news - omnes capital · biomedical, plista, circulite inc. p.08 renewable energy futuris, eole...

No. 25 - MAy 2014 / The oMNes CApiTAl NewsleTTer

OMNES CAPITAL, the new name for Crédit Agricole Private Equity

www.omnescapital.com

TrendsPrivate equity attracts private investors p.04

Venture capital Xention, prodealcenter, opsona Therapeutics ltd, Cooltech Applications, Gecko Biomedical, plista, Circulite inc. p.08Renewable energy Futuris, eole infrastructures, elettrostudio energia p.10

mid-cap Buyout & Growth capital exclusive Networks, Melkonian, emalec p.12co-investment Delete Group, Fine sounds Group, Moncler, Numericable Group p.14mezzaninesonovision, infopro p.15small-cap Buyout & Growth capital Camerus, Graitec, Finaero p.16

ExpertiseMelkonian Group, a family affair p.06 Profile

A. richard, Chairman and Ceo of prodealcenter: back to his roots p.18

AnalysisJ.-p. Betbèze, economist and former member of the Conseil d’analyse économique: slow growth but profits to return p.17

News

news

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Editorial

BY FABIEN PRÉVOSTThursday 15 May 2014

P.�02

Private Equity Magazine Rankings: Omnes Capital, a leading player in private equity investmentOmnes Capital has claimed the top spot in the rankings for exits completed between 2006 and 2013 for deals with an enterprise value of less than €30 million. The company also ranks among the top four asset management companies in terms of investments in the enterprise value

categories between €0 and €30 million and between €30 million and €75 million, as well as in terms of exits between €30 million and €75 million. (Source: Private Equity Magazine, February 2014).

Novaled receives an award from Cleantech investorsNovaled, an investment supported by Omnes Capital’s Venture Capital team

CORPORATE NEWSFOCUSThe Omnes Capital Newsletter

37-41, Rue du Rocher - 75008 Paris. Managing Editor: Fabien Prévost. Editor in Chief: Martine Sessin-Caracci. Editorial sta� : Solène Poudou, Anderson Dearing, Gaëlle de Montoussé, Sacha Klimek, Stéphane Gillier. Thanks to everyone who contributed to this newsletter. Photo credits: Raphaël Dautigny, Getty Images. ISSN: 2264-9751 Design and production:(LEOM025).

The world of politics and the world of business are sometimes presented as polar opposites. And yet they have more in common than you might expect.

Both need to be careful not to overstate their achievements or deal in self-congratulatory platitudes. As in “The euro zone crisis is behind us” – a statement followed two months later by the outbreak of the crisis in Cyprus. Whoops! Or “The trend in unemployment is turning around” and “Our economic and social policy is paying o� .” The same advice applies to business leaders

“Affirmation… & satisfaction…”

who announce new contracts before they have been signed on the dotted line or express delight in a loss of market share or competitiveness by their rivals.

In business and politics alike,a failure to grasp reality and take action are the enemies of success. The successful entrepreneur – or politician – is the one who is able to set a course. Muddling through is not an option, unless you don’t care where you end up! To succeed, you need to take risks, communicate goals, open minds and thus challenge people’s way of thinking.

What separates the worlds of business and politics is that the private sector feeds the public sector. In France, the public sector accounts for 57% of GDP, compared with 45% in Germany. And so the private sector accounts for 43% in France, compared with 55% for our neighbours. This represents a tremendous advantage. The most e° cient countries are those that have realised that you can’t hope to succeed by reducing the size of the engine while at the same time making the bodywork heavier.

A natural way of enhancing a country’s competitiveness is to make business a priority again

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OMNES CAPITAL /newsletter No. 25 P. 03

and to tighten the public sector’s belt. The events of the late 20th century provide interesting illustrations of this approach in Canada, which led an aggressive policy of reducing public debt to 51% of GDP in the ten years between 1993 and 2003; Ireland, one of the poorest countries in Europe, which went on to become one of the richest in the 13 years between 1990 and 2003; and Germany, where Gerhard Schröder’s reforms of 2003 restored the country’s competitiveness.

Business leaders obviously cannot do much to counter rivals whose costs are 10% lower. The same idea applies to governments, because capital decisions are made using precisely these criteria (Jean-Paul Betbèze will provide valuable additional insight into this in a separate article).

We can only dream of a futurein which politics and business work together in harmony using the same criteria and over the long term. Just imagine how effective that would be!

I’ll stop there because, rest assured, we don’t get involved in politics at Omnes Capital! Our sole passion is the businesses and entrepreneurs that we support. I would like to

thank Geneviève Melkonian for taking the time to talk about her experience of working with Omnes.

