Ardian acquires Syclef majority stake from Latour

Katharine Hidalgo
09 October 2020

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Ardian has acquired a majority stake in refrigeration systems manufacturer Syclef from Latour Capital.

The firm is said to have invested €80-120m in this transaction, according to Capital Finance.

Ardian is currently investing from Ardian Expansion Fund V, which held a final close on €2bn in September 2020. At the time, it was 10% deployed. The typical ticket size from the fund ranges between €40m and €180m, and it intends to make 18-20 investments.

The management team reinvested in the company alongside Ardian.

Since 2015, Syclef has accelerated its buy-and-build strategy with the acquisition of 15 companies, including Estair, a France-based refrigeration and air conditioning equipment manufacturer, in March 2018. Together with Ardian, the group intends to continue this consolidation process in a fragmented market, according to a statement.

Ardian declined to comment.

Previous funding
Edmond de Rothschild Investment Partners (EdRip), via its Winch Capital 2 fund, acquired the company in November 2011, along with the managers and founders of Syclef. Post-acquisition, EdRip held around 27% of the company, while its managers and founders held the remaining stake.

In December 2015, Latour backed the secondary buyout of Syclef from EdRip. Latour invested through its €300m Latour Capital II fund; unconfirmed press reports suggested that it may have invested up to 10% of that fund in the deal. No further terms of the deal were disclosed.

Company
Founded in 2003 near Aix-en-Provence, Syclef specialises in the installation and maintenance of industrial and commercial refrigeration systems. Today, Syclef employs a workforce of nearly 800 people. It operates a decentralised organisational structure with a network of 30 independent companies throughout France. The company is expected to report €200m in revenues for 2020, according to Capital Finance.

People
Ardian – Marie Arnaud Battandier (managing director).
Latour Capital – Philippe Leoni, Maxime Gutton (partners).
Syclef – Hervé Lohéac (chairman).

Advisers
Equity – Latham & Watkins, Olivier du Mottay, Michel Houdayer, Simon Lange, Yiran Bai, Aurélie Buchinet (legal); KPMG, Olivier Boumendil, Benjamin Patte, Nathan Lemaire (financial due diligence); Indéfi, Julien Berger, Maxence Lavolle, Gabriel Rotily, Nicolas Hamann (commercial & environmental due diligence); KPMG, Xavier Houard, Florence Olivier, Albane Eglinger (commercial & environmental due diligence); Satec, Pierre Le Morzadec, Stéphane Arseau (insurance due diligence).
Vendor – Willkie Farr & Gallagher, Christophe Garaud, Gil Kiener (legal).
Management – Delaby & Dorison, Emmanuel Delaby, Romain Hantz, Alexandre Tardif (legal); GCA, Alexandre Gaudin, Thomas Brillet (legal).