Naxicap to exit ECF in SBO to PAI

After completion, Naxicap will remain a minority shareholder in the business alongside PAI and the management team, according to a press release.

Unquote sister publication Mergermarket first reported in November 2022 that Naxicap had mandated Lazard for the sale of the business. The process was reignited in May 2023, with the company being marketed off EUR 90m in FY23 EBITDA with PAI among the interested bidders, as reported.

Naxicap Partners first acquired the business from French private equity group Tikehau Capital in 2017 for EUR 18.2m, as reported.

In recent years, ECF added complementary product lines and expanded its geographic footprint, according to the statement.

ECF has made a series of bolt-on acquisitions and has grown extensively through M&A in recent years, a source familiar with the situation told Unquote. In doing so, it has built out its core business lines, expanded into new geographies and grown its product offering to approximately 50,000 products, said the source.

Earlier this year, the company bought Oxstal, a French designer and distributor of tableware products, in a deal valuing the target between EUR 20m and EUR 50m, as reported.

With PAI's support, ECF will look to further accelerate its growth, both organically and through acquisitions, said the statement.

The GP sees significant consolidation opportunities due to the fragmented nature of the markets in which ECF operates, said the source. PAI has also identified potential opportunities in new markets, with the aim of widening the brand and product offering, the source added.

The GP will be investing in the company via PAI Partners VIII, the firm's latest flagship fund, which was registered with Luxembourg's Registre de Commerce et des Sociétés on 28 September 2021 and has a target of EUR 7bn and a hard-cap of EUR 8.5bn, according to Unquote Data.

The GP made a binding offer to acquire The Looping Group in May 2023, as reported, which marked the fourth investment from its eighth fund. The fund's previous acquisitions include IFF's Savory Solutions in December 2022 and French frozen desserts supplier La Compagnie des Desserts in February 2023, as reported.

PAI Partners declined to comment, Naxicap did not respond to a request for comment.

Company
Headquartered in Grigny, France, ECF's partner- and private-label brands offer more than 50,000 products sourced from more than 700 suppliers globally. The majority of sales comprise small equipment and consumables, as well as hygiene products, professional kitchen equipment and furniture. The group operates an omnichannel business model serving professional customers and corporate clients across multiple geographies, including France, Australia and New Zealand, Europe, and the Middle East. Today, ECF employs more than 1,750 employees, operates 50 stores, and manages 40 logistics centres, with annual revenues of approximately EUR 760m.

People
PAI Partners − Mathieu Paillat (partner).
ECF Group − Christophe Alaux (chairman and CEO).
Naxicap − Axel Bernia (partner).

Advisers
Equity − Rothschild & Co, Crédit Agricole (corporate finance).
Vendor – Lazard (corporate finance).

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