Ardian divests Diam in management buy-back

Francesca Veronesi
08 June 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

Ardian has entered exclusive negotiations to sell its majority stake in Diam Group, a French point-of-sale advertising business, to management and BNP Paribas Développement.

Management will retain a majority stake in the business.

France-based EMZ Partners supplied financing for the transaction. It specialises in private bond financing as part of management-sponsored transactions, in which family or management are majority shareholders.

Ardian invested via its Ardian Expansion Fund IV, which provides investment tickets of around €50-60m in companies valued at up to €225m.

Under Ardian's two-year ownership, three new factories were built and two build-ups completed. The company's turnover went from €200m in 2015 to more than €300m in 2017.

Previous funding
In September 2012, LBO France acquired a majority stake in Diam through an SBO thought to be worth €70m. The deal included €20m in senior debt. The previous owner was HIG, which had acquired the company from US buyout house Heritage Partners. HIG reinvested €10m in the form of a mezzanine tranche in the 2012 deal.

Ardian acquired Diam from LBO France in a secondary buyout transaction in 2016. It became the majority shareholder alongside the management team and BNP Paribas Développement, which also increased their respective stakes as part of the deal.

The 2016 loan package was provided by BNP Paribas, CIC, Societe Generale, Banque Palatine and OFI ZenCap, while Diam also issued a bond at the time to finance the leveraged buyout.

Diam refinanced its debt earlier in 2018. The fresh debt package was structured around a bank debt with A, B and C tranches in addition to a capex line, an acquisition line and a revolving credit facility. The previous lenders were joined by Aviva, Allianz and Banque International à Luxembourg.

Company
Founded in 1968, Diam creates, produces and installs branded point-of-sale displays. The company is present across 25 countries in Europe, America, Asia and North Africa. It posted revenues of €300m in 2017, against €200m in 2015.

The group provides point-of-sale and interior design services to brands and retailers working mainly in the luxury and cosmetic goods sectors. It has partnerships with brands such as Dior, Estée Lauder, Cartier, L'Oréal, Lancôme, Clarins and LVMH.

People
Ardian Expansion France – Arnaud Dufer (head of expansion France).
Diam Group – Michel Vaissaire (CEO, chairman).
EMZ Partners – Thierry Raiff (president).