Alma Consulting (France) - Dec 2007

unquote
01 December 2007

Tweet
Facebook
LinkedIn
Google plus
Send to

Candover has acquired between 50-60% of corporate cost-reduction advisory business Alma Consulting, from its previous backers Apax Partners SA and Chequers Capital, which have realised their entire stakes. Management retains the balance. Following this deal, which was secured as the result of a pre-emptive offer, Candover’s 2005 Fund will be 57% invested.

Financing

This deal’s originality lies in the fact that no new senior debt will be provided. Royal Bank of Scotland (RBS), the company’s current agent and arranger of the company’s existing debt, only underwrote additional mezzanine and capex facilities. Alma Consulting had been subject to a €90m refinancing at the end of June 2007, just before the summer. Currently, the newco still holds more debt than equity (approximately €350m), but the gearing is significantly lower than was typically the case before the credit contraction. A recapitalisation may take place when the debt market recovers.

History

Chequers originally invested in the company in 2001, after its separation from parent company PRG. In December 2005, in a deal valuing the company around €400m, Apax Partners backed the company’s secondary buyout, while Chequers reinvested in exchange for a minority stake (December/January 2005, page 38). Apax Partners has reportedly used the company’s services on its own portfolio companies, a strategy which Candover may also adopt.

Company

Alma Consulting Group was founded in 1986 and is headquartered in Levallois Perret near Paris. The company provides advisory services aimed at reducing social costs, tax-related costs, operating costs and innovation financing. The firm makes its revenues from success fees. In 2004, the company had a €67.5m turnover; a figure which jumped to €153m in 2006, and is expected to pass €180m in 2007. The group operates in France, Belgium, Spain, the UK, Italy, Poland and Israel. It has more than 10,000 clients, including 60% of France’s 200 largest companies, and 35 of the CAC40-listed groups. Following the investment, the company is planning to grow through acquisitions and continue to strengthen European markets such as Germany and Southern Europe.

People

Bertrand Finet worked on the transaction for Candover, while Geoffroi de Saint Chamas arranged the debt for RBS. Monique Cohen and Franck Hagège negotiated the exit on behalf of Apax Partners. Marc Eisenberg is Alma Consulting’s CEO.

Advisers

Equity - Deloitte, (Financial Due Diligence)Equity - Gibson Dunn & Crutcher, (Legal)Equity - TAJ, (Tax)Equity - UBS , (Corporate Finance)Management - White & Case, (Legal)Vendor - Weil Gotshal & Manges, David Aknin (Legal)