Alpha in €400m deal for Qualium's Cofidim

Contacted by unquote", Alpha did not disclose Cofidim's enterprise value but the GP typically targets companies with an enterprise value of between €50-500m.

According to reports in the French press, the asset was priced around €400m during the exclusive talks in January 2016 between Alpha, its owner Qualium and corporate buyer Monnoyeur. Alpha's proposed price tag was €20m higher than the one submitted by competing suitor Trilantic Capital Partners, according to the same reports.

Speaking to unquote", a source familiar with the situation explained that the sale represents Qualium's third attempt to divest Cofidim. In 2011, the exit was put on hold due to the difficulties experienced by one of the group's Spanish subsidiaries, brought down by a tough market environment in the country.

According to the same source, Alpha was approached when the process resumed in late 2014 but the GP, unenthusiastic about joining an auction, declined to take part. Contacts resumed in September 2015, when Qualium returned with an offer to initiate exclusive talks, the source added. 

Under Alpha's tenure, Cofidim will try to push revenues and EBITDA beyond the current €867m and €55m figures; the focus will lie on its flagship garage brand Feu Vert. Having launched a dedicated website in 2012, the subsidiary will bolster its digital presence through the "Audace" scheme and develop new mobility-related services. Feu Vert will look to expand its presence into new countries after having broken into Madrid, Lisbon and Warsaw from its French base.

The SBO sees Alpha draw equity from its sixth fund. Launched in February 2011, the fund held a €500m first close in July of the same year and fell short of its €750m target when it closed on €700m in June 2012. According to the unquote" source, the deal is the eighth to be financed by the vehicle, which was invested at 70% as of mid-February 2016.

Debt
A debt facility was provided by BNP Paribas and Hayfin Capital Management. Meanwhile, CM-CIC Private Debt, Five Arrows Credit Solutions and BNP Paribas Principal Investments came together to arrange a mezzanine package.

Previous funding
The SBO will mark a full exit for Cofidim's owners Qualium and Group Monnoyeur. Both have been co-shareholders since March 2007, when Monnoyeur, previously the full owner of Cofidim, divested a 66% stake to Qualium and kept the remaining 34%.

Qualium's takeover came at the end of an HSBC-run auction for the asset. Investing via its CDC Capital III, CDC Capital IIIb and CDC Investissement Long-term vehicles, the GP was thought at the time to have emerged as the winning bidder due to its plans for a longer holding period than its competitors.

Aside from the GP's equity, the 2007 takeover was financed via a senior package from BNP Paribas and Natixis, and a mezzanine line and a PIK note from ICG, according to unquote" data. 

Company
With headquarters in Ecully, near Lyon, Financière Cofidim is a car maintenance and auto parts group that comprises the Feu Vert, Mondial Pare Brise and Impex brands. Feu Vert is the group's flagship unit and runs a 462-strong garage network in France, Spain, Portugal and Poland. According to its figures, its 6,470 employees service 10 million customers Europe-wide, leading to a €677m turnover in 2015.

Meanwhile, Impex was created in 1970 and sells automotive and biking accessories. The business works with an estimated 4,000 customers in France, Spain, Italy and China, and generated more than €101m in sales in 2015.

The smallest of the three units, Mondial Pare-Brise was incorporated into the group in 2000 and has since specialised in the maintenance of car glazing and windshields. Targeting insurance and fleet lessor customers, the subsidiary operates 266 centres in France and posted €89m in revenues in 2015.

People
Alpha Associés Conseil – Olaf Kordes (partner); Xavier Payet (investment director); Marlène Bazouin (associate director).
Qualium Investissement – Paul Costa de Beauregard (deputy managing director); Guillaume Peroz (director).
Financière Cofidim – Bernard Perreau (chair of the executive board).

Advisers
Equity – BNP Paribas, Hervé Letalenet, Guillaume Werner, Laurene Gauthier (M&A); Eight Advisory, Katia Wagner (financial due diligence); LEK, David Danon-Boileau, Remy Ossmann (commercial due diligence); Mayer Brown, Emily Pennec, Vincent Né- dellec, Patrick Teboul, Alexandre Dejardin, Benjamin Homo (legal, tax); ERM, Julien Famy (environmental due diligence); ExFi, Emmanuel Parmentier (social due diligence).
Vendor – HSBC, Patrick Cazalaa, Dimitri Fotopoulos (M&A); Rothschild & Cie, Laurent Baril, David Kakon (M&A); PwC, Martin Naquet Radiguet (financial due diligence, tax).
Debt – Latham & Watkins, Michel Houdayer (legal).

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• Topics
• Buyouts
• Exits
• Consumer
• France
• France
• Secondary buyout
• Qualium Investissement
• Alpha Private Equity