Industries & Finances picks up Chaudronnerie de l'Est

José Rojo
28 May 2015

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Industries & Finances Partenaires has acquired a majority stake in French boilermaker Chaudronnerie de l’Est (CDE) from the company's founding family.

The deal saw members of the Legros family, which founded the business, co-investing to secure a minority stake in CDE.

This is the second investment by Industries & Finances' €135m third fund. Launched in June 2012 with a €125m target, the buy-and-build vehicle draws commitments from CDC Enterprises, CNP Assurances, Idinvest, Axa France, Akina and the European Investment Fund, with foreign LPs representing 60% of the total.

The fund targets majority stakes in companies within fragmented sectors where the enterprise value sits below the €50m mark, according to unquote" data. Prior to CDE, the vehicle's only investment to date is the French firebreak system developer Gesop, which was wholly acquired alongside management from BNP Paribas Développement in July 2013.

According to Industries & Finances, its acquisition of CDE mirrors the buy-and-build strategy it has followed in the past. The GP will support the company as it invests in its management, trade and research and development functions and undertakes acquisitions across different countries and sectors.

Debt
The transaction was financed by a €10.8m debt package arranged by CIC Est and LCL.

Company
Founded in 1966, Chaudronnerie de l'Est is a French boilermaker. It specialises in both high- and low-pressure large thermodynamic reservoirs, which it manufactures and delivers to businesses within the oil industry. The company claims a 35% market share among 14,500 French oil stations.

Additional clients include local councils, farmers, industrial businesses, as well as energy producers such as thermic and nuclear power stations.

Headquartered in Langres, the company employs around 100 staff and reported €16m in revenues in 2014.

People
Industries & Finances Partners was represented by partner Sophie Pourquéry.

Advisers
Equity – Indefi, Julien Berger (Commercial due diligence); Xerfi, Laurent Marty (Commercial due diligence); Grant Thornton, Therry Dartus, Edouard Lobry (Corporate finance, Financial due diligence); Lerins, Laurent Julienne, Romain Ferrando (Legal); ERM, Nathalie Boisaubert (Environmental due diligence).
Vendor – Swiss Life Banque Privée, Alain Kuperty, Caroline Martinez (Corporate finance); Cabinet Levêque‐Vallée, Fabienne Levêque (Corporate finance).