PE-backed Rafaut bolts on AEDS

Francesca Veronesi
11 January 2019

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Ace Management and Étoile ID-backed Rafaut, a France-based aerospace equipment manufacturer, has acquired Aerospace Distribution Services (AEDS), a mechanical elements producer for the aeronautic industry.

As a result of the merger, Rafaut has doubled its sales, now posting a turnover of €100m. According to French publication Capital Finance, the businesses will post a €15-20m EBITDA after the merger.

AEDS's previous majority owners, president Maurice Laffly and CEO Jean-Christophe Bertolo, have sold their stakes, although Bertolo has invested in Condor, the holding company of Rafaut.

Previous minority owners BNP Paribas Développement and Ace also invested in the business created by the merger (Ace owned stakes in both Rafaut and AEDS before they merged). However, previous AEDS minority backer BPI France has exited its investment in the business.

This transaction was partly financed by a senior debt facility amounting to 3.3x AEDS's EBITDA, as well as a mezzanine tranche of nearly 1.3x, according to Capital Finance.

In June last year, HLD Europe – a holding company controlled by entrepreneurs Jean-Philippe Hecketsweiler, Jean-Bernard Lafonta and Philippe Donnet – acquired an undisclosed majority stake in Rafaut. French GP Étoile ID, a subsidiary of the Crédit du Nord bank, acquired minority stakes in the business. Ace, which has backed Rafaut since 2015 via its Aerofund III vehicle, also reinvested to retain a minority stake.

Tikehau Capital acquired Ace in October last year.

Previous funding
BNP Paribas, BPI France and Ace became shareholders in AEDS in 2014 to help finance its acquisition of Etablissements Belzane.

Company
Founded in 2004, AEDS manufactures, distributes and assembles mechanical sub-assemblies for the aviation industry (civil and defense). It provides mechanical sub-assemblies for the fighter aircraft Rafale, jet fighter Mirage 2000 and Airbus planes.

The business is based in Witry-Lès-Reims.

People
Aerospace Distribution Services – Jean-Christophe Bertolo (CEO).
HLD Associés – Jean-Bernard Lafonta (co-founder, partner); Jean-Hubert Vial (partner).
Étoile ID – Florence Guilas (CEO).
Ace Management – Thierry Letailleur (managing partner); Delphine Dinard (investment director).