CVC's Delachaux foregoes IPO, acquired by CDPQ

Francesca Veronesi
15 June 2018

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CVC Capital Partners has sold its stake in Delachaux, a France-based industrial and manufacturing business, to Canadian pension fund Caisse de Dépôt et Placement du Québec (CDPQ) and to the Delachaux family, despite an IPO price range announcement last week.

The valuation of Delachaux at around €1.5bn reported by several press reports is roughly correct, a source familiar with the situation told Unquote.

The Delachaux family will remain the majority shareholder in the business. Unquote understands that CDPQ has not bought the totality of CVC's 49.9% stake.

Delachaux was expected to announce on 14 June the final share price for its IPO on Euronext Paris, with share trading due to begin on 19 June.

CVC previously sold US-based adviser AlixPartners to an investor group, which included included CDPQ, in a deal valued at over $2.5bn.

CDPQ and CVC declined to comment.

Previous funding
CVC acquired a stake in the group in 2011 via CVC European Equity Partners V, with a view to de-list the company at a later date – the offer valued the business at €1.08bn. The take-private was completed in September 2011.

According to Unquote sister publication Debtwire, Deutsche Bank, HSBC, Crédit Agricole CIB, Natixis and Societe Generale arranged a €545m debt package to support the 2011 deal.

Company
Delachaux is an industrial group headquartered in Colombes. With roots dating back to 1902, it specialises in the design, manufacturing and marketing of industrial products used primarily in the handling, railroad, aeronautics and automotive sectors.

Delachaux's revenues reached €841m in 2017, with a large recurring portion of this coming from maintenance activities. Adjusted EBIT and adjusted EBIT margin reached €112m and 13.3% respectively in 2017.