PAI sells SPIE in €2.1bn SBO

Greg Gille
31 May 2011

Tweet
Facebook
LinkedIn
Google plus
Send to

A private equity consortium led by Clayton Dubilier & Rice (CD&R) has acquired French engineering group SPIE from PAI partners for a total consideration of €2.1bn.

AXA Private Equity and the Caisse de Dépot et Placement du Québec (CDCQ) co-invested in the transaction. CD&R invested via Clayton Dubilier & Rice Fund VIII, a $5bn vehicle closed in 2010. The private equity firm is believed to have secured two thirds of SPIE shares, with the remainder split between AXA Private Equity, CDCQ, management and employees.

CD&R funds invested €510m of equity in the transaction. AXA Private Equity and Caisse de dépôt et placement du Québec invested approximately €140m each.

CD&R believes SPIE enjoys a strong market position and has an attractive risk profile. The firm is therefore confident in the resilience of SPIE's business model and its growth prospects.

The transaction was initially to be run as an auction process by Société Générale, but the consortium made a pre-emptive offer that was accepted by PAI. Bain Capital and Carlyle were also reported to have teamed up for a joint bid. SPIE also attracted the attention of corporate buyers such as Bouygues and Vinci.

A spokesperson for PAI wouldn't deny nor confirm reports that the Parisian firm reaped around 4x its initial investment in the company.

Debt
A €1.335 billion senior term and revolving credit facility was arranged to finance the deal. A banking pool composed of Morgan Stanley, HSBC, Société Générale, Deutsche Bank and Crédit Agricole CIB is understood to have provided the senior element.

A €375 million bridge loan was also negotiated.

Previous funding
PAI acquired SPIE from its parent company Amec for €1.04bn in 2006. In a very competitive UBS and Citigroup-run auction, PAI saw off 15 rival short-listed bidders.

Since then, the company has acquired more than 50 businesses across Europe and its operational profit has more than doubled, according to PAI.

Company
Cergy Pontoise-based SPIE is a multitechnical services group specialising in electrical, mechanical and HVAC engineering, energy, communication networks and railway infrastructure. It posted a €3.75bn turnover and €192m EBITDA for 2010. Under PAI ownership, the company's headcount increased from 23,000 to 28,600.

People
CD&R and AXA Private Equity were represented by Roberto Quarta and Dominique Gaillard respectively. Olivier de Vregille worked on the deal for PAI partners. Gauthier Louette is chairman and CEO of SPIE.

Advisers
Equity - Debevoise & Plimpton (Legal).