Pending the advent of more utopian times, here are some musicians to show us the way forward. For “Affirmation”, we turn to George, who gives us his version – without any words – with a groove to get everyone moving1. He is one of the top ten guitarists of our times and begs you to “give him (me) the night”2. And so you should, without the slightest hesitation. Those of you looking to get some satisfaction should come and see the Rock Legends3. They are sure to deliver with the most famous riff4 since Ludwig van’s Fifth!

I hope you enjoy reading our Newsletter No. 25, which features real information, real companies, real successes, real men and women, and real dedication. Thank you for your loyalty.

[email protected]

For further information, go to: www.omnescapital.com

1. www.youtube.com/watch?v=jKXXzJhhlhQ Sixties look, precision, touch, control, joy of playing music... it’s all there.2. In concert on 28 June at the Olympia.3. In concert on 13 June at the Stade de France.4. Grab a Telecaster guitar, hook up a Fuzz pedal and on the second chord play “B B… B D D”.

€2.1 bnUNDER MANAGEMENT

€117 miN iNvESTMENTS

€150 miN ExiTS

KEY FiGURES FOR 2013

1 200iNvESTMENTopportunities received

between 2006 and 2013, was among the three prizewinners at the Cleantech AFIC EY 2013 awards evening. The award was presented on 11 February at the annual conference of AFIC’s Cleantech club, in partnership with GreenUnivers. Novaled, a company that develops technologies and innovative organic materials used to manufacture OLEDs,

received the Cleantech award for the Best Acquisition of an Innovative SME by a major group. It was purchased by the Samsung group for €260 million ($347 million), including a €30 million earnout.

AIFM authorisation Omnes Capital has obtained AIFM authorisation from the French

financial markets regulator, AMF. Omnes Capital is one of the first French private equity management companies to receive AIFM authorisation, which is set to become a standard in the profession. The AIFM Directive is aimed at harmonising the legal framework for asset manage-ment and enhancing professional and retail investor protection.

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Trends

P. 04

Private equity, long the private hunting ground of institutional investors, now offers benefits to private investors looking to diversify their portfolio: “This type of investment is still not very widely available from private banks. Nonetheless, it meets the needs of high-end customers looking to spice up the returns on their portfolio”, says Martine Sessin-Caracci, Omnes Capital’s Head of Communications and Investor Relations. “In particular, it gives private individuals a means of investing in unlisted SMEs, which have strong growth potential. In France, private equity has outperformed the stock markets over the long term, with an IRR of 11%, compared with an IRR of 4.5% for the CAC 40 index over the same period*. The icing on the cake is an attractive tax incentive, as capital gains on funds are not subject to income tax.” These distinctive products give investors a chance to invest in France’s economic fabric: “Private equity plays a key role in the development of SMEs, which help to drive job and wealth creation. This is an argument that makes sense to private clients, many of whom are themselves entrepreneurs.”

Private equityattracts private investorsPrivate equity has numerous benefits for private investors looking for profitable and meaningful investments. Omnes Capital has developed a high value-added range for this type of investor.

TURN TO A SPECIALIST FOR SUPPORTWith their 15 years of experience, Omnes Capital’s teams rigorously select high-potential SMEs for their funds. The companies supported include success stories such as Melkonian (mineral extraction equipment), Novaled (OLED structures) and Proman (temporary staffing). Today, Omnes Capital has developed for private clients a full range of high net worth solutions usually reserved for institutional investors, which reflects their entrepreneurial sensitivity: “Omnes Croissance 4, our Mid-Cap Buyout & Growth Capital fund, is open to wealthy clients who can invest large amounts. Like institutional investors, we offer them direct access to the management team, and they can meet with the entrepreneurs we are supporting. They are kept up to date through detailed reporting and newsletters. In addition, we have built exclusively for private investors a range of FCPRs approved by the AMF with a lower investment. We possess genuine expertise in this type of product. LCI, our first FCPR for private clients, launched in 2002, achieved great success, producing a net annual return of 7%”, says Martine Sessin-Caracci.

* Source: AFIC - EY 2012 study;IRR over a 10-year period to year-end 2012.

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investors, we offer them direct access

can meet with the entrepreneurs we are

Why invest in unlisted SMEs?

Private equity, a partner for companies

1,500 companies supported by private

equity every year, with €6 billion invested in 2013

(source: AFIC - Grant Thornton April 2014)

80,000jobs created by 2,800 companies supported by private equity between 2011 and 2012

(source: AFIC-EY December 2013)

ATTRACTIVE TAX INCENTIVE

Capital gains recorded on sales of funds exempt

from tax**

DIVERSIFICATIONof investment portfolios

—RecommendedALLOCATION

of 5% of a portfolio

SOLID PERFORMANCE

over the long term—

OUTPERFORMANCEof the CAC 40

over 10 years* by 6.2 %

* Source: AFIC - EY 2012.** Excluding CSG and CRDS social security contributions.

