Naxicap takes over Ecotel Chomette Favor

Alice Tchernookova
20 December 2016

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Naxicap Partners has taken over from Weinberg Capital Partners as majority shareholder in Ecotel Chomette Favor (ECF), which is valued at 10x EBITDA in the transaction.

The transaction marks ECF's third LBO, after Chequers Capital and Weinberg Capital Partners successively became majority shareholders in 2006 and 2011 respectively.

Initiative & Finance, Salvepar and Five Arrows, which had also supported the group since 2011, are exiting the group in the current transaction.

Several sources report a competitive exit process with interested parties including LBO France, Abénex and Gimv, among others.

During Weinberg Capital's holding period, between 2011-2016, ECF's sales increased from €130m to €220m. The bolt-on acquisition of Australian group Reward Distribution Group, a producer of hospitality and hygiene products, helped it grow significantly as the target group reported €80m of revenues at the time. The acquisition was completed thanks to an expansion round led by Weinberg in 2014.

Debt
The transaction is supported by the transferrable debt package put in place during a refinancing transaction completed by the GP in 2015, and which included senior debt provided by LCL and CM-CIC Private Debt, and mezzanine debt arranged by CM-CIC Private Debt and Capzanine.

Previous funding
In 2011, Weinberg Capital bought ECF from Chequers through a buyout valuing the company within the €100-150m range. LCL had underwritten a senior debt package leveraging the deal at around 50%. Capzanine co-arranged a mezzanine financing together with Céréa Mezzanine and Unigrains to support the transaction. Three years later, Weinberg Capital along with Credit Industrial reinvested in the group through an expansion round used to acquire Australia-based Reward Distribution for an estimated $19.35m.

Chequers had previously acquired a majority stake in ECF in 2006, investing through the Equity Finance SCR vehicle and holding company EF Logistique. Capzanine was also part of the transaction.

Company
Founded in 1880, ECF distributes small equipment and non-food consumables to catering and hotel professionals in France, including tableware, small kitchen equipment, hygiene and maintenance products. Based in Grigny, France, the group currently reports a €220m turnover.

People
Naxicap Partners – Axel Bernia, Frédéric Jouenne.

Advisers
Equity – Finavik, Vincent Rivaillon (corporate finance); Weil Gotshal & Manges, Jean Beauchataud, Cassandre Porges, Edouard de Lamy (legal).
Vendor – Lazard, Nicolas Constant, François Guichot-Pérère (corporate finance); Allen & Overy, Marc Castagnède, Romy Richter (legal); Eight Advisory, Christian Berling (financial due diligence); LEK Consulting (commercial due diligence). Company – Lamartine Conseil (legal).
Debt – De Pardieu Brocas Maffei, Christophe Gaillard, Sébastien Boullier de Branche (legal); Simmons & Simmons, Colin Millar (legal).