LBO France buys Moustache Bikes in €150m deal

Francesca Veronesi
26 February 2019

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LBO has acquired a majority stake in France-based electric bike manufacturer Moustache Bikes from Initiative & Finance (I&F).

The company's founding managers, Emmanuel Antonot and Grégory Sand – who previously owned 45% of the company – are reinvesting significantly in the business. On the other hand, previous owner I&F has sold its 55% stake held since 2015.

LBO France is currently investing via its White Knight IX fund, which closed on €450m in 2017.

The sale saw the business valued at €150m, a person familiar with the situation confirmed to Unquote. Moreover, it generated a 10x money multiple for I&F, Unquote understands.

Previous funding
SME-focused investor I&F acquired Moustache in 2015. The investment was the final deal to be financed via the GP's first fund, Initiative & Finance FCPR I, closed on €141.5m in 2011. Initiative & Finance typically targeted assets priced in the €5-50m range, investing €2-14m per deal.

Company
Founded in 2011 and based in Thaon-les-Vosges, Moustache produces and sells electric bikes costing between €2,200-8,000. The business currently sells around 40% of its bikes abroad.

Moustache currently employs 80 people and generates a €50m turnover, with an annual growth of 30%.

In 2018, the company sold 27,000 bikes via a network of 350 bike dealers, across 18 countries.

The business posted an EBITDA of around €11m in 2018, according to a person close to the situation.

People
LBO France – Vincent Briançon (partner).
Initiative & Finance – Matthieu Douchet (managing partner).
Moustache Bikes – Grégory Sand (co-founder).

Advisers
Equity – EY, Jean François Nadaud, Guilhem de Montmarin (financial due diligence); EY Parthénon, Guy-Noël Chatelin (strategic due diligence); Mayer Brown, Thomas Philippe, Patrick Teboul (legal).
Management – Oloryn, Eric Lessieur (strategic due diligence); SVZ, Franck Sekri (legal).
Vendor – Lazard, Charles Andrez (M&A); PwC, Pascal Ansart (strategic due diligence); PwC Transaction Services, Stéphane Salustro (financial due diligence); PwC Société d'Avocats, Yannick Olivier, Fabien Radisic (legal); Lamartine Conseil, Olivier Renault (legal).