VULCANIC CONTINUES ITS GROWTH STRATEGY

VULCANIC CONTINUES ITS GROWTH STRATEGY

Paris, October 17, 2016 - Qualium Investissement and Future French Champions announce the takeover of Vulcanic, a European specialist in electrical heating and cooling systems for industrial applications, from Abénex and its partner Cathay Capital.

Qualium Fund, managed by Qualium Investissement, holds the majority of the Group’s capital alongside Future French Champions and the executives and managers of the company who reinvest in the transaction.

Founded in 1973 and based at Neuilly-sur-Marne in France, Vulcanic is one of the world leaders in the design and manufacture of electrical heating and cooling systems for industry. The Group has built up a diversified customer base of more than 30,000 customers and an impressive portfolio of top-level references, which rose Vulcanic to the status of globally recognized expert in its industry. The Group employs 600 people and owns eight industrial plants in Europe (France, Germany and Spain) as well as operations in other European countries, Asia and the Middle East.

Since its acquisition by Abénex in 2011, Vulcanic’s management has strongly developed the business of large engineering projects’ management for petrochemical and energy production clients while continuing to strengthen its position in each of its other core businesses.

In particular, Vulcanic, with support from Abénex and Cathay Capital, successfully started operations in China with a local partner in 2016. Qualium Investissement and Future French Champions will back Vulcanic’s continued expansion through both organic growth and targeted acquisitions in Europe and the rest of the world.

Christian Schott, Chairman of Vulcanic, stated: “We are very pleased to be entering this next phase of our international expansion in partnership with Qualium Investissement and Future French Champions. Continuing on from our achievements over the past five years with Abénex, the Vulcanic group plans to strengthen its positions in regions with strong growth potential.

Jean Eichenlaub, Chairman and CEO of Qualium Investissement, said: “Vulcanic still has significant development potential based on organic growth abroad, particularly in China, South-East Asia and the Middle East, and through acquisitions, with many opportunities already identified. I am convinced that the Qualium PME international network will contribute to the Group’s successful expansion”.

Jacques Pancrazi, Managing Director of Qualium Investissement, explained: “We were attracted by the excellence of Vulcanic’s management team, who we have known for a long time, and by the management’s entrepreneurial vision. We are delighted to be involved in the Group’s next expansion phase and to support it in future market consolidation”.

Future French Champions declared: “We are delighted to be accompanying Vulcanic in this next stage in its international expansion and intend to provide active support.

Abénex partner Antoine Schouman added: “Vulcanic combines top-level technical standards with a strategy that places the customer at the heart of its business focus. We are proud to have supported Christian Schott and his team in expanding the Group internationally, positioning it as a major player in Asia and the Middle East in addition to its historic presence in European markets. Besides its capacity for organic growth, Vulcanic is also a natural consolidator in its market as was demonstrated by the acquisition made in China this year. We wish the management and the new shareholders every success in continuing along this path.


Buyers:

Qualium Investissement: Jacques Pancrazi, Bastian Emery-Béziers

Future French Champions (CDCIC): Antoine Emmanuelli, Laurent Dethomas

Buyer advisers:

  • M&A legal adviser, financing, legal, tax and social due diligence: Willkie Farr (Gabriel Flandin, Elise Carrera, Xavier Nassoy, Stanislas Curien, Igor Kukhta and Grégoire Dumazy)
  • Strategic due diligence: ADL (Vincent Bamberger, Eric Kirstetter and Florent Nanse)
  • Financial due diligence: KPMG (Axel Rebaudières and Paul Charlet)
  • Environmental due diligence: ERM (Jérôme Rathle)

Advisers to the Management:

  • Legal advisers: Delaby & Dorison Avocats (Emmanuel Delaby, Florian Tumoine, Alexandre Gaudin and Jean Koechlin)

Vendors:

Abénex: Antoine Schouman, Antoine Houël and Vincent Gouedard

Vendor advisers:

