Argos Wityu acquires majority stake in Groupe Fedd

According to its website, Argos Wityu acquires majority stakes in companies that have a turnover of EUR 20m-600m, investing EUR 10m-100m in each one. The GP manages EUR 1bn in funds. Karol Kroupa, a partner at Argos Wityu, confirmed this acquisition falls in the aforementioned range.

The GP is currently investing via Argos Wityu Mid-Market VIII, which was registered in March 2020. The fund invests in small and mid-market buyouts involving European companies, according to Unquote Data. The vehicle acquired majority stakes in Schenk Tanktransport, a Netherlands-based transportation service, earlier this year in August; and in Julhiet-Sterwen, a France-based business support service, in September 2021. Speaking to Unquote, Kroupa said: "Our LP base is very international. We have LPs in North America, Europe and our home countries." He further confirmed EIF is an LP.

Kroupa told Unquote: "We have a high number of potential targets lined up, which is linked to our pan-European presence. We are present in eight different countries and are interested in targets like Groupe Fedd. Specifically, companies with family management. This makes our position unique. We are looking for situations in which we can focus on growth and help the businesses get to the next level, where typically the prior ownership was not as strong, or had reached a limit on what it can fund. We also look for companies that no longer have the means to grow or expand geographically, or are in a situation where a corporation has decided to not support the business's growth anymore. We aren't focused on leveraging, we are more focused on liberation and boosting historical growth."

Kroupa further added that the GP will make more buy-and-build acquisitions, and will approach this in two ways: "The first direction is to aim for a higher market share in the same areas that Fedd operates today to provide customers with more services, or to attract new customers. The second direction is about external growth and addressing new verticals, geographies and new customers. There are huge long-term aspects to consider in the customer supply chain relationships, as it's based on trust, so often it's difficult to grow a business organically as customers have trusted suppliers. Acquisitions might be a better way to get there."

The GP's seventh fund, Euroknights VII, held a final close in November 2017 on its EUR 520m hard-cap. The fund focused on European small-cap and mid-market buyouts, according to Unquote Data.

Company
Groupe Fedd was founded in 1980 and has four sites in France, in the Dordogne, Haute-Garonne and Corrèze. The group caters to the entire value chain of electronic products, including manufacturing, repair, maintenance, co-design, prototyping and R&D. The group's companies include Fedd, a design entity; Phenix Électronique, a prototypes and aerospace manufacturer; Team 31, a rapid prototypes creator; Leroy Automation, which designs and manufactures control and command systems; and DMAI, which manages the IT resources for the aforementioned companies.

According to a press release, the group posted a consolidated turnover of around EUR 50m in 2020. The GP confirmed that the group has grown organically by approximately 10% per annum on average over the last 10 years, excluding the Covid years 2020 and 2021.

The group has appointed a new chief executive, Bruno Picquart, who was formerly the senior vice-president of Safran Aircraft Engines.

People
Argos Wityu – Karel Kroupa (partner); François Becque (investment manager) Marc Faucon, Bilel Oumheta (analysts).
Groupe Fedd – Bruno Picquart (CEO).

Advisers
Equity – McDermott Will & Emery (legal); Arsene Taxand (legal); Marsh (legal); Kint Partners (legal); PwC (M&A due diligence); EY (financial due diligence); Arthur D Little (strategic due diligence).

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• Buyouts
• Switzerland
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• Argos Wityu
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