A Plus Finance backs MBI of Passage

Lombardo will carve out Passage from shoes and textile distributor Groupe Eram, the company's parent since its foundation in 1978. The divestment is part of Eram's strategy to refocus on its core business lines.

Passage's new CEO was backed by French firm A Plus Finance, which injected equity and issued convertible bonds in exchange for a stake in the 30-45% range, a source told unquote".

Meanwhile, the remaining stake will be controlled by Lombardo and Passage's managers Sandrine Herbert, Julien Suzineau and Hugues Lacroix – the three will keep their roles after the deal – and several individual backers.

The latter group includes Fredrik Sontag, a director at HIG Capital's Paris offices who was appointed as head of Passage's supervisory board post-deal. Sontag was joined by Equitis Gestion managing director Philippe Bertin and Florac Capital senior adviser Jacques Laborde.

Over the next few years, Passage expects increased demand for its core products – tactile strips, anti-slip products and urban paving – both in France and abroad as stricter accessibility regulations come into force worldwide.

According to an unquote" source, A Plus Finance drew equity from one of its FIP vehicles and an FCPR, which has so far raised €15m of a €20-30m target; Passage represents its fifth deal to date.

The French GP was first approached about the asset in April, when it was contacted by Cyrille Lombardo and Fredrik Sontag. The ensuing negotiations were intermediated by corporate finance house Sodica, unquote" understands.

The MBI is the second to involve A Plus Finance in France over the past few months. In September, the firm joined forces with the healthcare arm of VC Turenne Capital Partenaires as they backed the takeover of package business Sopac Medical by new managing director Fabrice Beauquesne.

Debt
The MBI was supported with a senior facility provided by CIC Ouest Angers, Crédit Mutuel Anjou and BPI France Pays de la Loire. The size of the package remains confidential, but A Plus Finance typically prefers deals leveraged at 3.5x EBITDA.

Company
Founded as a unit of now-former parent Eram in 1978, Passage started out as a manufacturer of synthetic soles.

During the 1980s, the company diversified into the design of slip-proof strips and signage products used by the roads, construction and transportation industries.

Headquartered in Chalonnes-sur-Loire, near Angers, the business currently employs around 25 staff and generated close to €5m in revenues in 2014.

People
A Plus Finance was represented by investment director Jean-Christophe Sampson and project manager Mia Lauranti. Cyrille Lombardo is Passage's new CEO, while Xavier Biotteau holds the same position at Eram.

Advisers
Equity – K&L Gates, Nicola Di Giovanni, Hala Nehmé (Legal); Bonna Auzas Avocats, Sigmund Briant (Legal); D'Ornano & Associés, Raphaëlle d'Ornano (Financial due diligence).
Vendor – Sodica Corporate Finance, Agnès Marossero, Bastien Robert (Corporate finance).
Management – Stehlin & Associés, Svetlana Tokoucheva (Legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• France
• Buyouts
• Industrials
• France
• Management Buy-in
• A Plus Finance