Pragma Capital buys GSRI in MBO

Francesca Veronesi
08 February 2018

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Pragma Capital has acquired over 70% of French infrastructure inspection engineering group GSRI Group, alongside the management team.

Pragma Capital's Arnaud Leclercq confirmed that Pragma III fund was used for the transaction. The fund focuses on investments in companies with an enterprise value in the €15-75m range. It invests €7-20m in majority stakes exclusively.

The management team has retained a minority stake in the business of under 30%.

Senior debt for the transaction was provided by BNP Paribas, Caisse d'Epargne and Crédit du Nord.

A source close to the deal disclosed that the acquisition was done on the basis of a 55/45 equity-to-debt ratio.

Previous backer BPI France fully exited the investment, selling its 30% stake, Unquote understands. However, the state-backed investor should remain a financial partner, particularly for research and development financing.

The transaction will help GSRI to accelerate its growth in France and internationally through acquisitions. The business also intends to expand by strengthening its technological assets.

Company
The GSRI group was created in 2007, when Geoscan was acquired by Structures et Réhabilitation, an engineering company founded in 1997. GSRI provides inspection, diagnostics and consulting services to optimise the management of infrastructure throughout its life cycle. Structures et Réhabilitation is based in Bagnolet and Geoscan in Igny.

Employing 100 engineers and technicians, GSRI operates in the field of underground infrastructure, as well as bridges, buildings and other major projects. The company posted a turnover of €14m in 2017.

People
GSRI Group – Idriss Benslimane (chair).
Pragma Capital – Arnaud Leclercq (partner).
BPI France – Jacques Solleau (director); Alexis Mahieu, Constance Pauliac (investment directors).

Advisers
Equity – Reed Smith, Marc Fredj, Fernand Arsanios, William Chaboureau, Guillemine Bern (legal); Neovian, Patrick Richer, Nanae Sendra, Alois Tronel (commercial due diligence); KPMG, Antoine Bernabeu, Wilhelm Staal, Pol Hubert (financial due diligence).
Vendor – Capitalmind, Michel Degryck, Jonathan Bursztyn, Julie Prudent (commercial due diligence); Atlas, Emmanuelle Fauvin, Dominique Diey (legal).