A WHITE PAPER ON PRIVATE EQUITY WHAT IS PRIVATE EQUITY? HOW DOES A FUND WORK?

IS IT AN INVESTMENT FOR PRIVATE INDIVIDUALS?To help private investors gain a better understanding of this asset class, Omnes Capital has published a white paper covering all of these issues.

To receive a copy, please contact Michael Chetrit [email protected]

In 2014, Omnes Capital is launching two new FCPRs dedicated to private investors: LCL PME Expansion 2*

and Omnes Croissance 4 Private Investors*AMF approval currently pending

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A

Expertise

P. 06

After Omnes first invested in the Melkonian group in 2008, commodity prices suddenly collapsed, plunging two-thirds in one quarter owing to a burgeoning financial crisis and a freeze on mining investment projects. But Omnes Capital did not lose confidence in the business. “Given the growing demand for minerals around the world, we knew that beyond this cyclical decline, conditions in the international mining market were buoyant. What’s more, Melkonian was an efficient and well-organised company offering excellent quality of service. It was led by a professional team with a perfect grasp of its market and with numerous development plans”, recalls Benjamin Arm, Director at Omnes Capital. “And this move certainly paid off. In 2009, Melkonian managed to deliver profitable growth despite the crisis, by winning new customers.” From a human perspective, Omnes Capital soon managed to win the confidence of the founders. “Primary transactions are often unusual: when businesses work with a financial investor for the first time, interpersonal relationships are especially important to them. Respect, an ability to listen

Timeline

•�1955: Jacques and Angèle Melkonian open a garage in Gardanne.

•�1975: After inventing an axle for equipment used in mining facilities, Jacques gives his garage to its 12 employees and sets up Continental Industrie, a supplier to all the mines in France.

• 1994: The founder’s three children acquire the business and decide to focus on building underground mining equipment for international markets.

•�2008: Omnes Capital invests in the Melkonian group, present in 70 countries.

•�2014: Omnes Capital sells its shareholding to Bpifrance, Amundi PEF and Sofipaca.

A familyaffairAfter working with the Melkonian group for five years, Omnes Capital has sold its investment in the leading mining equipment company with a heavy heart. We look back at a cordial and productive partnership.

Melkonian Group

Key figures

•�2013 sales: €33 million•�Presence: over 70 countries•�Production units: 28•�Headcount: 97 employees

and shared values between the parties are essential ingredients, and this was certainly the case.”

SUPPORTING THE FOUNDERS OVER THE YEARSThe Group, which had seen several crises in its market in the past, including the shutdown of French mines, was cautious by nature. “Our key duty was to help the founders to build up their self-confidence and to make strategic decisions and take risks”, says Benjamin Arm. This included the roll-out of an intermediate level of operational management and a strategy committee, a switchover from outright trading to the design, manufacture and marketing of equipment, and the creation of subsidiaries – in countries including Niger and Burkina Faso – to get closer to its customers while retaining its wholly French identity. “Melkonian rose masterfully to a number of different challenges and we were delighted to have stood alongside it. Today, we are moving on to pastures new, but we all have fond memories of this partnership”, says Benjamin Arm.

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Why did you choose Omnes Capital fi ve years ago?In 2008, we decided to approach investors so as to consolidate on the expansion in our family business with the support of fi nancial experts, retain our management team over the long term and open up the Group’s capital for its employees. It was crucial for us to share our values with our new partner. From our very fi rst meeting with Omnes Capital, we immediately felt similarities, confi dence, and mutual respect, and so our cooperation began with a shared enthusiasm.

And looking back, how do you assess your fi ve years of working together?It was an emotional moment when my brothers and I signed o� on Omnes Capital’s exit. We worked closely together, with openness and trust, and our strategy committee meetings with Benjamin Arm and Daniel Balland, who has now retired, will live long in our memories. We invited Daniel to attend our next strategy committee meetings as special advisor, alongside our new investors: what better proof could there be of how pleased we were with our relationship with Omnes Capital! I also hope to stay in touch with Benjamin and, who knows, perhaps see him purchase another stake in a future funding round…

So why did the partnership come to an end?Omnes Capital wanted to sell its shareholding. Five years is the normal length of an investment cycle. In parallel, we – the family – wanted to increase our shareholding. These two factors prompted us to bring the partnership to an end, but it was a really fantastic deal and so our new investors will have a lot to live up to!