  •  M&A: Canaccord Genuity (Nadim Barouki, Grégoire Le Sourd, Hugo Granat and Brieuc Jamain)
  •  Legal adviser: DLA Piper (Xavier Norlain, Matthieu Lampel, Martin Chassany)
  •  Vendor financial due diligence: Eight Advisory (Katia Wagner and Natalia Lebedeva)
  • Vendor strategic due diligence: L.E.K. Consulting (Rémy Ossmann and David Danon-Boileau)
  • Vendor legal due diligence: De Pardieu Brocas Maffei (Jean-François Pourdieu and Matthieu Candia)  Vendor environmental due diligence: AECOM (Julie de Valence)

Financing:

  •  Mezzanine debt: LFPI Gestion (César Rodriguez-Montes and Thibault Sartori)
  •  Senior debt co-arrangers: CIC (Brice Bourrely, Virginie Bertrand and Nadia Mejri) and LCL (Karine Parry)
  •  Senior financing legal adviser: Shearman & Sterling (Arnaud Fromion)
  •  Mezzanine legal adviser: Allen & Overy (Jean-Christophe David)

Press contacts

Qualium Investissement: BRUNSWICK - Agnès Catineau; Alice Lorfeuvre - vulcanic@brunswickgroup.com - +33 (0)1 53 96 83 83

FFC: STEELE & HOLT – Daphné Claude; Dominic Riding – daphné@steeleandholt.com - +33 (0)1 85 08 54 45; dominic@steeleandholt.com - +33 (0)1 85 95 00 08

Abénex: - Antoine Schouman – +33 (0)1 53 93 69 01 – antoine.schouman@abenexcapital.com - Patrice Verrier – +33 (0)1 53 93 69 01 – patrice.verrier@abenexcapital.com


About Qualium Investissement

Qualium Investissement is a subsidiary of the Caisse des Dépôts operating in the nonpublic sector market. Authorised by the French Financial Markets Authority (AMF), it manages capital for third-party investors in France and other countries. Specialising mainly in majority control buyouts, it invests amounts of between €20 million and €75 million, mainly in French small and medium sized companies valued from €40 million to €250 million, and may share in control transactions of up to €500 million. Founded in 1998, Qualium Investissement has raised more than €1.8 billion since inception in funds provided by its sponsor, the Caisse des Dépôts, and over 40 third-party French and foreign subscribers. Since its creation, it has invested in some 60 companies across all the main business sectors (manufacturing, agri-food, specialty retailing, engineering, etc.). It currently has investments in eight unlisted French companies, including La Foir’Fouille, Mériguet, Kermel, Invicta, Poult and IMV Technologies.

For more information: www.qualium-investissement.com

About Future French Champions

Future French Champions is a partnership between Qatar Investment Authority and CDC International Captial initiated in 2014. Its shareholders are: Qatar Investment Authority is the sovereign wealth fund of the State of Qatar responsible for investing globally the country’s budget surplus in order to safeguard wealth for future generations. QIA is partner of choice for investors, financiers and other stakeholders.  CDC International Capital is a subsidiary of Caisse des Dépôts that is dedicated to direct investments alongside sovereign funds and other large international institutional players. CDC International Capital has developed a network of institutional partners in the Middle East, Russia, Asia and North America and invests through a variety of investment structures.

About Abénex

Abénex is a wholly independent private equity firm. Abénex makes long term investments alongside managers in high growth and operational improvement transactions. Abénex specializes in capital development and buyouts with or without financial leverage. The team benefits from a proven know- how in external growth projects, public-to-private transactions, and in partnering with family owners. Abénex invests in companies valued up to €500m, either through majority or minority stakes. Abénex invests currently its fund V, raised in 2015. For more information: www.abenexcapital.com About Cathay Capital Private Equity Cathay Capital Private Equity, founded by Ming-Po Cai and Edouard Moinet in 2006, is a leading international private equity firm specialised in cross-border investment and in supporting the international expansion of North American, Chinese and European companies.