Ardian to sell Novarc minority stake to BPI France et al.

Pending regulatory approval, the deal will see Novarc CEO Frédéric Croullet remain as majority owner. Meanwhile, the company's management team and employees will re-invest to keep a minority holding; Novarc's workforce have been shareholders since Ardian opened the capital structure to its staff, a practice that has gained traction in France.

The GP's stake will be acquired by BPI France, Ardian's fellow minority shareholder since their joint takeover in 2012. Also investing as new shareholders will be Amundi PEF, Casra Capital and BNP Paribas Développement.

Under their tenure, Novarc intends to continue the build-up drive it has undertaken over the past few years. Having sealed 20 bolt-ons since inception, the business will target add-ons in new markets as part of its plans to push turnover up from the current €114m figure to €200m by 2020.

Previous funding
Ardian and BPI France became shareholders in Novarc in May 2012, when the duo secured a joint 20-25% stake in the business, then called Sibille. Speaking to unquote", a source close to the deal stated that Ardian invested via its €353m second expansion fund, which will hold three portfolio companies once Novarc has been exited.

Under BPI France and Ardian's three-year ownership, Novarc switched headquarters, set up a new brand and grew to operate 14 sites in France. In addition, the company carried out five bolt-ons during the period including Australian electrical safety equipment distributor Hylec. Put together, the changes have reportedly led to sales climbing from €78m in 2011 to the €115m expected for 2015.

Company
Founded in 1993, Novarc operates via two separate subsidiaries: ESP manufactures electrical safety equipment used by the power industry, while PSAI provides car maintenance products to automotive and industrial clients.

Headquartered in Malataverne, the company employs 600 professionals and expects to end 2015 with an operating margin above 12% from €115m in revenues – two thirds of which will come from the ESP unit.

People
BPI France was represented by managing director Nicolas Manardo, investment director Alexis Guinard, investment manager Martin Lochon and legal officer Fabienne Gérard. Meanwhile, associate director Alexandre Flageul led the deal for Amundi PEF, as did managing director Jean-Yves Riowal for Casra Capital and investment director Gilles Poncet for BNP Paribas Développement.

Ardian's work on the deal was coordinated by Arnaud Dufer, who heads its expansion arm, as well as managing director Alexis Lavaillote and investment manager Arthur de Salins. Frédéric Croullet founded Novarc and is the company's current CEO.

Advisers
Equity – Eight Advisory, Stéphane Vanbergue, Natalia Lebedeva (Financial due diligence); Renault Thominette Vignaud & Reeve, Olivier Renault, Juliette Bordat (Legal).
Vendor – LL Berg, Olivier Abergel, Gaelle Quivillic (Legal).
Company – Paul Hastings, Pascal de Moidrey, Edith Boucaya, Pierre Kirch (Legal).

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• Topics
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