LFPI, BPI France buy Pénélope from Bridgepoint

Greg Gille
16 March 2016

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French private equity group LFPI has acquired a majority stake in hospitality staffing business Pénélope from Bridgepoint.

State-backed investor BPI France invested alongside LFPI to secure a minority stake, while the company's management team also bought a holding in the buyout.

LCL, BNP Paribas and Societe Generale arranged a senior debt package to finance the transaction, with participation from Banque Palatine. BPI France and LFPI also supplied mezzanine funding via their dedicated junior debt arms.

The two investors will look to continue supporting Pénélope's growth strategy, which will include a number of add-on acquisitions to strengthen the group's various offerings.

Previous funding
Edmond de Rothschild Capital Partners (EdRCP) took a majority stake in French recruitment agency Pénélope alongside management in September 2010. LCL and Societe Generale arranged a senior debt package worth around 3.8x the company's EBITDA at the time. IFE Mezzanine also provided mezzanine funding to finance the acquisition.

Pénélope acquired French support services business CC Team Aurore from its parent company Dynapost in 2011. EdRCP injected less than €5m in fresh equity to finance the transaction. In addition, LCL provided senior debt and Pénélope made use of an expansion capital facility negotiated at the time of the buyout by EdRCP.

Bridgepoint acquired EdRCP in 2014 and continues to manage the firm's legacy investments.

Company
Founded in 1973, Pénélope is an agency recruiting hosts and hostesses for companies and professional events. It also provides staffing for operational marketing and telephone marketing purposes. The company generates a €110m turnover, against €100m at the time of the previous buyout in 2010. Headquartered in Paris, Pénélope operates 37 agencies across France.

People
LFPI – Olivier Lange, Brice Carlot.
BPI France – Ménelé Chesnot.
Bridgepoint – Bertrand Demesse, Thomas Moussallieh.

Advisers
Equity – Easton Corporate Finance, Philippe Croppi (corporate finance); ACA Nexia International, Hervé Krissi, Thierry Guelfi (financial due diligence); HPML, Thomas Hermetet, Anna Gassner (legal); Allen & Overy, Jean-Christophe David, Tristan Jambu-Merlin (legal).
Vendors – Natixis Partners, Jean-Baptiste Marchand, Benjamin Giner (corporate finance); Hoche Avocats, Jean-Luc Blein, Eric Quentin, Audrey Magny (legal, tax); KPMG, Axel Rebaudières, Blandine Mugnier (financial due diligence); LEK, Rémy Ossman, Stéphane Claquin (commercial due diligence).