GENEVIÈVEMELKONIANCo-Chairman of the Melkonian group

“We worked closely together, with openness and trust”

3 QUESTIONS FOR...

Omnes Capital invests in the Melkonian group, present in

included the roll-out of an intermediate level of operational management and

closer to its customers while retaining “Melkonian

, says Benjamin Arm.

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P. 08

VENTURE CAPITAL

Xention/R&DOctober 2013 – Founded in 2002 and supported by Omnes Capital since 2005, Xention (Cambridge), a company that researches and develops drugs acting on the ion channels, signed an agreement with Servier to develop and market its XEN-D0103 product in all territories outside the United States and Japan. XEN-D0103 is a selective antagonist of Kv1.5., discovered and developed by Xention to treat auricular fibrillation, and is ready to go into phase II(a) clinical trials. The initial and future amounts to be paid by Servier to Xention to exercise the option, plus subsequent milestone payments, may add up to €120 million.

PortFoLIo nEws

PRoDeALCenteR/onLine MeRCHAnt SeLLinGAGRiCuLtuRAL SPARe PARtSSeptember 2013 – Prodealcenter raised €1 million from Omnes Capital to support its strong growth. The company, an online merchant selling agricultural spare parts, was founded in 2010 and is the leader in its market. With its first-class listings and high-quality customer support, Prodealcenter has achieved strong growth in its sales and its customer base. The financing will help to underpin and step up the pace of the company’s development, extend its product range for customers in France and abroad and shore up its leadership position in France in the web channel.FCPIs: Capital Invest PME 2012, Innovation 12, Innovation 13 Xavier Brunaud, +33 (0) 1 80 48 79 62 Marine Huber, +33 (0) 1 80 48 79 65

oPSonA tHeRAPeutiCS LtD/ DRuGS

166investment transactions in 13 years, over 40 successful exits and 7 IPos

€421 min assets under management

€30 minvested in 2013

€21 min capital gains realised in 2013

FCPIs: Capital Invest PME, Capital Invest PME 2009, CA Innovation 2008, CA PME Innovation 2009, CLI 5, CLI 6, CLV1Bruno Montanari, +33 (0)1 80 48 79 58

October 2013 – Opsona Therapeutics Ltd, an Irish pharmaceutical company specialised in drugs targeting the innate immune system, raised €3 million from Omnes Capital, which joined an investor syndicate that has provided a total of €36 million in funding. OPN-305, Opson’s flagship product, is a monoclonal antibody. The company will use the proceeds of this financing to supplement the funding of a phase-two clinical trial to confirm the harmlessness and efficacy of its product in renal transplant patients at high risk of Delayed Graft Function (DGF). FCPIs: Capital Invest PME 2012, Innovation 12, Innovation 13,Bruno Montanari, +33 (0)1 80 48 79 58

2013 ACTIVITy

Investment activities were again very brisk, with €30 million invested in innovative projects, putting the Venture Capital team in third place among investors in start-ups in France in the 2013 rankings published by Private Equity Magazine (excl. Bpifrance).

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Plista/digital mediaDecember 2013 – Omnes Capital sold its interest in Plista, the leader in digital media in Germany, to GroupM. Supported by Omnes Capital since 2010, Plista specialises in innovative solutions for selective real-time digital advertising and content marketing. The company, which operates in Germany, Austria and Switzerland for customers including Volkswagen, Sony and Coca-Cola, has developed cutting-edge recommendation and advertising technology and uses it to deliver targeted advertising and suggest relevant content for internet, mobile and tablet users.FCPIs: Capital Invest PME, Capital Invest PME 2009, Crédit Agricole Europe Innovation 2008, Crédit Agricole Europe Innovation 2009Michel de Lempdes, +33 (0)1 80 48 79 61

COOlteCH aPPliCatiONs/magNetiC COOliNgteCHNOlOgYDecember 2013 – Omnes Capital invested €1.5 million in Cooltech Applications, a world leader in magnetic cooling solutions that featured on the 2013 Global Cleantech 100 list of the most innovative and promising cleantech businesses. Cooltech Applications is the first business in the world to offer an environment-friendly, cost-effective and industrial-scale refrigeration and air-conditioning solution based on magnetic cooling technology.FCPIs: Capital Invest PME 2012, Innovation 12, Innovation 13 Michel de Lempdes, +33 (0)1 80 48 79 61

