MBO Partenaires backs Reflex CES spinout

Alice Tchernookova
18 July 2017

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MBO Partenaires has backed the management buyout of electronic equipment maker Reflex CES, enabling the company’s spinout from PDLA Group.

MBO Partenaires is taking a minority stake in Reflex CES, with the company's management team, led by founder Sylvain Neveu, retaining a controlling stake.

The GP is currently investing from its fourth buyout vehicle, MBO Partenaires 4, closed on its €250m hard-cap at the end of last year after nine months on the road.

The fund typically invests €5-25m per transaction in French and European SMEs, in buyout and growth-type transactions, and for both minority and majority stakes.

MBO Partenaires also recently exited machinery and tool rental services provider Dron Location after a five-year holding, making in excess of 3x money.

With the GP's backing, Reflex CES will look to increase its market share in the field of high-end field programmable gate array (FGPA), with plans to make significant investments in research and development, which currently represents around 50% of the company's workforce. A further push towards the US, where the business has a San José-based subsidiary, could be considered in the future.

Reflex CES claims to have doubled its revenues in 2016, having hit the €19m mark.

Debt
A senior debt package co-provided by LCL and Caisse d'Epargne Ile-de-France supported the transaction.

Company
Founded in 2000, Reflex CES is a designer and manufacturer of electronic high-speed boards and rugged systems. Based in Evry, the company reported sales of €19m in 2016.

Reflex CES was part of the larger entity PDLA Group until it span out in 2017 with MBO Partenaires' backing.

People
MBO Partenaires – Cécile Nguyen-Cluzel (partner); Raphaël Lahaye (senior business manager).

Advisers
Equity – Valeur Finance, Patrick Tombereau, Axel Tombereau, Jorell Langmar (corporate finance); Lamartine Conseil, Olivier Renault, Bintou Niang, Cindy Nlem, Jean-Pierre Martin (legal); EY, François Poncet, Ruben David (financial due diligence).
Vendor – EY, Alex Larue, Mathieu Gauthier (legal).