Groupe Grand Sud (France) - Dec 2007

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01 December 2007

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OFI Private Equity has supported the €24m buyout of Groupe Grand Sud, a distributor of gadgets and humorous gifts. The private equity firm invested €12m in both equity and mezzanine, in exchange for a 64% stake. The deal was sourced through the company’s incoming CEO, who after a six-month hand over, contacted at least three private equity firms. OFI was reportedly chosen because of the simplicity of its equity and mezzanine financing capability. A pool of five banks will provide seven- to eight-year operational debt, which will be raised in correlation with the opening of the company’s new retail points. The deal means an exit for Viveris Management, BNP Paribas Développement, Sofipaca and some private individuals, which invested growth capital over a period of five years.

Company

Marseille-headquartered Groupe Grand Sud distributes a range of gifts, including t-shirts, stationery, jewellery and toys through its brand Soho. The company has 140 retails points in France, 42 of which are fully-owned and 98 franchised. The business intends to reorganise its supply logistics, IT and human resources, and aims to open three or four new franchised shops every year. With more than 300 employees, Groupe Grand Sud recorded sales of approximately €28.3m in the year to March 2007, a figure expected to double within five years.

People

Olivier Millet and Erwann Le Ligné worked on the transaction for OFI Private Equity. Christophe Barnoin, formerly the head of parapharmacy chain Parashop, is Groupe Grand Sud’s CEO.

Advisers

Equity - Cabinet Galtier, Paul Jacques Sampatrou (Other Due Diligence)Equity - Constantin & Associés, Anne Ducoin, Olivier Thomas (Financial Due Diligence)Equity - De Pardieu Brocas Maffei, Jean-François Pourdieu, Thibaut Caharel (Other Due Diligence)Equity - Ernst & Young, Marc Bisserie, Sophie Souchon (Other Due Diligence)Equity - Gatienne Brault et Associés, Caroline Schoff, Gatienne Brault (Legal)Equity - International Risk Management Company, Jean-Hughes Bordes (Insurance Due Diligence)Equity - L’inventoriste, Michel Royer (Other Due Diligence)Equity - LMC, Guillaume Marchais (Other Due Diligence)Management - Broadmark, Lina Ismail (Corporate Finance)