News

TRADE SALES INVESTMENTS

geCKO BiOmediCal/iNNOVatiVe HemOstatiC PROdUCtsSeptember 2013 – Gecko Biomedical, an independent medical device company based in Paris, raised €8 million in Series A financing. The company develops innovative biodegradable and biocompatible surgical wound closure solutions. What sets these biomaterials apart is that they are adhesive, when the surgeon so requires, despite the presence of blood. The products developed by Gecko Biomedical include liquid films and adhesive patches – two solutions that enhance the safety and efficacy of internal surgical wound closures.FCPIs: Capital Invest PME 2012, Innovation 12, Innovation 13 Alexia Perouse, +33 (0)1 80 48 79 55 Cédric Lécureuil, +33 (0)1 80 48 79 57

CiRCUlite iNC./mediCal deViCesDecember 2013 – Omnes Capital sold its interest in Circulite to HeartWare Inc. in a share exchange. Circulite Inc., an innovative cardiology start-up backed by Omnes Capital since 2007, developed and gained the CE mark for its first circulatory support system in September 2012. In parallel, it has harnessed the potential of its technology platform to create a next-generation endovascular pump and in late 2013 took up HeartWare Inc.’s offer providing it with all the financial, clinical, marketing resources it needed to roll out its product range and make it available to patients.FCPIs: Capital Invest PME, Crédit Agricole Europe Innovation 2008, CLVC, LCL Innovation 2007, LCL Innovation 2008 Alexia Perouse, +33 (0)1 80 48 79 55

Opsona Therapeutics Ltd, an Irish pharmaceutical company

€3 million from Omnes Capital, which

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P. 10

RENEWABLE ENERGY

July 2013 – Futuris won a call for tenders in Italy to build an 8.1 MW biomass plant in Friuli province (around 100 kilometers north-east of Venice). The plant, which will run on timber, is expected to come on line by 2016 and will qualify for a feed-in tariff for a period of 20 years. The total investment will amount to €35 million, a large share of which will be funded by a bank loan. The investment is part of the ambitious business plan of Futuris, which aims to become a major player in the biomass sector in Italy and Europe over the medium term. FCPR: Capenergie IIMarc-Philippe Botte, +33 (0)1 80 48 79 35

PORTFOLIO NEWS

Futuris/Biomass

CAPENERGIE II INFRASTRUCTUREThe Renewable Energy team recently completed the initial closing of the Capenergie II Infrastructure fund. The fund will be used to invest in European infrastructure projects alongside Capenergie II. Together, Capenergie II and Capenergie II Infrastructure have a total investment capacity of over €140 million.

FUND-RAISING

September 2013 – The Airaines wind farm, located north-west of Amiens in the Somme département, was commissioned on 19 September 2013. Ferme éolienne Plaine du Montoir 1, the company that owns the facility, is the fourth wind farm owned by Eole Infrastructures, an investment owned by the Capenergie II fund. The facility’s six wind turbines have a unit capacity of 2 MW. Every year, they

will eliminate the emission of 7,540 tonnes of CO2 and generate 26,000 MWh in electricity – the equivalent of the consumption, excluding heating, of 11,700 homes. The new facility increases Eole Infrastructures’ target total capacity to 46 MW.FCPR: Capenergie IIBérengère Corson-Vanlerberghe, +33 (0)1 80 48 79 36

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4 new investments in 2013

2 new countries for Capenergie II

500MWinstalled at companies in the portfolios

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News

PORTFOLIO NEWS

ELETTROSTUDIO ENERGIA/PHOTOVOLTAICDecember 2013 – Elettrostudio Energia SpA, a joint investment by Capenergie I and II, has completed the construction of a photovoltaic power station in Castelguglielmo in the Veneto region in north-east Italy. The 5.6 MW plant went on line in December 2013 after four months of

construction. The new power station was built on a site with optimum sunlight conditions and is also equipped with sunlight monitoring systems that optimise the production of electricity. The station will benefi t from a feed-in tari� for 20 years.FCPRs: Capenergie I, Capenergie IIBérengère Corson-Vanlerberghe, +33 (0)1 80 48 79 36Serge Savasta, +33 (0)1 80 48 79 34

FOCUS

PHOTOVOLTAIC CALL FOR TENDERS

SUCCESS FOR CAPENERGIE I AND IIIn March 2014, The French Ministryfor Ecology, Sustainable Development and Energy revealed the results of the French Energy Regulatory Commission’s second call for tenders for large photovoltaic installations. Of the 400 MW in projects awarded, our investments gained 150 MW and thus were among the main benefi ciaries.

