 3x EBITDA and provided by the same banks as for the 2014 deal – LCL, Banques Populaire Rives de Paris and Caisse d'Epargne Ile-de-France.

The refinancing also enabled the company to repay the mezzanine debt provided by 123Ventures via its mezzanine fund Trocadero Capital Partners in 2014.

Europ Net now aims at €35m in revenues for 2017.

Previous funding
EdRip backed the management buyout of French cleaning company Europ Net from Samsic Group in October 2014.

The firm had invested via its €112m small-cap fund Cabestan Capital, which closed above its €100m target in November 2011 and typically provides equity tickets of €1-7m.

Europ Net's management, led by Stéphane Payan and Carlos de Moura, had invested alongside EdRip to hold a majority stake in the business. It took a 59% stake, with the balance going to EdRip.

A senior debt package of around €10m had been arranged for the deal by LCL, Banques Populaire Rives de Paris and Caisse d'Epargne Ile-de-France. Trocadero Capital also provided a €3m mezzanine facility.

Company
Founded in 1981 and headquartered in Nanterre, Europ Net offers cleaning services in the Ile-de-France region. It aims its services at the high-end market, namely large company headquarters, luxury hotels and stores, government and historical buildings, and private schools. Clients include the Assemblée Nationale, Opéra de Paris, Royal Monceau, Plaza Athénée and other high-end venues in Paris.

People
Edmond de Rothschild Investment Partners – Alexandre Foulon (partner); Mayeul Caron (investment director); Pierre Cavalier (analyst).

Advisers
Company – Lamartine Conseil, Vincent Libaud, Perrine Sauzay (legal). 
Debt – Franklin Société d'Avocats, David Blondel, Olivier Borenstejn (legal).

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