FRANCE - PE houses dig for French gold

Fay
20 February 2006

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CDC Entreprises has just acquired France’s largest chain of jewellers Marc Orian for an estimated EUR 140m, according to press reports. The Paris-based newco, Financière M.O, was taken private by Crédit Lyonnais Asset Management, now Crédit Agricole Private Equity (CLAM PE), in 2001. Its Equitis LBO fund, acquired a total of 1,355,662 shares at a price of EUR 75 per share, representing 98.48% of the capital. Apart from the equity invested by CLAM PE, funding for the deal in the form of senior debt was provided by Crédit Agricole Indosuez. Alongside Euromezzanine it also structured a EUR 15m mezzanine tranche.

Shares were also sold by IDI-EURIDI and SI Finance, which originally backed the buyout of the company in 1993 via the newco Orveillan and retained diluted shareholdings once the company had floated on the Second Marché in 1996. The CEO of Marc Orian, Sylvain Krief, and the management team also invested and took a 31% interest in newco, while CLAM PE held a 69.11% equity stake.

Furthermore, Apax Partners France is in the process of selling Histoire d’Or, the country’s second largest jeweller, for a sum in excess of EUR 200m. Advent International, PPM Capital and Sagard are all allegedly bidding in the auction, which Lazard has been mandated to run.