TARGET STRATEGIC ALLOCATION

TARGET SECTOR ALLOCATION

Infrastructure

Growth capital

TARGET GEOGRAPHICAL ALLOCATION

Wind/Solar

Other

Western Europe

France

40%

45%

40%

60%

60%

55%

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P. 12

MID-CAP BUYOUT & GROWTH CAPITAL

January 2014 – Exclusive Networks made three acquisitions in three months following the arrangement by Omnes Capital (which has supported the group since 2010) in September 2013 of a €12 million

capital increase and €60 million in acquisition funding raised entirely with ICG Senior Debt Partners. The acquisitions – of Secureway in Dubai in November 2013, Terach in the Benelux countries in December 2013 and Bilisimcim in Turkey in January 2014 – strengthen the group’s presence in the three areas and build up its offering in the EMEA region. Exclusive Networks will reach its target of €500 million in sales this year and €1 billion by 2017 through organic growth of 25% and acquisitions.FCPRs: CACI 3, CACI PIPhilippe Zurawski, +33 (0)1 80 48 79 43Mikaël Schaller, +33 (0)1 80 48 79 47

PoRtFoLIo nEwS

EXCLUSIVE NETWORKS/IT SECURITY

“Our vision is to become a genuine market booster for businesses specialised in IT security and networks in the EMEA region. By expanding our geographical footprint, we will enhance the support we provide to existing and new resellers looking to develop their commercial activities.”Olivier Breittmayer, Chairman and Chief Executive Officer of the Exclusive Networks group

€337 min assets under management


113qualified opportunities sourced in 2013

A PROVEN INVESTMENT STRATEGY• French SMEs, with an enterprise value of between €25 million and €80 million (core target) • ticket size: €8 million to €20 million• Leaders in their sector, with solid fundamentals, a resilient business model and strong development potential through organic growth and acquisitions

OPERATIONAL VALUE-ADDEDlargely resulting from growth in the sales generated by portfolio companies

FIRST-CLASS TRACK RECORDThe team has achieved a gross exit multiple of 2.2x on 12 investments since 2005

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SALES

MELKONIAN/MINING EQUIPMENTFebruary 2014 – Omnes Capital sold its investment in the Melkonian group, a leader in mining and underground works equipment, to the founding family, with support from Bpifrance, Amundi PEF and Sofipaca. The Melkonian group designs, manufactures and distributes equipment and spare parts for extracting and transporting minerals. Omnes Capital first acquired an interest in the group’s capital in 2008 alongside the Melkonian family as part of an owner buyout deal. Thanks to Omnes Capital’s support over six years, the Melkonian group enjoyed strong growth that increased

its sales by more than 60% over the period. The group, resolutely focused on international markets, which now account for 95% of its sales base, achieved this result by strengthening its teams (its headcount rose by close to 50% between 2008 and 2013), launching a special range of products for narrow-vein mining and opening subsidiaries in Niger and Burkina Faso. FCPR: CACI 3Benjamin Arm, +33 (0)1 80 48 79 44Rémy Deloffre, +33 (0)1 80 48 79 46

News

EMALEc/INDUSTRIAL MAINTENANcE

December 2013 – Omnes Capital sold its investment in Emalec Développement to the management team, which has regained full control of it. Based in Saint-Genis-les-Ollières near Lyon, Emalec provides maintenance, electrical, air conditioning systems and multi-technical repair services at branch networks in France (specialist retailing, bank networks and service stations). The company has developed considerable technical and logistical expertise, making it one of the few companies specialised in multi-site maintenance. Omnes Capital first invested in Emalec Développement in 2007 through an owner buyout alongside the founding managers and supported the company for six years. It guided the company in its strategy to increase market share through acquisition-led growth – including four deals – and the expansion of its customer portfolio, winning business with Hertz, Swarovski and Thomson Europe. Emalec generates sales of over €30 million and employs 232 people.FCPR: CACI 2Éric Rey, +33 (0)1 80 48 79 41Mikaël Schaller, +33 (0)1 80 48 79 47

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P. 14

DELETE GROUP/ENVIRONMENTAL SERVICES

INVESTMENTS

€150m in assets under management

30%average increase in share prices since the Moncler and Numericable IPOs

CO-INVESTMENT

FINE SOUNDS GROUP/AUDIO EQUIPMENT

March 2014 – Omnes Capital supported the international expansion of Fine Sounds Group, a world leader in high-end consumer audio equipment, alongside LBO France. Based in New York, Fine Sounds owns the McIntosh, Audio Research and Sonus Faber brands. The group posted sales of over $80 million in 2013.FCPR: CAA 2013 Co-Investment FundFrantz Paulus, +33 (0)1 80 48 78 91

jackets, was founded in

January 2014 – Omnes Capital invested in the Finnish group, Delete, alongside Danish fund Axcel. The Helsinki-based firm is one of the main providers of environmental services in Finland and Sweden. It provides three types of additional services –

industrial cleaning, demolition and waste treatment – and posted sales of over €100 million in 2013.FCPR: CAA 2013 Co-Investment Fund Frantz Paulus, +33 (0)1 80 48 78 91

SFR ACQUIRED BY NUMERICABLE GROUP

On 6 April 2014, Numericable Group signed a deal to acquire SFR, a subsidiary of the Vivendi group. The link-up has given rise to a major new player in the French telecoms sector. Omnes Capital invested in Numericable Group in 2008, alongside Carlyle Group.

