IK buys majority stake in Eres

Francesca Veronesi
21 February 2019

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IK Investment Partners has entered exclusive talks to acquire a majority stake in France-based Eres Group, an employee savings and pension plans specialist, alongside the group's management team and employees.

The GP is investing via its IK VIII vehicle, closed on €1.85bn in 2016.

According to French publication Capital Finance, the company's valuation amounts to €230-240m, roughly 15x its €15m EBITDA.
A source familiar with the situation confirmed to Unquote that the valuation of €230-240m reported is roughly correct.

Apax Partners, Eurazeo, Naxicap, Five Arrows and TA Associates were circling the asset in the first round, ahead of indicative bids towards the end of January, Unquote sister publication Debtwire previously reported. At the time, debt funds were pitching unitranche package pitches in the 6x-6.5x range, the publication reported.

Bidders were also attracted by Eres' promising growth prospects, as the upcoming French PACTE law comprises several measures to foster the development of employee savings schemes in the country, a source close to the situation told Unquote sister publication Mergermarket. The law is expected to be enacted in H1 this year.

Previous funding
Parquest Capital acquired a minority stake in Group Eres in 2016 via Parquest Capital I, closed in 2014 on €300m. The GP bought a 15% stake in the business, according to Mergermarket.

The group's founding managing partners Jérôme Dedeyan, Nicolas Vachon, Hervé Righenzi de Villers and Olivier de Fontenay retained a controlling stake. At the time, the business had €1.5bn in assets under management, according to a statement.

Company
Founded in 2005 and based in Paris, Eres offers employee savings and pension insurance plans. It specialises in the advisory and structuring, asset management and distribution of employee profit sharing plans (PEE, PEI, PERCO and PERCOI), retirement schemes (PERP, PERE) and employee shareholding plans.

Eres distributes its products through a network of distributors (wealth management advisers, insurance brokers, accountants) as well as working directly with mid-sized companies and large groups.

The business has around €2.3bn in assets under management in profit sharing and retirement schemes, according to its website.

People
IK Investment Partners - Rémi Buttiaux (partner); Dan Soudry (managing partner); Thomas Grob (partner); Vincent Elriz (director); Guillaume Veber (associate).
Eres - Jérôme Dedeyan, Olivier de Fontenay, Nicolas Vachon, Hervé Righenzi de Villers (founders).
Parquest Capital - Pierre Decré (partner); Thomas Babinet (managing partner); Guillaume Brian (investment director).

Advisors
Equity - Messier Maris & Associés - Driss Mernissi, Jérémy Langlois, Laura Scolan (M&A); Ayache Salama, Olivier Tordjman, Gwenaëlle de Kerviler (legal); Roland Berger, Christophe Angoulvant, Jean-Michel Cagin (commercial due diligence); Eight Advisory, Lionnel Gerard, François Gallizia (financial due diligence); Ernst & Young, Matthieu Dautriat, Géraldine Roch (tax, legal).
Vendor - Cambon Partners, David Salabi, Guillaume Eymar, Vincent Ruffat (M&A); Volt Associés, Lucas d'Orgeval, François-Joseph Brix (legal); Grant Thornton, Emmanuel Riou (financial due diligence); CMS Francis Lefebvre Avocats, Anne Grousset, Helena Vrignaud (legal, tax).