Equistone to acquire Bruneau

Weinberg acquired Bruneau in 2015 alongside investment companies Halisol Groupe and SGPA.

The GP mandated Rothschild in April this year to lead the sale. According to a report by unquote" sister publication Mergermarket earlier this year, Bruneau was being marketed on the basis of an estimated €41m EBITDA for 2017, up from €37.9m in 2016. Bruneau is targeting a €20m increase in revenues this year to hit the €320m mark, the report added.

The transaction values Bruneau at around €250m, representing a 6x EBITDA multiple, unquote" understands. 

The GP will invest through Equistone Partners Europe V (EPEF V), closed on its hard-cap of €2bn in 2015. Like its predecessors, EPEF V targets European buyouts in the €50-500m region. The fund's most recent investment prior to the current transaction was UK-based holiday home builder Willerby, bought from Caird Capital. Equistone recently sold Bretèche Industrie to IK Investment Partners. 

During Weinberg's holding period, Bruneau's revenues went from €300m to €312m, and its EBITDA from €25m to €37.9m. The business mostly grew its sales in France and Belgium, according to the GP.

The transaction remains subject to regulatory approval and consultation with employee representative bodies. Both parties declined to comment at this stage when contacted by unquote".

Debt
A senior debt package provided by Crédit Agricole CIB and BNP Paribas supported the transaction, while CM-CIC Private Debt provided mezzanine debt. The total leverage represents around 4x EBITDA, unquote" understands.

Previous funding
Weinberg bought the French branch of furniture distributor Bruneau in 2014, alongside Halisol Groupe and SGPA, from holding company Argosyn in a deal thought to be valued at €150m. Several family offices were also reported to have secured a minority stake in the company.

The acquisition was the third investment by Weinberg's WCP 2 fund. The transaction was believed to have featured a €50m debt package, unquote" reported at the time.

Company
Founded in 1955, Bruneau is an online B2B distributor of office furniture and supplies. Based in Villebon-sur-Yvette, France, the company is also active in the Netherlands, Luxembourg and Spain. Around 60% of its sales are made online, and 20% under its own brand. The business also owns the Maxiburo brand.

Buneau generated €312m in revenues in 2016 for a €37.9m EBITDA, and employs 750 people.

People
Weinberg Capital Partners – Philippe Klocanas (partner).
Equistone Partners Europe – Grégoire Chatillon, Grégoire Schlumberger (partners).

Advisers
Equity – Messier Maris & Associés, Erik Maris, Driss Mernissi (corporate finance); Marlborough Partners, Romain Cattet, Charles Devevey (debt advisory); Goodwin, Thomas Maitrejean, Thomas Dupont-Sentilles (legal); Deloitte, Cyril Stivala, Christèle Fraisse, Elia Ferreira (financial due diligence); LEK Consulting, Serge Hovsepian, David Danon-Boileau (commercial due diligence); Taj, Jérôme Gertler, Isabelle de La Gorce (legal); Arsene Taxand, Denis Andres, Yoann Chemama (tax).
Vendor – Rothschild & Cie, Frank Cygler, Nicolas Perianin (corporate finance); Allen & Overy, Marc Castagnède, Romy Richter, Jules Lecoeur (legal); Eight Advisory, Christian Berling, Mathieu Morisot, Adrien de la Bouillerie, Marcu Andria Simonetti, Victoire Sordet (financial due diligence).
Company – Callisto (corporate finance).

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• Weinberg Capital Partners
• Equistone Partners Europe