
HLD in exclusive negotiations to acquire TSG
HLD Europe has announced it is in exclusive negotiations to acquire a majority stake in France-based petrol station and fuelling equipment company TSG.
According to a statement, HLD plans to support TSG's growth in the multi-energy segment, as well as in car washing services.
TSG is being marketed based on EBITDA of almost €60m and is valued at around €500m, according to a report from Capital Finance. The report added that ICG will provide €280m in unitranche financing to support the buyout.
Unquote sister publication Mergermarket reported in January 2020 that TSG had mandated Natixis Partners to manage the sale process. The same report said that the company has experienced significant growth in recent years, having generated EBITDA of €5m in 2015. Triton and Platinum Equity were suggested as potential bidders at the time of the report and the company was expected to be valued at an 8-10x EBITDA multiple.
HLD generally makes long-term investments in companies based in France, investing from its balance sheet. The investment in TSG is the GP's third deal this year. In January 2020, HLD backed Ardian's acquisition of a majority stake in Santé Cie Group.
Previous funding
Motion Equity Partners (then known as Electra Partners Europe) backed the SBO of Tokheim from Ardian (then Axa Private Equity) in December 2005. Motion and BPI France injected the company with €80m in equity in June 2012 as part of a refinancing. Motion subsequently sold two of Tokheim's business units to US-based Dover Corporation in a deal that closed in January 2016. TSG's management then backed the €60m buyout of the remaining entity from Motion for around €60m, according to Mergermarket.
Company
TSG provides services and equipment for petrol stations and fuel retail, focusing on areas including fuel monitoring, car washing products, electric vehicle charging and petrol station forecourt maintenance. It also offers services in the area of energy transition, focusing on electricity, natural gas, hydrogen and biofuels.
Founded in 1980, TSG is based in Plessis-Robinson and is active in 30 countries. The company was established in its current form when Tokheim Services Group sold its dispensers and electronics businesses to Dover in 2016, leaving TSG as the remaining core business. The company reports revenues of €650m and employs 4,000 people.
People
HLD Europe – Jean-Bernard Lafonta (associate, co-founder); Cédric Chateau (associate, investment committee president).
TSG – Badouin de la Tour (president); Jean-Marc Bianchi (CEO).
Advisers
Equity – Messier Maris & Associés (corporate finance); Canaccord (corporate finance); Arsene (legal); Weil Gotshal & Manges (legal); KPMG (financial due diligence); LEK Consulting (commercial due diligence).
Company – Natixis Partners (corporate finance); Goodwin (legal).
Debt – Paul Hastings (legal).
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