Argos Soditic's Valco acquires TCR Capital's D2FC

It is the second bolt-on completed by Valco since Argos Soditic became its majority shareholder in 2014. Last year, the company acquired peer Guichon Valves, backed by BPI France.

The acquisition of D2FC includes the D2FC Energy Valves, D2FC Services and D-KTC Fluid Control subsidiaries. D2FC stated it would benefit from Valco's international presence on the sales side, and from synergies on the production side. The business currently achieves a turnover of around €18m.

The transaction should be completed by the end of June, both parties stated. The new entity resulting from the merger will represent around €70m in revenues and employ 350 people.

Previous funding
TCR Capital took a 60% stake in D2FC in 2013, investing from the €60m France Transmission 1 small-cap fund. The acquisition was supported by €3m in senior debt. Two of the three company founders exited the business on this occasion, selling most of their shares. D2FC generated €21m in turnover at the time.

Argos became a majority shareholder in Valco in February 2014, when it bought the business alongside the management team from HitecVision-backed Norwegian parent Technor. The GP's takeover was supported by a unitranche package provided by IFE Mezzanine, Idinvest and BPI France. At the time, Argos stated it would back Valco's expansion in existing and new markets, with plans for strategic acquisitions across Europe.

Company
Created in 2008, D2FC designs, manufactures and sells hydro-valves for the water, and oil & gas industries worldwide. Based in Thiétreville, France, D2FC also has offices in Brazil and Norway. The company currently generates around €18m in revenues.

Created in 1949, Valco focuses on cryogenic valves for the liquefied natural gas industry. Headquartered in Ruffec, the company has Asian, Middle Eastern and European clients. The group announced a turnover of €45m in 2014 and has 240 employees.

People
Argos Soditic – Gilles Mougenot (partner); Raphaël Bazin (investment director); Samuel Touboul (project manager).
TCR Capital – Christian Dorléac (CEO).

Advisers
Acquirer – Orrick Rambaud Martel, Guillaume Kessler, Stanislas Marmion (legal). 

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