Core Equity scores Provalliance deal

Financial details were not disclosed. French daily Le Figaro previously reported that the deal valued Provalliance at between €500-600m, with Core Equity securing a 54% stake.

The founding Provost family, as well as the current management of the Provalliance group, will remain significant shareholders and retain executive positions.

Management at Provalliance hired UBS to handle the sale process in 2019, as reported at the time by Unquote sister publication Mergermarket. The asset was marketed based on EBITDA of around €60m; the process was thought to be limited in scope, with Ardian, HIG and Bridgepoint among the interested PE parties at the time.

The process went quiet until this year. Alantra was running this latest iteration of the process – Fabrice Scheer, who joined the firm as managing partner in early 2020 and worked on the deal, was previously managing director at UBS.

Provalliance reported an operating margin of 15-20% on revenues of €450m in 2019. In 2020, revenues plummeted by 30% because of the Covid-19 lockdowns, but the company was still in the black and did not use the loan guaranteed by the French government, the Figaro report noted.

Brussels-based buyout firm Core Equity held a final close for its maiden fund on more than €1bn in 2017, exceeding its original target of €750m. The vehicle targets companies valued at €300m-1bn.

Founded in 2015 by four ex-Bain Capital senior members – Walid Sarkis, Thomas de Waen, Alain Stoessel and Marc Valentiny – Core Equity aims for investments period of up to 15 years.

Previous funding
In 2017, sponsor Chequers Capital sold its 40% stake in Provalliance that it had acquired in 2012, leaving the founding family and management as the company's sole shareholders. According to a source close to the deal speaking to Unquote at the time, enterprise value was within the €350-450m range, representing a 7.5-8x EBITDA multiple.

Company
With roots going back to Frank Provost's first salon in 1975, Provalliance has a global network of 3,200 salons operating under 17 separate brands, including Frank Provost and Jean-Louis David. It also operates Bleu Libellule, an omnichannel distributor of professional haircare products. Provalliance generates a €1.5bn turnover and employs 7,000 staff.

People
Core Equity Holdings – Pierre Heinrichs (partner); Arthur de Clermont-Tonnerre (head of France).
Provalliance – Marc Aublet (CEO).

Advisers
Equity – Eight Advisory, Stéphane Vanbergue, François Gallizia, Benoit Gorge (financial due diligence); LEK Consulting, Remy Ossmann, Stephane Claquin, Fadi Chebli, Lise Djaad (commercial due diligence).
Vendors – Alantra, Fabrice Scheer, Nicolas Senlis, Alexis Laurent (M&A); Paul Hastings, Olivier Deren, Sébastien Crépy, Nicolas Lovas (legal).

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