PPM Ventures, the private equity arm of UK insurance group Prudential, has backed a management buyout of industrial maintenance business Prezioso from Barclays Private Equity France.
PPM has agreed to pay in excess of E170m for the France-based business, which generated over half of its E175m turnover in 2001 outside France and employs over 3000 staff. The company’s principle areas of operation are in the field of anticorrosion, fire protection and insulation.
The deal represents a strong exit for Barclays Private Equity France, which completed the first MBO from the founder of the business for E59m in December 2000. On completion of the latest transaction, the management team led by CEO Jacques Prezioso and Philippe Goutagny, executive vice-president, will take a 20 per cent share of the company’s equity.
Jean-Lou Rihon, a director of PPM Ventures said Prezioso was “a well managed and fast growing international business. It operates in the business services sector which is one of PPM Ventures’ core areas of focus.”
The transaction is PPM’s sole acquisition in 2002. It also achieved a successful exit from Moliflor Loisirs, its casino buy and build investment also based in France. Legal & General Ventures and Royal Bank Private Equity paid in excess of E400m for the business, which PPM had acquired three years earlier for around E80m. Last year the firm completed a series of buyouts, including a £55m public-to-private transaction at UK fashion retailer Oasis.
Senior debt facilities for the Prezioso deal were underwritten by IKB, Paris branch. Mezzanine capital was provided by Indigo Capital.