LBO France's Groupe RG completes impact refinancing
Personal protective equipment (PPE) distributor Groupe RG – a portfolio company of LBO France – has announced a refinancing via an impact loan from new and existing debt providers.
The facility is underwritten by impact and direct lending funds Eiffel, Amundi, Schelcher Prince, Lyxor and CIC PD, as well as by the company's existing banks: Crédit Lyonnais, Palatine, Crédit Agricole, Banque Populaire and BNP Paribas. Crédit Lyonnais and Palatine were the coordinating banks for the deal.
The refinancing comprises a €128m senior debt facility and a revolving credit facility.
The impact component of the loan is intended to support ESG programmes launched by the company in the markets in which it operates, according to a statement. The criteria set within the loan will affect the cost of the debt repayments.
LBO France entered into exclusive negotiations to acquire a majority stake in Groupe RG from Abénex Capital in July 2017. The deal valued the company at around €145m, equivalent to 10x its EBITDA at the time, according to Unquote Data. LBO France invested via its €450m 2013-vintage White Knight IX vehicle.
The company has made nine add-ons under LBO France's ownership; most recently, in October 2020, it acquired Italy-based market peer Nuova OLP.
The GP also assisted portfolio company Moustache Bikes with an impact loan in January 2021.
Company
Groupe RG was founded in 1987 and is headquartered in Reims. The company distributes PPE products in six core fields: head; hands; feet; body; breathing; and hygiene and safety. In addition, Groupe RG sells its own products under its Ergos brand, providing products for companies including industrial and service-focused SMEs, as well as public organisations.
The company posted revenues of €180m at the time of its acquisition by LBO France and now generates a turnover of more than €200m, according to its website.
People
LBO France – Simon Couturier (investment director, mid-cap).
Groupe RG – Pierre Manchini (CEO).
Advisers
Company – Mayer Brown, Maud Bischoff, Emily Pennec (legal); Deloitte, Frédérique Lévèque-Chenevoy (financial due diligence); LEK Consulting, Serge Hovsepian, Maxime Julian, Stéphane Claquin (commercial due diligence).
Debt – De Pardieu Brocas Maffei, Christophe Gaillard (legal).
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