Mikit (France) - Dec 2007

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01 December 2007

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IDI and Platina Finance have acquired 60% and 35% respectively, as part of the secondary management buy-in of home builders franchise Mikit. The remainder is held by management. Platina, which previously held 60% of the equity since a €18m LBO in October 2004, mandated KPMG to run a selection process aimed at private equity firms. TCR Capital, Initiative & Finance and City Star Private Equity were said to be among the bidders. Crédit Agricole Centre Loire and Paris-Orléans provided an A-tranche and mezzanine strip, respectively. Mikit was described as a perfect candidate for a subsequent LBO.

Company

Founded in 1983, Mikit is a network of franchised house builders. Franchisees are typically businesses employing five to 10 staff building two or three homes per month. The company generates a turnover of approximately €14m, with an operating profit margin of 43%, and aims to double revenues within four years. An effort will be made to help franchisees build more homes on their territories and in parallel the business’ financial sponsors have suggested they may begin investing directly in new additional franchisees. A second franchise called Mipa, selling real estate schemes benefiting from tax incentives in the construction sector, will be launched to target the rental market.

People

Xavier Thoumieux, Damien Hereng and Tatiana Nourissat worked on the transaction for IDI, while Thomas Rottner, Fabien Castello and Karim Zaghlan represented Platina Finance. Sylvie Rodier and Luc Dumay provided the senior debt for Crédit Agricole Centre Loire. Michele Mezzaroba, Raoul de Vaucelles and Alcibiade Lichterowicz arranged the mezzanine for Paris-Orléans. Maurice Penaruiz is Mikit’s founder and chairman, while Alexandre Macieira-Coelho is the firm’s managing director.

Advisers

Debt - LR Counsel, Laurence Remond (Legal)Debt - Mayer Brown, Erwan Heurtel (Legal)Equity - Advention, Jean-Christel Trabarel (Other Due Diligence)Equity - Ayache Salama & Associés, Alexandre Tron, Bernard Ayache, Sandrine Benaroya (Legal)Equity - Constantin, Benoît Pimont (Financial Due Diligence)Equity - TAJ, Benoit Dambre (Other Due Diligence)Management - CMS Bureau Francis Lefebvre, Martine Audran (Legal)Vendor - KPMG, Stéphane Pithois (Corporate Finance)