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OMNES CAPITAL /newsletterNo. 25 P. 15

INFOPRO/TRADE PRESSDecember 2013 – Omnes Capital sold its investment in Infopro following Infopro’s acquisition of Le Moniteur group. Apax Partners and Bridgepoint, shareholders respectively in Infopro and ISH (Le Moniteur’s holding company), are supporting the group alongside Infopro’s management. Now the French leader in business information (€300 million in sales, 2,000 employees), the group plans to pursue its growth strategy by harnessing the strengths of its employees and brands. The fund achieved an exit multiple of 1.9x on the sale.FCPR: Mezzanis 2Camille Delibes, +33 (0)1 80 48 78 95

MEZZANINE

TRADe sAles

MONCLER/LUXURY GOODSDecember 2013 – The Moncler group, which manufactures luxury down jackets, was founded in France in 1952. Omnes Capital purchased a stake in Moncler alongside Eurazeo in 2011 and it was floated on the Milan stock exchange on 16 December

2013. The IPO was 31 times oversubscribed and priced at the top end of the range, at €10.20 per share. Moncler doubled its sales between 2010 and 2013 and grew its store network from 39 to almost one hundred.FCPRs: CAPe Co-Invest 1, Predica 2007 Co-Investment FundFrantz Paulus, +33 (0)1 80 48 78 91

IPOs

NUMERICABLE GROUP/MEDIA AND TELECOMSNovember 2013 – Numericable successfully completed its IPO, which was the largest on Euronext in close to four years. Buoyed by demand exceeding supply by a factor of ten, the price was set at €24.80, at the top of the indicative price range. Omnes Capital had originally invested in the group alongside Carlyle Group in 2008 when it launched its Co-Investment business.FCPR: CAPe Co-Invest 1, Predica 2007 Co-Investment FundFrantz Paulus, +33 (0)1 80 48 78 91

SONOVISION/DOCUMENT ENGINEERING

February 2014 – Sonovision was sold to the Ortec industrial group. Omnes Capital co-arranged and bought more than one-third of the mezzanine finance (€17.2 million) in 2006 in the LBO managed by LBO France. As a result of the deal, Ortec is accelerating its development in the aerospace sector. Sonovision has kept its name and become an independent subsidiary of Ortec alongside other group units. The exit multiple achieved on the deal was 1.9x.FCPR: Mezzanis 2Camille Delibes, +33 (0)1 80 48 78 95

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P. 16

CAMERUS/FURNITURE RENTAL FOR TRADE FAIRSNovember 2013 – Omnes Capital originally acquired a stake in the capital of Camerus, a company that rents out furniture to trade fair and event organisers, through an MBO alongside the company’s management team. The partnership will help the company to continue developing its business by targeting a larger customer base and building new product ranges. Based in Pantin and founded in 1992, Camerus is a French leader in its rental field. It has a catalogue of over 700 products, some of them developed exclusively by Camerus. Sales have risen steadily since 2010, nearing the €10 million mark in 2013.Fund: Omnes ExpansionLaurent Espic, +33 (0)1 80 48 79 51Bertrand Dupray, +33 (0)1 80 48 79 54

INVESTMENT

€1-8 m ticket size

€25 mvalue of target businesses


17companies held in the portfolio

SMALL-CAP BUYOUT & GROWTH CAPITAL

Omnes Capital has launched two new funds dedicated to investment in French unlisted SMEs, LCL PME Expansion 2and LCL Expansion 2. The buyout and growth capital funds were subscribed by LCL and offered to its private banking and wealth management clients. The funds will give the team a minimum investment capacity of €80 million.

