ICG in exclusive talks for Equistone's Stella Group

The sale process, expected to be finalised after the summer, was initiated by a pre-emptive offer put forward by ICG. According to both parties, the transaction will now be submitted for consultation by employee representative bodies, after which it will be reviewed by the French competition regulator.

ICG has yet to comment on the fund it will use for the acquisition, but market sources expect the investment to come via the firm's sixth vehicle. Launched in January 2015, it reached its €2.5bn target at first close in April, according to unquote" data.

ICG stated its interest in Stella stems from the growth track record shown by the group's core business La Toulousaine, which has undertaken a number of bolt-ons in recent years.

These include Profalux, a Thyez-based manufacturer of roller blinds for the private and renovation segments that was acquired by La Toulousaine in 2007. The acquisition of Lorient-headquartered Eveno in 2012 allowed La Toulousaine to develop its presence in the industrial joinery and manufacturing sectors.

Under ICG's ownership, the group intends to stick to the buy-and-build strategy, with a number of acquisitions foreseen for the future.

Previous funding
Should it go forward, the buyout would be the fourth La Toulousaine has undergone since inception. In June 1998, the business was acquired by a pool of investors including 3i and Seventure, which led the investment, and Multicroissance and Viveris Management. The transaction, valuing the business at around €22m, featured a debt package provided by Societe Generale.

In 2003, 3i and Seventure divested their stake to Azulis Capital (then Banexi Capital Partenaires) as well as Groupe LFPI and Cita Gestion.

La Toulousaine changed hands a third time in June 2010, when Equistone backed the business's MBO from Azulis and the remaining previous shareholders. Although a deal value was not provided at the time, the transaction is understood to have valued the business at €150m, with €20m reportedly coming from a mezzanine package arranged by Capzanine.

Company
Stella Group is a manufacturer of closing devices such as steel grilles and shutters, sectional doors, aluminium gates and roller blinds, marketed to around 10,000 clients.

In 2014, the group generated almost €150m in sales via its three subsidiaries. These include Escalquens-based La Toulousaine, reporting €54m in turnover; Thyez-based Profalux, posting revenues of €56m; and Lorient-headquartered Eveno, reporting €40m in revenues. Combined, the three divisions employ 650 people.

People
ICG head of Mezzanine France Hadj Djemai and director Erwan le Tanneur led the deal on behalf of the firm. Meanwhile, Equistone Partners Europe was represented by managing partner Guillaume Jacqueau and partners Gregoire Schlumberger and Thierry Lardinois.

Advisers
Equity - Lazard, Alexandre Benais, Pierre Pasqual (M&A); Latham & Watkins, Thomas Forschbach, Denis Criton, Marie-Emeline Cherion (Legal).
Vendor - Natixis Partners, Bruno Stern, Jérôme Vivien, Benjamin Osdoit, Thomas Flori (M&A); King & Wood Mallesons, Maxence Bloch, David Diamant, Charlotte Cloix (Legal).
Management - Oloryn Partners, Frédéric Janin, Roland de Farcy (Management due diligence); Opléo, Pierre-Olivier Bernard (Legal).

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• Topics
• France
• Buyouts
• Exits
• Industrials
• France
• Intermediate Capital Group
• Equistone Partners Europe
• Secondary buyout