Vespa, Cathay back ATI buyout

Greg Gille
21 March 2016

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French GP Vespa Capital has taken a majority stake in the LBO of incinerators business ATI, with Cathay Capital and Perspectives et Participations co-investing.

The primary transaction marks the first investment from Vespa's second fund, which held its final close on £120m in January 2017. Following a similar strategy to its predecessor, which is currently in its divestment phase with three exits completed to date, the vehicle targets businesses valued in the €15-75m range.

Having secured a minority stake, Cathay Capital invested via its Sino-French fund. Launched in 2012, the vehicle typically deploys €5-15m per transaction.

The deal comes as former ATI manager and majority shareholder Philippe Berchon steps away from the business, having worked towards a succession plan for the past two years. New CEO Ernest Ibanez and the rest of the management team will hold a minority stake alongside the financial sponsors.

A banking pool comprising Crédit Agricole Centre Loire, Neuflize OBC, Crédit du Nord and Schelcher Prince Gestion provided financing for the transaction.

Company
Founded in 1930, ATI designs and manufactures cremation furnaces, waste incinerators and filtration systems. Its products are used for applications in hospitals and the management of animal and industrial waste.

Having grown at 20% per annum over the past 10 years, ATI generates a turnover of €25m and also operates a subsidiary in the UK. Exports make up 70% of its revenues.

People
Vespa Capital – Denis Leroy, Jean-Valmy Nicolas (partners).
Cathay Capital – Fabien Wesse (partner); Charles Bonnassieux (associate).

Advisers
Equity – ACA Nexia, Eric Chapus (financial due diligence); Advention, Alban Neveu, Eric Lesavre (commercial due diligence); DLA Piper, Xavier Norlain, Elodie Cavazza, Arielle Locoh-Donou, Maud Manon, Glenda Pereire-Robert, Guillaume Vallois, Charles-Antoine del Valle (legal, tax).
Vendor – Crédit du Nord, Stéphane Peterlini, Mathieu Venderotte (corporate finance); Pardo Sichel & Associés, Julien Sichel, Anne-Sophie Hebras (legal).