Canadian pension funds invest in Ardian-backed Fives

CDPQ and PSP will each acquire a "significant" minority stake in Fives, which will remain controlled by its management, according to a statement. The company's fifth LBO was expected to value the company at €1.5bn, according to press reports that emerged in December.

Ardian will retain a minority share, alongside management. Five's president Frederic Sanchez will also keep a small stake.

Established in 1965, CDPQ is the second largest pension fund in Canada. As of December 2016, the pension fund had an exposure of around 11.3% ($30.4bn) to private equity, according to unquote" data.

PSP is a large pension investment manager that invests on behalf of Canadian public service workers, the country's military forces and the Royal Canadian Mounted Police. 

Previous funding
In July 2012, Axa Private Equity, which later rebranded as Ardian, bought Fives alongside management in a deal that valued the company at around €850m. Previous owner Charterhouse made a full exit from the company.

Ardian then injected more capital in the company to finance the bolt-on of US-based Mag Americas, which had a turnover of $400m in 2013.

Charterhouse acquired Fives Group (then Fives-Lille) in 2006 from Barclays Private Equity for around €450m.

Barclays acquired the firm in 2004 from Industri Kapital for €330m, in a deal that saw the first exit of a Nordic GP from the French market.

IK originally acquired the company at a price of €107 per share, in a transaction that valued Fives at around €235m. A debt package was structured by Royal Bank of Scotland and Natexis Banques Populaires.

Company
With roots dating back to 1812, Fives is an industrial engineering firm. The company designs and manufactures process equipment, production lines and turnkey plants for sale to the aluminium, steel, glass, automotive, logistics, cement and energy sectors. Fives has a workforce of 8,600 people and operates in 30 countries. The company's turnover stands at €1.8bn. According to press reports, its EBITDA is in the region of €116m.

People
Caisse de depot et placement du Quebec – Stephane Etroy (executive vice-president, head of private equity).
Public Sector Pension Investment Board – Simon Marc (managing director, head of private equity).
Ardian – Dominic Gaillard (CEO).

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• Topics
• Buyouts
• France
• Industrials
• Exits
• France
• Ardian (formerly Axa PE)
• Secondary buyout