Argos Soditic buys Marchegay

Greg Gille
27 October 2011

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Argos Soditic has acquired a majority stake in the management buyout of French glass structures manufacturer Marchegay Technologies.

This is the last investment for Argos' Euroknights V fund, which closed on €275m in 2006 - the firm raised €400m for its successor at the end of last year. Enterprise value remains confidential.

The seller, industrial group Richel, initiated a sale process before the summer as Marchegay's development plans were no longer aligned with the group's overall strategy. Ernst & Young was mandated to run the process, and an initial agreement was signed with Argos in July.

The GP was attracted by the quality of Marchegay's management and the depth of its development plans. The business will now look to increase its export efforts and will pursue its diversification in the photovoltaic panels market. Add-on acquisitions are not a priority for the time being.

This is Argos' fourth buyout this year, following the acquisitions of Dimar (Italy) and of Saleco and BMF (Switzerland). The GP also divested French portfolio companies Shop Novation and Mertz.

Debt
Marchegay's historical lender Crédit Agricole Ouest Alliance arranged senior debt to finance the acquisition. Leverage accounts for less than 50% of deal value.

Company
Founded in 1948, Marchegay is involved in two main activities. It has historically specialised in the design, construction and installation of glass buildings, in particular production greenhouses and garden centres.

In parallele it has recently focused on the development, manufacture and installation of mounting systems for photovoltaic roofing installations on residential, industrial, agricultural and commercial buildings.

Based in Luçon, Marchegay employs 145 staff and generates a €40m turnover.

People
Gilles Mougenot, Karel Kroupa and Frédéric Quéru handled the deal for Argos Soditic. Franck Campain is CEO of Marchegay.

Advisers
Equity - SJ Berwin, Maxence Bloch, Pierre-Louis Sevegrand, Charlotte Cloix (Legal); Arsène Taxand, Franck Chaminade, Brice Picard (Tax); Ernst & Young, Pierre Jouanne, Charles Rousset (Financial due diligence); Cepton, Bertrand Kleinmann (Commercial due diligence); Solving Efeso, Jean Veillon (Commercial due diligence); Clear Consult, Claire Tutenuit (Commercial due diligence); ACP-Siaci St Honoré, Eric Rémus, Michaël Robart (Insurance due diligence).