3i backs buyout of Etanco

05 Sep 2011

3i, and funds managed by 3i, have signed an agreement subject to customary conditions, to acquire a majority stake in Etanco, the French market leader in the design, manufacturing and distribution of building fasteners and fixing systems, from IK Investment Partners (“IK”). The management team remains committed to the business with CEO Ronan Lebraut re-investing alongside 3i and retaining a 25% stake in the company. Financial terms of the transaction were not disclosed.

Headquartered near Paris with 600 employees, Etanco is the leading designer, manufacturer and distributor of building fasteners and fixing systems in France. The company also has a strong presence in Belgium, Italy and Eastern Europe through its subsidiary Friulsider. Etanco provides a full range of 45,000 products grouped under four categories: waterproofing, roofing, safety and facades. This extensive product range enables Etanco to offer products that are adapted to meet specific market requirements and which meet environmental and European regulatory requirements.

Since IK acquired Etanco in 2008 in partnership with Ronan Lebraut from his family, IK has implemented a number of successful strategic initiatives to strengthen the company’s market position such as expanding its product offering, stream-lining operations to improve efficiency, and increasing the sales force. This has allowed the group to experience impressive and continued growth in sales and profitability throughout the financial crisis.  The company has significantly outperformed the market, demonstrating both the resilience and growth potential of the company and its business model.

3i’s investment in Etanco provides a platform from to accelerate the company’s growth and strengthen its market position, through consolidation of the market as well as developing new product ranges and increasing its customer base.  3i has extensive experience investing in the industrial sector and its global network will enhance Etanco’s ability to access new geographies.

Christopher Masek, Managing Partner, IK, said: “The investment decision was made in the challenging market of 2008. Our strong understanding of the company's dynamics as well as the extremely high potential and quality of the management team proved this to be the right decision. Under the mandate of IK and the management of Ronan Lebraut, the Group significantly outperformed the market every year confirming the resilience, the growth potential of the company and the validity of its business model. This is a classic investment for us and demonstrates our approach to working with a family business by improving its foundations and transforming it into a solid national leader with the potential for further growth.”

Ronan Lebraut, CEO, Etanco said: “With IK’s positive support, Etanco has grown significantly organically, allowing us to reinforce our leadership position in France and to improve our financial performance. We look forward to continuing our successful evolution by taking on a new stage of international development through a buy-and-build strategy for which we believe we are well poised with 3i.”

Remi Carnimolla, 3i Partner commented: “We have known Etanco, Ronan Lebraut and his team for over 3 years; we are pleased to be working in partnership with them to deliver our common ambition of internationalising the Group to transform it into a pan-European champion. 3i has extensive experience and a strong track record in helping leading companies expand across geographies and we are well placed to support Etanco’s international expansion strategy.” 

This transaction is subject to customary conditions including anti-trust approval.

Notes to Editors:

About IK Investment Partners
IK Investment Partners (“IK”) is a European private equity firm, having raised a total of EUR 5.7 billion, including EUR 1.7 billion in the latest fund IK2007. Since 1989, IK has acquired 77 European companies. The current portfolio encompasses 23 companies with a total turnover close to EUR 7.5 billion. IK invests mainly in mid-sized companies with strong cash flow and profit improvement potential, operating in established industries with fundamental underlying growth. For more information visit our website: www.ikinvest.com

About 3i
3i is an international investor focused on Private Equity, Infrastructure and Debt Management, investing in Europe, Asia and the Americas. Our competitive advantage comes from our international network and the strength and breadth of our business relationships.  These underpin the value that we deliver to our portfolio, shareholders and fund investors.  www.3i.com

About Etanco
Headquartered near Paris with 600 employees. Etanco is the leading designer, manufacturer and distributor of building fasteners and fixing systems in France. The company also has a strong presence in Belgium, Italy and Eastern Europe through its subsidiary Friulsider. Etanco provides a full range of 45,000 products grouped under four categories: waterproofing, roofing, safety and facades. www.etanco.fr