Perceva Capital backs bolt-on for Shark

Sonnie Ehrendal
25 November 2011

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Perceva Capital has supported motorcycle helmet supplier Shark's add-on acquisition of Holding Trophy.

Perceva injected over €5m to support the transaction.

Partner Xavier Lépine told unquote" that Perceva had been looking to combine Shark and Holding Trophy but did not reach an agreement with its owners and financiers earlier this year.

On 6 October Holding Trophy filed for bankruptcy and Shark, emerging as a preferred buyer, created a newco, which took over 100% of the company's assets. The company's debt was written off.

The deal gave helmet manufacturer Shark three new brands and expanded its product range to incorporate motorcycle gear and vehicle equipment. Lépine said the brands will remain separate, but the foreign presence of Shark will be used to boost exports for the new additions. Another key component of the growth strategy will be to focus on R&D to facilitate the launch of new products.

Perceva acquired Shark from AtriA Capital in a secondary buyout and recapitalisation in March earlier this year. The deal was not leveraged at the time and the investor planned to grow the company through market expansion.

The deal also represents an exit for TCR Capital and its third fund, which acquired Holding Trophy in 2008.

Debt
No debt was needed to finance the acquisition.

Company
Shark, founded in 1929, produces and distributes motorcycle helmets. It has two factories in France and employs around 670 staff. Based in Marseille, it recorded €30m sales in 2010, with around 60% exports.

Holding Trophy, headquartered in Paris, supplies motorcycle gear and vehicle equipment and holds the brands Bagster, Bering, and Ségura. Founded in 1993, it recorded a €30m turnover in 2010, with around 20% exports.

People
Partner Xavier Lépine and associate Rodrigo de Carvalho worked on the deal for Perceva. Patrick François is the president of Shark.

Advisers
Equity - Brémond & Associés, Guilhem Brémond, Dimitri Sonnier, Julie Desson (Legal); Veil Jourde, Géraud Saint Guilhem, Sylvain Clérambourg (Legal); Ernst & Young, Améziane Abdat, Agnès Courtade (Financial due diligence).