Axa PE buys Trescal in €250m SBO

Greg Gille
17 June 2013

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3i stands to double its money in a little less than three years after agreeing to sell French measurement services specialist Trescal to Axa Private Equity for around €250m.

Axa PE has been granted exclusivity to acquire 82% of Trescal, with management retaining the remaining 18% stake. The deal would value the business at around €250m, or around 10x EBITDA. It remains subject to the signing of a definitive agreement and customary approval by competition authorities.

3i bought a majority stake in Trescal in 2010, alongside TCR Capital as a minority shareholder. 3i is set to make €71m from the sale, a 2x multiple on the original €36m invested in the business.

Axa PE stated it had been on a lookout for an investment in the testing inspection and certification space. It identified Trescal as an attractive opportunity a few months ago and intends to support the company's buy-and-build strategy.

Debt
Bank of Ireland, HSBC and Natixis will act as mandated lead arrangers and bookrunners to arrange and underwrite a senior debt package for the transaction.

Previous funding
3i and TCR bought their stakes in Trescal at the end of 2010 – the SBO from Astorg Partners valued the business at €110m and saw 3i secure a 64% stake. Société Générale and Crédit Mutuel Arkéa arranged senior debt facilities to finance the acquisition. AXA Mezzanine also provided mezzanine funding. The debt-to-equity ratio was set at 1:1, according to unquote" data.

Since then, Trescal has completed four bolt-on acquisitions. Its turnover grew from €110m to €157m, while EBITDA more than doubled from €11m to €23m.

Company
Based in Rungis, Trescal provides calibration, equipment management and IT solutions. It targets the telecommunications, automotive, defence, electronics, aerospace, energy, medical and chemical sectors. The firm employs 1,500 people across 50 laboratories located in 16 countries worldwide.

People
Thibault Basquin, Yann Bak, Arnaud Tardan and Edouard Level worked on the deal for Axa PE. 3i was represented by Xavier de Prévoisin, Rémi Carnimolla and Anne Leforestier. David Robin led the transaction for TCR.

Advisers
Equity – Canaccord Genuity, Nadim Barouki, Nicolas Royer, Nicolas Kassab, Myriam Hosri (M&A); Latham & Watkins, Thomas Forschbach, Gaëtan Gianasso, Anne-Sophie Silvera-Darmon, Xavier Farde, Lionel Dechmann, Olivia Rauch-Ravise, Mathieu Denieau, Frédéric Pradelles (Legal); AT Kearney, Jean Boschat, Charles David (Commercial due diligence); 8 Advisory, Pascal Raidron, Stéphane Vanbergue, Cyrille Palitzyne (Financial due diligence); Arsène, David Chaumontet, Charlotte Perreau (Tax); Marsh, Humbert d'Autichamp (Insurance due diligence).
Vendors – Clifford Chance, Marianne Pezant, Gilles Lebreton (Legal).
Company – Canaccord Genuity, Nadim Barouki, Nicolas Royer, Nicolas Kassab, Myriam Hosri (M&A); STC Partners, Delphine Bariani (Legal); Delaby & Dorison, Emmanuel Delaby (Legal).
Debt – Gide Loyrette Nouel, Eric Cartier-Millon (Legal).