Azulis Capital buys Lagarrigue from iXO

Azulis invested via its FCPR MMF IV vehicle. iXO Private Equity divested its minority stake, making 2.5x its initial investment for a 38% IRR. However, it reinvested as minority shareholder in the buyout alongside BNP Paribas Développement and Galia Gestion.

The private equity investors secured an 80% stake in the business. CEO Alain Montean and three other members of the management team will hold the remainder of the shares.

Lagarrigue will now look to strengthen its position on the prosthetic and orthotic devices market, by increasing its distribution footprint across France. It will also aim to launch new products to address unmet needs in these markets.

Debt
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.

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

Since then, the company increased both its turnover (from €16m to €21m) and its profit margin by acquiring small players on the orthopedic devices market.

Company
Toulouse-based Lagarrigue designs and distributes prosthetic and orthotic devices. Operating through 15 branches across France, the group posted a €21m turnover in 2010 - with a 20% EBITDA margin - and employs 200 people.

People
Christine Mariette and Caroline Chemel led the deal for Azulis Capital. BNP Paribas Développement and Galia Gestion were represented by Patrice Vandenbossche and Christian Joubert respectively. Bruno de Cambiaire and Nicolas Olives worked on the transaction for iXO Private Equity.

Advisers
Equity – Cabinet GGSM, Marc Baffreau, Jean-Maurice Gaillard, Eric Labro (Legal); Mazars, Olivier Bietrix, Valéry Nabomtz (Financial due diligence); Ariane Santé Social, Thierry Boval (Commercial due diligence).
Company – Edmond de Rothschild Entreprises Patrimoniales, Gilles Copin, Henriette Le Bihan (Corporate finance); Coteg & Azam Associés (Legal).

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• Topics
• France
• Buyouts
• Healthcare
• Exits
• France
• Azulis Capital
• Secondary buyout