Parquest and CM-CIC back Caillau MBO

José Rojo
16 July 2015

Tweet
Facebook
LinkedIn
Google plus
Send to

Parquest Capital and CM-CIC Investissement have backed the MBO of French hose clamps manufacturer Caillau alongside its management team and employees from a pool of investors.

Caillau's enterprise value was not disclosed, but market sources place it closer to the lower end of the €30-150m that Parquest typically seeks with its investments.

Parquest has yet to communicate the stake it has secured in Caillau, but reports in the French press stated the GP will be a majority shareholder in the company.

The vendors comprised ING Belgique, Arkéa Capital Investissement and 2JP Finances. Led by ING, the trio had been shareholders in Caillau since taking part in an LBO in 2006.

The fresh funds will allow Caillau to expand its production capacity, with plans to build new manufacturing facilities near its headquarters at Romorantin, in central France. The business's management team notably expects to increase its exports following the investment.

The deal came at the end of a negotiation process initiated by investment bank Lincoln International in January, when contact was established with Parquest, unquote" has learned.

The buyout is the second announced by the GP in the space of two months and the third investment to be financed via its €300m Parquest Capital fund. The vehicle's maiden deal was the acquisition of a minority stake in Paris-headquartered insurance claims assessment service Polyexpert in June 2014.

This was followed by a MBO for 5 Santé Group in May after the merger by Parquest of Cliniques de Souffle and Clinique Val Pyrene, carved out from struggling parent Fontalvie.

CM-CIC has also made headlines recently, after announcing its portfolio company Biophytis was aiming to raise €19.9m in its listing on Alternext and investing €40m in support of the MBO of French telecommunications business Circet from its founding shareholders.

Debt
The transaction was further financed by a senior debt facility provided by CIC-Ouest (which acted as the arranger), Arkea, Crédit Mutuel and Banque Européenne Crédit Mutuel (BECM).

In addition, BPI France Investissement and Idinvest Partners jointly supplied a mezzanine loan that was arranged by the former.

Company
Founded in 1919, Caillau specialises in the design of hose clamps that are then sold to clients within the automotive and aeronautics industries.

Headquartered in Romorantin, France, the business employs a workforce of 470. Of its €60m revenues in 2014, 70% were generated outside France.

People
Parquest was represented by partner Pierre Decré, investment manager Guillaume Brian and associate Camille Coutelet. CM-CIC Investissement was represented by principals Thierry Aubert and Hélenn Lemaistre, and managing director François Rouault de La Vigne.

Tom Bousmans is an investment director at ING Belgique, while Yves Turpault is director of Arkéa's Nantes office. Pierre-André Fernandez is Caillau's CEO.

Advisers
Equity – Iteka Corporate Finance, Régis Prunier (Corporate finance); Eight Advisory, Katia Wagner, Natalia Lebedeva (Financial due diligence); Advention Business Partners, Alban Neveux (Commercial due diligence); Mayer Brown, Xavier Jaspar, Emily Pennec, Alexandre Dejardin, Ségolène Dufetel, Laurent Borey, Nicolas Danan, Patrick Teboul, Maud Bischoff (Legal); Agilys, Pierre Jouglard (Legal).
Vendors – Lincoln International, Dominique Lecendreux, Amélie Aurel, Serge Palleau (Corporate finance); EY, Philippe Blanadet, Pierre-Emmanuel Herlin, Lionel Benant, Benjamin Pique, Michel MacCabe, Anne-Elisabeth Combes, Corinne Bourdelot, Bleuzenn Pech de Pluvinel (Financial, commercial & environmental due diligence, tax); AyacheSalama, Olivier Tordjman, Sophie Allex-Lyoudi (Legal).