Emalec (France) - Dec 2007

unquote
01 December 2007

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Crédit Agricole Private Equity (CAPE) has invested more than €7m in equity in return for 20-25% of electrical engineering business Emalec, in an owner buyout valuing the company between €30-35m. The investment opportunity was sourced via the company’s accountant, who contacted several private equity firms. Crédit Agricole Centre Est (CACE) and Banque Populaire Loire et Lyonnais (BPLL) each provided half of a seven-year strip of amortising debt, representing over 50% of the deal’s value. In terms of exits, the business’ profile is reportedly well suited to financial sponsors, but could also attract trade buyers.

Company

Based in Saint Genis les Ollières, near Lyon, Emalec is a multi-specialist maintenance business focusing on SMEs which have a network of sites. The company mainly performs small interventions, such as firealarm systems checks, electrical and air-conditioning work and blocked toilets. Emalec anticipates sales of €20m in 2007, and an EBITDA margin in excess of 20%. The business will look to grow 2-3x within five years. Organic growth, which has been at 30% per year in recent years, is expected to continue at pace with a renewed focus on banking and insurance clients, as well as petrol stations. Acquisitions of smaller competitors are planned, both in France and neighbouring countries.

People

Daniel Balland and Fabrice Voituron worked on the transaction for Crédit Agricole Private Equity. Charles Coutelier and Christian Carrabin arranged the debt for CACE, while Stéphanie Soubeyran did so for BPLL. Jean Jullien and Jean-Pierre Chalençon are chairman of Emalec’s executive board and COO, respectively.

Advisers

Equity - Aon Accuracy, Nicolas Barsalou, Sacha Poignonnec (Financial Due Diligence)Equity - SCP Philippe Clement, Pauline Clémentin, Philippe Clément (Legal)Management - Cabinet Bret Chatanet, Françoise Bret Chataney (Legal)Management - Cabinet Comptabilité Conseil, Olivier Journet (Corporate Finance)

Sourced from: France unquote" 88 (Feb 2008)