LBO France to take over HMY Group

According to various sources, the transaction values the group at around €300m.

Sagard had been the majority shareholder in HMY since 2005, together with management.

HMY (formerly known as Hermès Métal Yudigar) was the last portfolio company left from Sagard's first fund, which closed in 2003 on €600m. Other investments from the vehicle included AFE, Faiveley, Depolabo, CEPL, Kiloutou, Medi Partenaires and five others.

The GP put the company up for sale in September 2016, mandating Lazard for the exit process. The decision came after HMY's activity picked up again after several years of financial difficulty. In 2013, the entity had to extend its debt, then made up of a €180m senior debt package and €60m in mezzanine.

In March 2017, Capital Finance reported that Lazard had received three offers for HMY's takeover, coming from LBO France, Oaktree Capital Management and from an unnamed Spanish industrial group.

In recent years, HMY has developed into new market segments, including non-food sectors, including cosmetics, textiles and construction materials. The group also moved into point-of-sale and shelving markets, in particular via its acquisitions of Diam and Averys.

HMY also expanded its Chinese activities, from its strong presence in France and Spain. Around a third of the group's revenues are currently generated abroad, according to a statement issued by the vendor.

Between 2013-2016, HMY's EBITDA grew from €20m to €44m. Meanwhile, its turnover reached €485m in 2016.

LBO France will continue to work alongside company CEO Ignacio Marin Villamayor, supporting the group in its sectorial and geographical development, notably through new acquisitions.

Debt
The deal was supported by a unitranche debt of €180m arranged by ICG, representing around 4x the group's €44m EBITDA.

Previous funding
In December 2004, Sagard backed the MBO of HMY, through its Sagard Fund. HMY was reportedly valued at €340m in the transaction. IU, the private equity wing of Crédit Agricole and CDP Capital, part of Caisse des Dépôts et des Placements du Québec, invested alongside Sagard as minority shareholder, while the management significantly reinvested in the transaction, keeping a stake in excess of 20%.

According to unquote" data, Fonds Partenaires supported HMY's first buyout in 1992, when the company was a regional supplier in the food retail industry. Four years later, Electra backed a second buyout of the company. By the time Bridgepoint acquired the firm in 2000, it had merged with the Spanish display-shelving producer Yudigar. This third buyout integrated the French and Spanish components of the company, aligning its business in both countries.

Sagard's buyout in 2004 aimed to turn HYM into a larger pan-European firm. The deal was underwritten by ING, which arranged the group's senior and mezzanine debt package at the time.

Company
Created in 1960, HMY offers a wide range of furniture including shelving systems, checkouts and bespoke items. Its clients include food retailers and specialised retailers, such as DIY, gardening, fashion and electrical appliance chains.

HMY is active in 80 countries. Its core markets are France and Spain, which together represent around 70% of its €485m turnover. The group recently expanded into China and currently employs 4,000 people worldwide.

People
LBO France – Vincent Briançon (partner); Louis de Lummen, Simon Couturier (investment managers); Karine Callec (general counsel).
Sagard – Frédéric Stolar (founding partner); Saïk Paugam (partner); Camille Claverie (director).

Advisers
Management – Mayer Brown, Alexandre Dejardin (legal).
Equity – Advention, Alban Neveux, Eric Lesavre (commercial due diligence); DLA Piper, Michel Frieh, Maud Manon (legal); EY, Jean-François Nadaud, Guilhem de Montmarin (corporate finance).
Vendor – Lazard, Charles Andrez, Vincent Thillaud (corporate finance); Weil Gotshal & Manges, David Aknin, Gautier Elies (legal); Eight Advisory, Justin Welstead, Florent Garnier (corporate finance); Roland Berger, Olivier de Panafieu, Stéphane Tubiana (corporate finance).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Buyouts
• France
• Industrials
• LBO France
• Sagard Private Equity
• Secondary buyout