Ardian sells Novacap to Eurazeo et al.

Alice Tchernookova and Amedeo Goria
21 March 2016

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French private equity firm Ardian has sold its 96% stake in diversified chemicals business Novacap Group after a five-year holding period.

As part of the deal, Ardian will retain a minority stake. Following the transaction, the capital will be distributed as follows: Eurazeo will detain 67% of the capital, Mérieux Développement 9%, Ardian 18% and the management 6%.

As the new majority shareholder, Eurazeo invested €160m in equity for an enterprise value of €654m. An additional amount of up to €30m could be added in 2018 depending on the company's performance, the GP said.

Debt for the transaction represented €435m and the company will benefit from a credit facility of €90m to finance investments and external growth.

The deal comes shortly after Ardian sold its 46.7% stake in mid-March in another healthcare company – KOS, a residential care operator based in Italy. Ardian exited the group via a trade sale to Compagnie Industriali Riunite and F2i for €292m.

Previous investment
In January 2011, Ardian acquired a 96% stake in Novacap in an SBO through its AXA LBO Fund IV vehicle. The firm bought the business from Bain Capital following a Rothschild-run auction process. The transaction valued Novacap at €240m, according to unquote" data.

Bain acquired Novacap in November 2002 for €150m, carving out the European commercial and industrial activities division of Rhodia.

Company
Headquartered in Lyon, Novacap produces and distributes chemicals for the healthcare, pharmaceuticals, cosmetics and homecare markets. The group is divided into three business branches: mineral specialities, pharmaceuticals and cosmetics, and performance chemicals. It provides a range of products, including aspirin, paracetamol, ketamine, soda ash and sodium bicarbonate.

Founded in 2003, the group has 14 facilities around the globe and employs 1,550 staff. Novacap generated a €666.7m turnover with a €71.1m EBITDA in 2014.

People
Ardian – Dominique Senequier (chair).
Novacap – Pierre Luzeau (chair, CEO).
Eurazeo – Patrick Sayer (CEO).