Bain Capital reduces Maisons du Monde stake

Alice Tchernookova
17 March 2017

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Bain Capital has sold half its shares in listed entity Maisons du Monde, around a year after the company’s €769m IPO.

According to a company release, Maisons du Monde was notified today of the sale by Magnolia Holdco, a holding company owned by funds advised by Bain Capital, of a total of seven million shares of the group, representing approximately 15.5% of the total share capital and voting rights, by way of an accelerated bookbuilding.

Shares were priced at €26.50 apiece, but according to Euronext, are currently floating at €27.00 with a €1.221bn market cap for the group.

After the settlement of the offering, due on 16 March 2017, Magnolia Holdco is set to own 15.8% (down from 31.2% previously) of the group's total share capital and voting rights. As a result of the transaction, the group's free float will also increase from 64.8% to 80.3% of the total share capital.

The transaction should enable Maisons du Monde to generate a capital increase of at least €185m, which could be increased to €200m should all options be exercised. It follows a previous capital increase of €175m generated by Bain in October last year.

Previous funding
In May 2016, Maisons du Monde completed its initial public offering with a €769m market cap. The offering comprised around 19 million shares, representing around €330m and priced at €17 apiece, including €170m sold by Bain Luxco and Compagnie Marco Polo – the selling shareholders.

Bain Capital acquired Maisons du Monde in an SBO valued at around €680m in June 2013, representing 8x the company's EBITDA at the time.

Prior to that, Apax and LBO France acquired a majority stake in the group in a €435m SBO from Equistone in 2008.

Company
Maisons du Monde was founded in 1996 by Xavier Marie and is based in Vertou, near Nantes. The company specialises in home decoration and furniture retail, serving customers worldwide. The group has a network of 288 stores located in France, Italy, Spain, Belgium, Germany, Switzerland and Luxembourg. It also sells into Austria, the Netherlands, Portugal and the UK via an integrated an e-commerce platform.

In 2016, Maisons du Monde opened 25 new shops, recording a 26% growth with €882m in revenues and a €122.8m in EBITDA. Onlines sales account for 19% of the group's revenues, and international sales for 36%.