Baring European Private Equity has announced the completion of a leveraged MBO of France’s leading scaffolding companies, Entrepose Echafaudages and Mills. The two companies were acquired from Tractebel, the energy division of Suez, for an undisclosed sum.
It has formed a new company, Scaff’ Holding, which will capitalise on the growing market in France as well as exploring growth opportunities in other European markets. Turnover for the companies in 2001 was around E80.6m, giving the combined group a market share of 20 per cent in France.
The Baring European Private Equity Fund invested alongside TCR Industrial Managers, a leading French private equity firm. On completion of the transaction, the financial investors together control 98 per cent of the equity with management controlling the remaining stake. Baring PEP confirmed that the equity/debt ratio was conservatively balanced at 40:60.
Fortis Bank provided Baring with senior debt for the transaction, with PriceWaterhouse Coopers conducting due diligence. Legal advice was provided by Moquet Borde & Associés.
Baring Private Equity Partners, part of the ING Group, manages E2.3bn worldwide with the Western European team managing over E300m. The Baring European Private Equity Fund invests in capital growth situations in middle market companies across Europe, taking both minority and majority equity positions in support of seasoned management teams.