19th Nov 2007 07:00
Press release Embargoed until 0700hrs on 19 November, 2007
Candover acquires Alma Consulting Group, the European leader in cost reduction and tax recovery services, from Apax Partners
Candover, a leading European buyout specialist, today announces that it hassigned an agreement to acquire Alma Consulting Group ("Alma"), the Europeanleader in cost reduction and tax recovery services, from Apax Partners SA andChequers Capital. This will be the eighth investment to be made from the ¢â€š¬3.5bnCandover 2005 Fund which will be 57% drawn-down following this acquisition.Equity funding is being provided by the Candover 2005 Fund. The management teamwill also be re-investing a significant proportion of their proceeds in the newequity structure. RBS, current agents and arrangers of the company's existingdebt financing, are underwriting additional mezzanine financing. Theacquisition is conditional upon competition clearance and is expected tocomplete before the year-end.Founded in 1986, Alma offers a wide range of cost savings services with anattractive value proposition based on a success fee approach. Alma helps itsclients recover excess social charges and tax payments, save money on generaloperating and administrative charges, as well as pensions and healthcare, andobtain innovation tax credits and R&D subsidies. Alma also owns Winter &Associƒ©s an actuary consultancy. The Group serves more than 10,000 corporateclients - including 60% of France's top 200 companies, some 35 of which areCAC40-listed. In addition to its market leading position in France, Alma hasoperations in Spain, Poland, Italy, Belgium, the UK and Israel, and employsover 1,000 people. In 2006, turnover was ¢â€š¬153m; in line with an average annualgrowth rate that has exceeded 20% per annum for a decade. Turnover for 2007should exceed ¢â€š¬180m.
Candover is backing a highly experienced management team led by Marc Eisenberg, founding Chairman and CEO, who has led the business through its 21 year history, focusing on both organic and acquisitive growth.
Commenting on the acquisition, Mr Eisenberg said:
"Our partnership with Apax Partners has been an extremely productive one,allowing us to strengthen and diversify our service offering in France as wellas promoting the international development of the business. We expectCandover's involvement at this stage in Alma'sdevelopment to be equallybeneficial. Whilst we continue to have very attractive growth opportunities inour domestic market, a core part of Alma's growth strategy is the increasinginternational expansion of the business, both via selective office openings andcomplementary bolt-on acquisitions. Candover's buy-and-build approach andexperience across Europe will be invaluable as we aim to replicate our domesticsuccess in other European markets."
Bertrand Finet, Director of Candover in France, said:
"Alma is well placed to continue to develop its market presence - both in itshome market and internationally. Complex and ever changing legal, tax andmarket environments, and a success-based fee model, make their proposition veryattractive to clients. We are backing a proven management team, led by Marc,which has already acquired and integrated eight companies into the group withinthe last three years. It's a unique business, supported by a 20 year trackrecord, proprietary research and databases and excellent long term clientrelationships."
Monique Cohen, Partner at Apax Partners, said:
"We have been very pleased to back Marc Eisenberg and his management team.During the period of our ownership, Alma has enjoyed exceptionalgrowth, bothorganically and through acquisitions, brought about by its professionalism andits capacity to innovate and develop new product offers. We remain confidentabout Alma's ability to continue its successful growth strategy."Candover was advised on the transaction by UBS (M&A), Gibson Dunn & Crutcher(legal), Deloitte (financial due diligence), and Taj (tax structuring).Management were advised by White & Case and LSL (legal) and LSK (management).Apax Partners were advised by Weil Gotshal & Manges (legal).
Note: Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner of the Candover 1997 and 2001 Funds and as Manager of the Candover 2005 Fund.
For further information, please contact:
Candover +33 (0) 1 58 36 43 50 Bertrand Finet Apax Partners +33 (0) 1 53 65 01 35 Agathe Heinrich Alma Consulting Group +33 (0) 1 41 49 41 03 Marc Eisenberg Keima +33 (0) 1 56 43 44 60 Alix Hƒ©riard Tulchan Communications +44 (0) 20 7353 4200 Susanna Voyle/Peter Hewer Note to editors:CandoverCandover is a leading provider of private equity for large European buyouts. Founded in 1980, Candover has invested in 133 transactions with a value ofalmost ¢â€š¬40 billion. Investment in deals by Candover is provided in two forms,from Candover Investments plc, a publicly quoted investment trust, and fromfunds managed by Candover Partners Limited, a wholly owned subsidiary. In November 2005, Candover raised the ¢â€š¬3.5bn Candover 2005 Fund which has madeseven investments to date: the $565m buyout of Capital Safety Group, theleading global player in the fall protection market, the buyout of ParquesReunidos, a leading operator of regional attraction parks, the buyout ofFerretti, a leading manufacturer of high performance luxury motor yachts, the ¢â€š¬1bn acquisition of Hilding Anders, a leading European mattress and bedsmanufacturer, the acquisition of UK mail services company DX Services plc andmerger with Secure Mail Services, the ¢â€š¬450 million buyout of Norwegian cable TVoperator UPC Norway, and the ¢â€š¬480 million buyout of EurotaxGlass's Group, aleading provider of automotive data and intelligence services.The Candover Group has five offices in London, Paris, Dƒ¼sseldorf, Madrid andMilan. Candover Partners is authorised and regulated by the Financial ServicesAuthority in the UK.
For more information, see www.candover.com
Apax Partners
Apax Partners SA is a leading private equity firm in France. With more than 30 years of investing experience, Apax Partners provides long-term equity financing to build and strengthen world-class companies.
Funds managed by Apax Partners SA exceed ¢â€š¬2 billion. These Funds invest infast-growing companies across Apax' sectors of specialisation: Tech & Telecom,Retail & Consumer, Media, Healthcare, Business & Financial Services.
For more information visit: www.apax.fr
Alma
Alma Consulting Group is an operational advisory services firm founded in France in 1986 by its Chairman and CEO Marc Eisenberg, and is engaged in identifying and generating tangible savings for businesses. It occupies a market leading position in its domestic market. Alma also owns Winter & Associĩs an actuary consultancy.
Its expertise covers six major areas in terms of identifying and reducingcosts: lowering social costs, tax related costs, operating costs, innovationfinancing, insurance and pension costs and cash management. Alma operates asuccess-based fee model, billing its clients only for cost saving achieved. Thecompany currently has over 20 products and has a proven ability to generate newproducts and services on a regular basis.Alma operates in seven countries and employs 1,000 people. In 2006, turnoverwas ¢â€š¬153m; in line with an average annual growth rate that has exceeded 20% perannum for a decade. Turnover for 2007 should exceed ¢â€š¬180m.
For more information visit: www.almacg.com
Ends.
CANDOVER INVESTMENTS PLCRelated Shares:
CDI.L