Chequers Capital, the French private equity firm that grew out of the French buyout team at Charterhouse SA, has agreed to acquire Eurofarad, the French high-technology components manufacturer.
Chequers, which closed its first fund on E300m, significantly above the original target of E200m, in October 2002, reached agreement with the two family owners of Eurofarad in late November. The firm is backing management at the business, which manufactures capacitors, filters and potentiometers for the aerospace, medical and defence industries.
The deal is subject to approval by the French anti-trust authorities, which are expected to review the transaction before the end of the year. Chequers Capital said it was not permitted to disclose further details of the transaction until the deal is approved.
Eurofarad is the European market leader in its sector, reporting turnover last year of E55m and EBIT of approximately 20 per cent.
The deal is the eighth transaction announced by Chequers since the fund was raised last year and the firm has now invested one third of the fund’s capital. Many of the Chequers team, led by managing partner Denis Metzger, were formerly with buyout firm Charterhouse SA, but set up their own operation to focus on opportunities in France after buying themselves out last year from HSBC-CCF.
The fund focuses on deals ranging from E30m to E200m in size across a range of sectors excluding technology and real estate. Chequers Capital looks to invest in mainstream, traditional businesses that have solid cashflows.
Earlier this week, the firm announced an investment in French industrial components manufacturer Legris Industries as part of a public-to-private transaction from the Premier Marche of Euronext Paris.