PAI Partners backs Apave

PAI has invested an equity cheque of €250m to acquire a stake just north of 33%, in a deal that gives the company an enterprise value of around €700m, equal to approximately 10x its EBITDA, a source close to the situation told Unquote.

The GP is investing alongside Gapave, the association that owns Apave Group and will remain the largest shareholder in the company post-deal.

PAI will deploy capital from PAI Europe VII to invest in the company, a source close to the situation told Unquote. The fund closed on its €5bn hard-cap in March 2018. It invests in continental European business with enterprise values between €300m and €1.5bn.

Apave hired Canaccord Genuity in November 2020 to run the sale, which attracted the interest of several private equity firms, including Cinven and Eurazeo, according to Unquote sister publication Mergermarket. The company was looking to sell a stake of around 25% for €250m, according to Mergermarket. In April 2021, Capital Finance reported that PE firms PAI Partners, Core Equity and Montefiore were the three contenders competing in the second auction round to acquire a stake in the business.

Following the acquisition, PAI intends to boost the company’s growth, finance external growth operations, and double its international sales.

Company
Established in 1867, Apave is a testing inspection and certification (TIC) specialist for the construction, transport, energy and industrials sectors.

The business specialises in the field of technical, environmental, human and digital risk management. Employing 12,400 staff, Apave operates 130 agencies, 170 training sites and 18 testing centres, with an international presence in 45 countries.

The company generated a turnover of €881m in 2019 and EBITDA of approximately €70m from revenue of around €900m in 2020, of which around 20% came from outside of France.

People
PAI Partners – Laurent Rivoire (managing partner).
Apave Group – Philippe Maillard (CEO).

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