Following its acquisition of a majority interest in Babeau Seguin Group at the end of 2011, NiXEN, together with the Group’s management, announce the completion of the Group’s first external growth

Following the acquisition by NiXEN in December 2011 of a majority interest in Babeau-Seguin Group, France’s 5^th-ranking constructor of built-to-order single-design detached homes, the Group completes the acquisition of Maisons et Jardins, based in Vichy in east-central France and generating annual sales of around 100 houses, while Babeau Seguin Group generates over 1,500.

Active in a local market with a strong potential for consolidation, Maisons et Jardins has a complementary profile with that of Babeau Seguin Group notably

• a similar product-base towards first-time buyers,
• a network of local agencies that fits well with the existing Babeau Seguin platformin Auvergne,
• regular sales growth and recurring profitability in recent years and
• ahigh-quality management team committed to pursuing the development of Maisons et Jardins within the Group. With Maisons et Jardins, the Group generates a combined turnover of nearly €115 M.

Bruno Babeau, the Group’s CEO said: “Maisons et Jardins management had a very entrepreneurial and successful track record. The operation doubles the Group’s presence in the Auvergne region, which has strong potential for development. Following its integration into Babeau Seguin Group, Maisons et Jardins should be well-positioned to consolidate its regional presence, under the guidance of its current management team, while taking full advantage of the synergies offered by a group like Babeau Seguin.”

 

“This first acquisition follows the closing of the Babeau Seguin operation completed in December 2011”, says Pierre Rispoli, Managing Director of NiXEN Partners, pointing out that the “the financial scheme features a reasonable debt ratio” and that “the Group maintains sufficient cash levels to support development through external growth”.

Conducted by NiXEN, the acquisition of Babeau-Seguin Group has involved the existing management, which has significantly reinvested, historic financial investors (Siparex, Carvest and Somfy Participations), Pechel, Avenir Entreprises, the Group’s historic bank partners and Idinvest Partners. The Group’s historic financial partners have demonstrated a strong commitment in re-investing in this new transaction alongside NiXEN and the management team, conforted by the Group’s track record showing resilience, profitable growth as well as a cautious financial package. 

New external growth operations are currently being examined, the Group’s CEO Bruno Babeau stating clearly at the time of the acquisition that “backed by NiXEN’s significant know-how in terms of consolidation strategy through acquisitions coupled with significant financial resources, we are looking resolutely towards speeding up our ambitious development project”.

 

Contributors:

• NiXEN: Pierre Rispoli, Johann Le Duigou, Frédéric Mimoun
• Pechel: Bertrand Hainguerlot, Alain Cochenet
• Siparex: Bertrand Rambaud, Pierre Bordeaux-Montrieux, Nathanaël Martin
• CIC: Franck Chevreux
• Avenir Entreprises: Jacques Solleau, Alexis Mahieu
• Crédit Agricole Régions Investissement: Hans de Breda, Arnaud Hilaire
• Somfy Participations: Wilfrid Le Naour

Financing:

• Idinvest Partners (Mezzanine): François Lacoste, Nicolas Nedelec
• Crédit Agricole Corporate and Investment Bank(Senior Co-Arranger): Annie-Laure Servel, Pierre Orsini, Olivier Malard
• Banque CIC Est (Senior Co-Arranger): Olivier Tochon
• Caisse Régionale de Crédit Agricole Mutuel Champagne Bourgogne / de Franche Comté / Crédit Lyonnais (Senior Bank): Cyrille Decker, Mickael Brelot
• Banques Populaires Franche-Comté (Senior Bank): Rémy Bertrand
• Caisse d’Epargne Besançon (Senior Bank): Sylvain Paquelier
• Banque Kolb (Senior Bank): Alain Vidal

Buyers Advisors:

• LEK (Strategic and Market Due Diligence): Arnaud Sergent, David Danon-Boileau, Elina Ashkinazi-Ildis
• Ernst & Young (Accounting and Financial Due Diligence): Pierre Bourgeois, Sébastien Huet, Olivier Thielemans
• De Pardieu Brocas Maffei (Corporate, Competition, Legal, Tax  and Social Due Diligence) : Guillaume Touttée, Alexandre Blestel, Alexandre Lecomte, Marine Nossereau, Jérôme Mas
• Marsh (Insurance Due Diligence): Jean-Marie Dargaignaratz
• Mandel Partners (Fundraising Facilitator): Bertrand le Galcher Baron, Fabrice Perez

Vendors Advisors:

• Ratheaux: Gaetan de la Bourdonnaye
• SECC: Denis Gouaille, Vincent Roux
• Grant Thornton (Individuals Advisors): Eric Pierre, Alexandra Bois