ADF (France) - Dec 2007

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01 December 2007

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Edmond de Rothschild Investment Partners (EdRIP) has supported the management buyout of industrial maintenance business ADF, from state-backed Gaz de France. The vendor mandated Société Générale to run a selection process aimed at identifying a backer. EdRIP reportedly won the auction in part thanks to its plan to create a FCPE vehicle allowing all of the company’s 1,600 employees to invest in the buyout. The majority stake EdRIP took in this deal will be partially syndicated to other private equity firms, to bring the lead investor’s share below 50%. Around 300 of the company’s managers have already taken a 42% stake in the company.

Financing

Crédit du Nord agreed to arrange a debt package worth less than half of the deal’s value at the end of July 2007, comprising a B-tranche (around 24% of the debt) and a bridge-loan. Gaz de France had acquired ADF from Cofatech in 2001.

Company

Vitrolles-headquartered ADF maintains industrial installations, both on an on-going and project basis. Existing clients hail from the oil, metals and manufacturing sectors. The company will aim to grow mostly organically, by focusing on manufacturing and energy, and by providing waste management services, notably in the nuclear field. The group’s revenues increased from €80m in 2001, to more than €175m in 2006, and are expected to reach €300m within five years. Acquisitions will be considered on an opportunistic basis.

People

Antoine Le Bourgeois, Sylvain Charignon and Laurent Tourtois worked on the deal for EdRIP, while Elisabeth Morin-Gaillard and Audrey Nodin arranged the debt for Crédit du Nord. Marc Eliayan is ADF’s CEO.

Advisers

Equity - EKO - Consulting, Nathalie Wawrynow (Environmental Due Diligence)Equity - Grant Thornton, Frédéric Zeitoun, Nathalie Margraitte (Financial Due Diligence)Equity - Norton Rose LLP, Laurence Toxé (Other Due Diligence)Equity - Norton Rose LLP, Erwan Hericotte, Pascale Gallien (Legal)Equity - Norton Rose LLP, Grégoire Tenaillon, Laurence Toxé (Other Due Diligence)Management - Fidal, Patrice Poyac (Legal)Vendor - Société Générale, (Corporate Finance)