Ardian invests in TA Associates-backed Odealim

Unquote sister publication Mergermarket reported yesterday (31 May) that the deal values Paris-based Odealim in excess of EUR 900m.

The two sponsors will be refinancing the business with a unitranche amounting to roughly 8x, Unquote sister publication Debtwire reported. Acrmont is the lead provider of the covenant-lite unitranche, a part of which is arranged by Goldman Sachs Private Credit, while Macquarie Private Credit is also providing a part of the new debt package, according to Debtwire.

Odealim was sold based on EBITDA in the EUR 50m–EUR 60m range, with Ardian fending off competition from a number of funds admitted to the second round including Hg Capital, Cinven and Five Arrows, Debtwire reported.

Existing minority shareholder Raise Investissement and Odealim's management team will reinvest in the transaction, according to a press release.

TA acquired the business from Eurazeo in partnership with management in 2018, deploying equity via its TA XI fund. The fund held a final close in June 2015 on USD 5.3bn and targets mid-market companies across a range of sectors and geographies, according to Unquote Data. The group was subsequently renamed to Odealim from AssurCopro.

TA's original buyout was backed by a EUR 100m unitranche and a EUR 40m acquisition facility provided by Tikehau, according to Debtwire. In March 2020, it raised additional financing from Alcentra and Tikehau.

Under TA's ownership, the company has grown revenues from EUR 30m in 2018 to EUR 160m and increased its geographic coverage across France, through acquisitions including Ripert de Grissac and Pisano in Marseille, Brun, Assurgérance and BVD in Lyon, Fidentialp in Grenoble and Bâti-assure in Tours, according to a press release.

Odealim has also diversified into mortgage brokerage and mortgage insurance by investing in Digital Insure in 2020, an insurtech focused on mortgage insurance, and via the acquisition of real estate mortgage broker Artémis Courtage in 2021.

Ardian has experience in the insurance broking space, having previously invested in companies including Siaci Saint Honoré. It currently owns French intermediary Finaxy, a company which it reportedly acquired for circa 15x EBITDA in 2020, according to Debtwire.

The new ownership structure will support Odealim to further consolidate its position in existing markets, notably in construction, with policies covering structural damage, decennial liability, as well as in new sectors of activities like the institutional real estate market. The company will continue to aim to organic growth, diversification and geographic expansion, notably through strategic acquisitions, according to a press release.

Company
Founded in 1998 from the consolidation of several French insurance brokers, Odealim is an insurance broker operating in the property management sector in France. The company acts as an intermediary between primarily property managers, institutional investors and co-ownerships. It designs, produces, prices and manages insurance policies, which are underwritten by blue-chip insurance partners, including multi-risk building insurance, structural damage policies and unpaid rent guaranties.

People
Odealim − Xavier Saubestre (chairman and CEO); Xavier Paturel (CEO).
Ardian − Yann Bak (managing director); Edouard Level (director); Jean-Baptiste Hunaut (senior investment manager); Anaïs Robin (investment manager).
TA Associates – Patrick Sader (managing director); Jeremy Drean (principal).
Raise Investissement – Alexandra Dupont (co-head); Aymeric Marraud des Grottes (partner).

Advisers
Vendor – Lazard (corporate finance); Latham & Watkins (legal); Deloitte (financial due diligence); Deloitte Avocats (tax).
Equity – Nomura, Mirabaud Advisors (corporate finance); Weil, Gotshal & Manges (legal); Roland Berger (commercial due diligence); KPMG (financial due diligence); Magellan Consulting (digital due diligence); KPMG Avocats (legal); Indefi (ESG due diligence).

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• Topics
• Buyouts
• Exits
• France
• Financials
• France
• Partial sale
• Ardian (formerly Axa PE)
• TA Associates
• Raise Investissement