Eurazeo PME acquires MK Direct from Alpha PE

Eurazeo PME, the small- and mid-cap arm of French listed investor Eurazeo, secured a 55% stake in the buyout in exchange for a €49m equity and equity-like investment. The transaction values MK Direct at €102m and is expected to complete in May.

Financing for the buyout was provided by MK's historical lenders - Banque Palatine, CACIB, and Societe Generale - as well as debt funds Artemid, Muzinich and Lyxor.

The group is now aiming to accelerate cross-channel distribution in France and will also look to expand across Europe, through organic growth as well as bolt-ons.

Previous funding
Alpha bought Françoise Saget Linvosges (now MK Direct) from Activa Capital for an undisclosed amount in 2010. Alpha invested through its Alpha Private Equity Fund 5 vehicle, a €750m mid-cap fund raised in 2006.

Activa had backed the spin-off of Françoise Saget from the Yves Rocher group in 2006, in a deal valued in the €25-50m range. The company merged in 2007 with Linvosges, an upscale household linen designer and retailer, following a bolt-on acquisition arranged by Activa, which consequently held 70% of the group.

Under Activa's ownership, turnover for the business went from €48m to €130m. The private equity firm reaped a 3.5x return on its investment following the exit.

Since then, MK has seen its revenues increase to €186m in 2015.

Company
Established in 1923 and 1982, respectively, Linvosges and Françoise Saget specialise in home linen. The group's products are available through catalogue, a web shop and a national network of boutiques.

In addition to France, MK Direct operates in Germany, Belgium and Switzerland. It employs 500 staff and serves 5 million customers.

People
Eurazeo PME - Olivier Millet (chair).
MK Direct - Marie-Françoise Kerhuel (CEO).

 

 

 

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