Primo (France) - Nov 2007

unquote
01 November 2007

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As part of a management buy-in valuing the company between €7-15m, Initiative et Finance has acquired 73% of Primo, a company which cuts and wraps fresh products for supermarkets. The financial sponsor, which invested between €2-5m in equity, proactively sought out a new CEO, who took a 5% stake in the business. The company’s former CEO, who bought out Primo in 1987, was convinced to re-invest, and therefore retains 22% equity. Banque Palatine, one of the company’s existing banks, was mandated as the vendor’s corporate finance advisor, and leads the underwriting of a single tranche of amortising debt to support the new transaction, alongside Caisse d’Epargne Côte d’Azur (CECA).

Company

Founded in 1984 in Cuers, Primo cuts and packages hams and cheeses for sale in supermarkets. In the context of a general trend towards counter closures in supermarkets, the business is hoping to see its turnover increase by 10-15% annually, from €12m anticipated for the year ending 31 March 2008. The efficiency of processes will be improved and through negotiations with individual supermarkets nationwide geographic coverage will be extended. An international expansion is reportedly also being considered in the longer term.

People

Thierry Boghossian and Grégoire Bouvier worked on the transaction for Initiative et Finance. Brigitte Richard and Alain Jaime prepared the debt for Banque Palatine, while Jean-Luc Pecorini did so for CECA. Eric Lévy is Primo’s incoming CEO.

Advisers

Equity - Abelia Consulting, David Parquet, Jean Charles (Financial Due Diligence)Equity - Apave, Pierre Delrieu (Environmental Due Diligence)Equity - Assurances Thiebaud SA, Emanuel Coutelle (Insurance Due Diligence)Equity - Lamartine Conseil, Claire Seigné, Fabien Mauvais (Legal)Vendor - Banque Palatine, Alexandra de Limairac, Thierry Millet (Corporate Finance)

Sourced from: France unquote" 88 (Feb 2008)