21 Partners exits Interflora in €148m tertiary buyout

Greg Gille
26 May 2011

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21 Centrale Partners has sold flower business Interflora to investment companies Chevrillon & Associés and HLD Associés for €148m.

The buyers acquired both the French and Spanish operations of Interflora, as well as Renaud Distribution, a subsidiary specialising in accessories for florists. 21 Centrale reaped 2.9x its overall investment in Interflora.

The vendor chose to divest as it had been an owner for six years, most development targets had been met, and the acquisition debt largely repaid. The sale was run as an auction process by Leonardo and attracted interest from both investors and trade players.

Previous funding
21 Centrale Partners, via its 21 Centrale Partners III Fund, acquired a 72% stake in Interflora's French business from the Hazak family and Barclays Private Equity (BPE) in 2006. BPE originally bought Interflora in 2003.

The buyout house then increased its stake to 95% by buying shares from a large number of small minority shareholders. 21 Centrale also bought a 63% stake in Interflora's Spanish operations in 2008, a deal valued at approximately €12m.

21 Centrale initiated a shift to the online model for Interflora – originally representing around 20% of the company's revenue, online sales now account for nearly 45% of Interflora's turnover. This strategy played a large part in Interflora's increased profitability, as the company's profit margin is doubled on online sales.

Under 21 Centrale's ownership, Interflora also increased its marketing efforts and expanded internationally, notably in Spain.

Company
Lyon-based Interflora organises the delivery of flowers through a network of 5,000 florists across France and Spain. The group posted a €153m turnover in 2010, for a €16.9m EBITDA. It currently employs 310 people, including 50 in Spain.

People
Stéphane Perriquet led the deal for 21 Centrale Partners. Chevrillon & Associés and HLD Associés were represented by François de Guitaut and Jean-Bernard Lafonta respectively.

Advisers
Vendor – Leonardo (M&A); Veil Jourde (Legal); KPMG (Financial due diligence); LEK (Commercial due diligence).