Weinberg acquires Butler's 66% stake in Adit

José Rojo
30 October 2015

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Weinberg Capital Partners has bought a 66% stake in French business intelligence service Adit, allowing Butler Capital Partners to exit four years after buying the company from the French state.

In parallel with Weinberg's purchase, the French government will transfer to BPI France part of the 34% stake it retained in Adit since the company's privatisation in 2011.

According to Weinberg partner Jérôme Louvet, the SBO was financed via the GP's WCP#2 fund. Having been launched with a €300m target in January 2012, the buyout vehicle held a €160m first close in June that same year and is understood to have concluded fundraising on around €200m in 2013.

Enterprise value for Adit remains confidential, but WCP#2 targets companies valued in the €20-200m region.

Speaking to unquote", Louvet explained Weinberg had followed Adit prior to the SBO, as its CEO Serge Weinberg was personally acquainted with Adit's peer Philippe Caduc.

Having learned of Butler's exit plans, an approach was made to both the seller and the company in early 2015. Edmond de Rothschild Corporate Finance was then mandated to set up a limited auction process for Adit that included several funds. Weinberg won exclusivity by late July, Louvet said.

With Weinberg as new majority shareholder, Adit expects renewed interest for its business intelligence services as the market grows in the coming years, with plans to sign up new international clients.

Debt
Weinberg's acquisition was supported with a unitranche facility supplied by CM-CIC's private debt arm.

Previous funding
In 2001, eight years after Adit was set up by the French state, a decree was passed turning the business into a public limited company and paving the way for a privatisation.

Adit's move to private hands was delayed until 2010, when the French Ministry of Economy announced it intended to divest a 66% stake. In 2011, Parisian GP Butler was chosen as the acquirer and a sale was agreed, leaving the remaining 34% to the French state.

Although Butler's investment was not disclosed at the time, the GP typically writes €10-50m cheques for companies with revenues in the €50-500m range. Under the firm's four-year tenure, Adit has grown via bolt-ons including French export and international representation specialist Salveo, scooped up in 2013.

Company
Founded in 1993 by the French state and privatised in 2011, Adit is an agency specialising in economic and strategic intelligence policy. Headquartered in Paris, the company operates offices in Strasbourg and is present on all continents via a 700-strong workforce, 200 of whom are analysts. The agency most recently posted €30m in turnover and claims to have seen a "strong" profitability boost over the past five years.

People
Weinberg was represented by partner Jérôme Louvet, deputy director Baptiste Fournier and investment manager Anthony Guillen. Philippe Caduc is currently CEO at Adit.

Advisers
Equity – Advance Capital (Financial due diligence); Indefi (Commercial due diligence); Fidal (Legal, tax); De Pardieu Brocas Maffei (Legal).
Vendor – Edmond de Rothschild Corporate Finance, Christophe Marchand, Emmanuelle Dittmer, Jonathan Jacquin, Alexandre Aron-Brunetière (Corporate finance); BDGS Associés, Antoine Bonasse, Laure Varachas, Alexandre Debaudre (Legal); Eight Advisory, Pascal Raidron, Fabien Thieblement, Côme Gentil, Lionel Gérard (Financial due diligence); PwC, Cécile Debin, Bernard Borrely, Anne-Valérie Attias Assouline (Legal, tax, environmental due diligence).