Ardian sells Lagarrigue to Naxicap

Alessia Argentieri
27 April 2021

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Ardian has sold its majority stake in a French orthopaedic equipment manufacturer Lagarrigue Group to Naxicap Partners.

Naxicap acquired an 80% stake in a deal valuing the business at around €485m, equal to 18x its 2021 expected EBITDA, according to French publication Capital Finance.

Ixo Private Equity is understood to have sold its minority stake, which the firm had held since 2016.

Ardian put the company on the market in February 2021, when it hired Edmond de Rothschild to advise on the sale. Several private equity firms showed early interest for the business, including Naxicap, IK Investment Partners, Eurazeo, CNP, Cobepa and HDL, according to Unquote sister publication Mergermarket.

At the beginning of April, it was reported by the French press that Cobepa, IK and Naxicap were the last contenders in the auction, which valued the company at around €450m, based on expected EBITDA of €25m for 2021.

The sale to Naxicap ends a five-year holding period for Ardian, which acquired a majority stake in Lagarrigue from Azulis Capital. As part of the deal, Lagarrigue's management increased its holding in the business and Ixo retained a minority stake, while BNP Paribas, Galia Gestion and Acto Mezz exited their investment alongside Azulis. Ardian invested in the company via its €1bn fund Ardian Expansion IV.

Under Ardian's ownership, Lagarrigue consolidated its market position, expanded internationally and completed 25 add-on acquisitions. The company entered new markets, including Spain and North America, and recorded average sales growth of 20% per year.

Previous funding
In 2008, Ixo backed the OBO of Lagarrigue, investing from its FCPR Icso 2 and FIP Aquitaine Pyrénées Languedoc funds. Leverage represented around half of the undisclosed deal value.

Azulis acquired an 80% stake in the secondary buyout of Lagarrigue from Ixo in May 2011. Azulis invested via its FCPR MMF IV vehicle, while Ixo divested its minority stake, making 2.5x its initial investment for a 38% IRR. Ixo reinvested as a minority shareholder in the buyout alongside BNP Paribas Développement and Galia Gestion.

CEO Alain Montean and three other members of the management team acquired the remainder of the shares. Crédit Agricole and LCL arranged a senior debt package to fund the acquisition, understood to be worth around 30% of the enterprise value. Acto Mezz provided mezzanine financing.

Company
Established in 1976 and headquartered in Toulouse, Lagarrigue is a specialist in designing and manufacturing orthopaedic prosthetics for patients suffering from permanent or temporary disability.

The company has an in-house team of ortho-prosthetists. Custom-made products account for 95% of the company's business.

Employing 832 staff, the company generated turnover of €91.6m in 2019.

People
Ardian Expansion – Marie Arnaud-Battandier (managing director).
Naxicap Partners – Luc Bertholat (member of the management board).
Lagarrigue – Alain Montean (CEO); Jean-Pierre Mahé (chair).

Advisers
Acquirer – Indefi (financial due diligence); McDermott Will & Emery (legal).
Vendor – Edmond de Rothschild (corporate finance); BCG (commercial due diligence); Eight Advisory (financial due diligence); Weil Gotshal & Manges (legal).