Motion and FSI inject additional €80m into Tokheim

Greg Gille
15 June 2012

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Motion Equity Partners (formerly Cognetas) and Fonds Stratégique d'Investissement (FSI) have provided French fuel distribution solutions company Tokheim with an €80m equity injection as part of a larger refinancing operation.

Motion provided €32m, while FSI injected the remaining €50m.

Motion (then Electra Partners Europe) backed the €250m secondary buyout of Tokheim from AXA Private Equity in 2005. The GP initiated a dual process to look at options for the business last year, including a potential sale and a refinancing option. Due to adverse market conditions, the sale option was dropped at the end of 2011 and Tokheim went forward with plans for a bank refinancing.

Motion's renewed support, along with the arrival of FSI as a shareholder, will allow Tokheim to push forward with its growth plans. These include acquisitions in emerging markets, the development of greenfield projects, and strategic joint ventures with third parties.

Debt
The new €180m senior debt package was provided by an eight-strong banking club comprising BNP Paribas, Société Générale, HSBC, ING, IKB, GE, Mitsuho and Natixis.

As a result, Tokheim's net debt now stands at around 3.7x EBITDA, down from 4x.

Previous funding
The 2005 SBO of Tokheim was leveraged through a debt package underwritten by BNP Paribas. Senior debt amounted to €155m and comprised an A-tranche (50%), a B-tranche (25%) and a C-tranche (25%). The bank arranged €15m of second-lien facilities and €20m of warrantless mezzanine financing. The package was completed by revolving credit facilities and a line of capex.

In January 2008, Motion was able to return €64m (91% of its investment) to its investors following a refinancing of the company. The GP also injected additional equity to fund two acquisitions for Tokheim, in 2008 and 2009.

Company
Paris-based Tokheim offers service station fuel dispenser solutions, including service and maintenance, dispensing systems, automated payment solutions and construction.

The company has factories in the UK, China and India. It employs more than 5,000 people worldwide and generates a €643m turnover (up from €360m at the time of the 2005 buyout).

People
Cedric Rays worked on the deal for Motion. Baudoin de la Tour is CEO of Tokheim.