European Capital provides €26m unitranche in Moria refinancing

Alice Tchernookova
31 May 2017

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Backed by Edmond de Rothschild Capital Partners (EdRCP) since 2011, healthcare group Moria has received a €26m unitranche provided by European Capital.

The new package is replacing the one put in place by EdRCP upon its takeover of the business in 2011, and which consisted of a senior debt package provided by LCL, BNP Paribas, Neuflize OBC and Banque Palatine, completed by a mezzanine component provided by Indigo Mezzanine.

According to French publication Capital Finance, the new €26m unitranche from European Capital will enable Moria to repay €20m to Indigo, and €5m to the pool of senior debt lenders.

European Capital drew capital from its European Capital Private Debt fund; according to the GP, the vehicle mostly focuses on providing financing for sponsor-led acquisitions.

The GP announced European Capital Private Debt's final closing in April 2016 with €473.5m in commitments. At the time, the fund had already deployed an estimated €320m across 14 portfolio companies in France, the UK, Spain and Germany.

The fresh financing will help Moria launch a new range of surgical equipment and to continue its expansion. Between 2011-2017, the group's turnover grew from €32m to €35m.

Previous funding
In 2011, EdRCP acquired 85.27% of listed French medical equipment company Moria, with a view to take it private. Selling shareholders included Siparex, which held a stake in Moria via its SPF III Mid-Market fund, and MMA Participations. The offer gave the company a market cap of around €116m.

In 2013, EdRCP partially sold its stake and the group was split in two, with orthopaedic surgery company Pyxidis (€15m of sales at the time) becoming a separate entity.

Bridgepoint Development Capital became Moria's new majority owner in 2014 as it took over EdRCP and its portfolio.

Company
Established in 1820, Moria manufactures precision instruments for eye surgery. Based in Antony, France, the company has additional offices in the US, Japan and China. It posted revenues of €35m in 2016.

People
European Capital – Etienne Haubold (managing director); Guillaume Claire (investment director).

Advisers
Company – Hoche Société d'Avocats, Jean-Luc Blein, Marie Peyrega (legal); K&L Gates, Mounir Letayf, Adeline Tieu Roboam (legal).
Debt – Eight Advisory, Katia Wagner, Marie-Laurence Perrier (financial due diligence); Willkie Farr & Gallagher, Paul Lombard, Stanislas Curien (legal).