IK sells Idex to infrastructure fund Cube

Greg Gille
01 September 2011

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IK Investment Partners has sold French energy and environmental services company Idex to Cube Infrastructure.

Deal value remains undisclosed, but was confirmed to be in the €300-500m range.

IK stated that the value-creation strategy it envisioned at the time of the original investment had been successfully initiated. It also believes Idex is now well positioned to take advantage of the growing demand for energy services in France.

The GP therefore decided at the beginning of the year to exit the business. JP Morgan was then mandated to look at potential acquirers, with a preference for corporate buyers and infrastructure funds.

Cube made a pre-emptive offer for the business before the summer and was deemed a good fit by both IK and Idex's management. IK declined to comment on return figures for this investment, but stated it had been profitable.

Previous funding
IK backed the €200m buyout of Idex from the Planchot family, CDC Entreprises Services Industrie (CDC-ESI), Natexis and private individuals in 2004.

The GP proceeded to re-focus the business on core energy and environmental services activities in France, divesting non-core operations along the way. Organic growth was driven through both the extension of current contracts and by securing new clients. The company also expanded geographically through selective acquisitions such as ISS Energie and Stepnor.

Operational improvements undergone since 2006 include a simplification of Idex's administrative structure, as well as the improvement of the procurement structure and working capital process. Capital expenditure was also optimised through project financing.

Under IK's ownership, Idex's headcount rose by 25% while turnover increased by 40% to €525m.

Company
Founded in 1963 and based in Boulogne-Billancourt, Idex is an independent group specialising in energy and environmental services for businesses. The company employs a staff of 3,500 and reported a €525m turnover for the financial year ending February 2011.

People
Dan Soudry led the deal for IK. Frédéric Viet is CEO of Idex.

Advisers
Vendors – JP Morgan (M&A); XK Corporate Finance (M&A); White & Case (Legal).