EdRip in exclusive talks for LBO Partners' Rougnon

The transaction, expected to go forward in June, is subject to approval by the French competition regulator.

According to market sources, LBO France intends to fully exit its stake in Rougnon. Information regarding the proceeds the buyout house stands to reap remains confidential.

EdRip, which is currently considering proposals by potential debt suppliers, will deploy €20m to acquire its minority stake in the company. Meanwhile, both the Rougnon family and the business's management team will invest in the transaction.

EdRip drew equity from its Winch Capital 3 Fund. Launched in September 2013, the vehicle exceeded its €250m target and reached its €300m hard-cap in September 2014, according to unquote" data.

Winch Capital 3 usually deploys €7-25m equity tickets to acquire minority stakes in French and Italian SMEs with turnover betweeen €30-300m.

The fund recently supported the buy-in management buyout of Eurogiciel, another company in the business support services sector. The transaction saw the French GP depart from its usual minority investment strategy and secure a majority stake.

EdRip stated it was first attracted by Rougnon's strong management team and track record in environmental engineering – a sector the Paris-based house was already familiar with due to previous investments.

Under the firm's ownership, the maintenance and breakdown service provider intends to consolidate its current presence via an organic and external growth strategy, with plans to add new sectors to its portfolio.

Previous funding
In July 2010, LBO Partners supported Rougnon's MBO with equity drawn from its CIC LBO Fund. The deal, understood at the time to be valued at €25-50m, saw the buyout house secure a majority stake in the business, according to unquote" data.

Under LBO Partners' wing, the environmental engineering business undertook a series of bolt-on acquisitions as it picked up electricity companies Fouassin, Boucheron and Bédier in 2013, and collective heating business Albasini in 2014.

As LBO Partners used its investment in Rougnon to support the wave of acquisitions, its stake in the business shrunk down from its initial majority to a minority shareholding, which will now be exited.

Rougnon refinanced a junior debt facility with a senior package provided by four banks in October 2014. The transaction allowed LBO Partners to recoup its initial investment via a €100m dividend recapitalisation.

Company
Founded in 1920, Groupe Rougnon is an environmental engineering firm. Headquartered in Vélizy-Villacoublay, it regroups 11 different companies that offer technical construction services including air conditioning, heating, power, plumbing, and sealing.

With a workforce of 550 in the Paris region, the business posted approximately €100m in revenues in 2014, up from €50m when it was acquired by LBO Partners in 2010.

People
Gontran Duchesne is deputy general manager at LBO Partners. EdRip was represented by Laurent Tourtois, Pierre-Yves Poirier, Thomas Duteil and Arthur Milliard.

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• Topics
• Buyouts
• France
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• France
• CIC LBO Partners
• Andera Partners
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