MBO Partenaires exits Dron Location

According to a source close to the deal, the transaction resulted from a common agreement between the owning family and the GP. While there were discussions about getting a new financial backer in the group, this possibility was rapidly side-lined as the owners decided they could stand by themselves without external financial support, the source added.

The full exit sees the fifth generation of the founding Dron family enter the company's share capital. The family's previous generations, which already held a stake in the group, also reinvested on this occasion.

The sponsorless deal was supported by a new debt package  co-arranged by Crédit du Nord, CIC, and Crédit Agricole Ile-de-France, and represented around 1x EBITDA in addition to existing facilities, according to the same source. The original debt of around €3m put in place at the time of the 2011 buyout has been almost fully repaid.

MBO Partenaires made in excess of 3x money on the exit, the source confirmed.

At the time of MBO Partenaires' investment, Dron generated around €16.5m in turnover and had an EBITDA of €4.9m. These figures have increased to €20m and €5.4m respectively, with around 100 employees compared to 80 in 2011.

In spite of adversarial conditions in its field of activity, Dron was able to generate a 7% annual growth rate over the past year, the same source said. The group focused particularly on targeting clients in niche sectors, improving customer service and diversifying its geographical coverage. At present, the group operates in France and Morocco, but it hopes to extend to other countries in the Maghreb region soon.

Three bolt-ons also took place during the holding period: the 2012 acquisition of French group Saniloc, specialised in the rental of toilet facilities for events; Casablanca-based industrial equipment group Centraloc, bought in 2013; and the purchase of Le Bourget-based group La Palissade in 2015.

Previous funding
In June 2011, MBO Partenaires backed the management buyout of Dron, taking a 30% minority stake in the group, with the balance going to the founding family. The group was at the time targeting €25m in revenues by 2016.

Company 
Formed in around 1970, Dron specialises in the rental of diversified machinery, equipment and tools. Originally servicing the construction and industrial sectors only, the group recently started providing services for the events sector as well.

The group, which is based in Pantin, claimed revenues of €20m in 2016.

People
MBO Partenaires – Edouard Malandrin (associate); Médéric Gaillard (investment director).

Advisers
Buyer – Cussac et Associés, Charles-Henri Cussac (legal).
Vendor – Lamartine Conseil, Stéphane Rodriguez (legal).

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• Topics
• Exits
• Industrials
• France
• Management buyback
• France
• MBO Partenaires