Siparex reaps 20% IRR on Sogexi exit to Lacroix

Siparex reported a 20% IRR over the 2006-2015 period, when all investments into Sogexi were financed via its Siparex Midcap I fund. Although the GP would not disclose a return multiple, market sources place it in the 2-4x region.

The trade sale comes 12 years after Siparex became a shareholder in Sogexi. In June 2003, the GP drew €2m of equity from its Siparex Croissance, Siparex Développement, and Rhône-Alpes PME funds in support of a €6m MBO for the company alongside PactInvest. Siparex secured a majority stake in Sogexi, while the business's management team came to hold a minority stake, according to unquote" data.

The transaction initiated a transition period for Sogexi, whereby ownership was transferred from its founder Jacques de Brabois to the management team. Speaking to unquote", Siparex senior investment manager Guillaume Rebaudet explained the long-term goal was to have the management's stake gradually increase until a buyer could be found for Sogexi.

This was accomplished by a first capital reshuffle in 2006, when the business's managers, led by CEO Marc Villez, increased their stake as senior debt was injected into Sogexi. According to Rebaudet, Siparex used its €124m Siparex Midcap I fund to support this second MBO.

The GP drew equity from the same vehicle in 2011, when a third MBO was orchestrated for Sogexi. The €5m deal, featuring equal €2.5m contributions from Siparex and BNP Paribas Développement and a new senior debt facility, saw the management team become majority shareholder in the business for the first time.

According to Rebaudet, an exit for Sogexi came into consideration as the shareholders were approached by Groupe Lacroix, attracted by the business's focus on smart city technologies. The sale, negotiated without any intermediaries, was finalised after a few weeks.

This is the second asset to be exited by Siparex in the past few weeks, according to unquote" data. In early July, the GP scored a return in excess of 2x as it divested its minority stake in French electrical power provider Groupe Sylpa back to the company's management.

Company
Founded in 1981 by Jacques de Brabois, Sogexi designs connection cases intended to protect outdoor lighting installations such as street lamps or road signs. With headquarters in Lyon, the business distributes its products via a network of 15 sales teams in France and 30 distributors worldwide.

Employing a workforce of 55 professionals, Sogexi generated sales of €12m in 2014. The figure represents almost a two-fold increase with regards to the €6.6m reported in 2002, prior to its acquisition by Siparex.

People
Siparex was represented by associate director Florent Lauzet, senior investment manager Guillaume Rebaudet and project manager Martin Darne.

Advisers
Vendor – Lamy Lexel, Jean Pierre Gitenay, Elodie Favre-Lorraine (Legal); Lexcase, Philippe Drouillot (Legal).

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

• Topics
• France
• Exits
• Industrials
• France
• Siparex
• Trade sale
• unq2015sep