Eras (France) - Nov 2007

unquote
01 November 2007

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Siparex has invested €2.5m in industrial engineering group Eras, as part of an owner buyout valuing the company between €10-30m. The private equity firm took a minority interest, while the company’s CEO retained majority control. Management also invested as part of the transaction. This deal was sourced through the CEO’s wealth management adviser, who ran a small selection process attracting four or five private equity bidders. Banque CIAL led a group of banks comprising Crédit Agricole de Franche Comté, Fortis Banque and Banque Martin Maurel to provide a debt package of less than EUR 3m. The debt included an A-tranche for two-thirds of the value, and a B-tranche for the remainder.

Company

Lyon-based Eras provides design and project management services in connection with new installations, revamping, capacity upgrades, extensions, compliance, qualification, shutdowns, dismantling, and other operations affecting industrial plants. The company, which has 12 offices employing around 300 staff, has become active in sectors involving large-scale investments, such as energy, pharmaceuticals, agrifood, biotechnology and metallurgy. The company’s clients include Air Liquide, Novartis, Arcelor Mittal and Areva. Eras has seen its turnover increase by 30-35% annually for the past three years, to reach just under €29m in 2007, with profitability higher than the sector’s average. A target of E50m within two or three years has been suggested. Eras hopes to grow both organically and through acquisitions of businesses with complementary expertises and geographies, in France or abroad. One strategic acquisition is currently being finalised.

People

Bertrand Rambaud, Pierre Bordeaux Montrieux and Florent Lauzet worked on the transaction for Siparex, while Marcel Michel arranged the debt for Banque CIAL. Yves Povey is Eras’ chairman and CEO.

Advisers

Equity - Advance Capital, Arnaud Vergnole (Financial Due Diligence)Equity - Cabinet Ratheux, Gaëtan de (Other Due Diligence)Equity - Capstan, Daniel Palfroy (Other Due Diligence)Equity - PricewaterhouseCoopers, Didier Sidois (Other Due Diligence)Equity - Requet Chabanel, Cécile Rousset-Gallea, Thierry Gateau (Legal)

Sourced from: France unquote" 88 (Feb 2008)