FUND-RAISING

GRAITEC/SOFTWARE VENDORNovember 2013 – Following the acquisition by Autodesk of some of Graitec’s technological assets (including the intellectual property concerning its Advance Steel and Advance Concrete software, and the related R&D team), Omnes Capital sold its investment in the company, the leading software vendor for the construction engineering sector founded in 1986. At the same time, the founder regained full control of the company. The acquisition will enhance Autodesk’s existing construction engineering offering and broaden its portfolio of Building Information Modeling (BIM) technologies used in the automated production of manufacturing documents for metal and reinforced concrete structures. The sale gave the CLFS1 fund an exit multiple of over 5.0x.Fund: CLFS1, Laurent Espic, +33 (0)1 80 48 79 51

FINAERO/AEROSPACEMarch 2014 – Omnes Capital sold its shareholding in Finaero, the world leader in aerospace painting and sealing. Since Omnes Capital bought a stake in Finaero’s capital in July 2008, the group has tripled in size (sales of €113 million and 1,400 employees in 2013) and diversified into the development

and maintenance of airliner cabins (AIP) and wiring studies and implementation (CIEE). Omnes Capital achieved an exit multiple of 1.7x on the sale.Funds: Omnes Expansion, LCL ExpansionFrançois Lory, +33 (0)1 80 48 79 52Fabrice Crabié, +33 (0)1 80 48 79 53

SALES

KE

Y F

EA

TUR

ES

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Analysis

FRANCE, THE SECOND-MOST ATTRACTIVE COUNTRY FOR HIGH-GROWTH SMES IN TERMS OF THE R&D TAX FRAMEWORK

Slow growth but profits to returnWith the final figure for French GDP growth in 2013 unlikely to top 0.3%, economist Jean-Paul Betbèze,a former member of the Conseil d’analyse économique(an independent, non-partisan advisory body reporting to the French prime minister), talks to Omnes Capital about the outlook for the country’s economy.

Jean-Paul Betbèzeeconomist and former member of the Conseil d’analyse économique


How do you see things shaping up for France in the coming years?The economic recovery will be slow, with annual growth of around 1.5% for the next few years. This figure should be viewed in the context of the low profitability of businesses – large corporates and SMEs alike – operating in the country, which also accounts for the high level of unemployment. But at the same time, a growth path is forming, albeit gradually, with little inflation, that provides a promising outlook in terms of businesses benefiting from tight cost control. And so a return to higher margins is on the cards.

What are the strengths of French SMEs?French SMEs are changing fast. Medium-sized companies are gaining momentum and building up their

presence in export markets. They are the ones that the pact of responsibility and CICE tax credit* are intended to help. Meanwhile, small businesses are emerging that are set to grow very fast, in conjunction with new technologies. These small firms no doubt carry higher risks for potential investors, but may be poised for spectacular growth within several years. Appropriate financing strategies must be found for them, and they need to be given greater flexibility.

Can the French tax system be improved?The French tax system has taken some strides forward, since the gap between the effective tax rate for large corporates and for SMEs is narrowing, with the latter moving down towards the former. Nonetheless, the general effective tax rate for French businesses is still too high compared with the European average. A reduction in tax pressure remains on the agenda, especially for corporate income tax.

Is Europe’s social model a barrier to competitiveness?The European social model is a market-based social economy, combining efficiency and solidarity. From a competitiveness standpoint, this model needs to adapt to circumstances and to today’s crisis, but in a seamless way. Benefits and agreements need to be reviewed and adjusted through talks with those affected, bearing in mind that the market-based social economy is by design geared to the long term. Financial stability, with the role of banks and savings, plus fiscal stability and growth – in other words our competitiveness in an open economy – are also achieved over time.

*CICE tax credit for competitiveness and employment.

Net grants in thousands of euros for €1.5 million in annual R&D spend

Source: Deloitte, Inspection générale des finances, 2011.

India JapanBrazilBelgiumNetherlandsUSCanadaGermany UK Russia France China

750670

500460365

2051701303025100

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LE RETOUR À LA TERREAlexandre Richard est un entrepreneur dans l’âme. Féru de boxe française, il crée une école alors qu’il est encore étudiant ; chasseur émérite, il met sur pied l’Association nationale des jeunes et nouveaux chasseurs de France… Côté pro, il a su attendre le bon moment, estimantque, « pour être un bon manager, il faut avoir été salarié ». Fils d’agriculteur, il commence son parcours en tant qu’ingénieur commercial chez un cons-tructeur de matériel agricole. « Dès l’âge de 9 ans, je conduisais un tracteur… Je m’intéressais déjà au fonctionnement d’une exploitation agricole », se souvient Alexandre, qui résume en trois mots sa vocation : l’entrepreneuriat, le monde agricole, le web. En 2006, il crée sa première société, Weekendtour, un site de vente de co� rets week-end élaborés en partenariat avec des o� ces de tourisme

et des labels ruraux. Quatre ans après, le jeune homme, trentenaire, décide d’investir un marché encore vierge, la vente en ligne de matériel et de pièces agricoles. Fort de sa connais sance du secteur et de son expérience du e-commerce, il monte en trois semaines le business model de Prodealcenter, et la success story com-mence. « La première commande arrive dans l’heure. Ensuite, la chance me sourit : une loi oblige les agriculteurs à remplacer leurs cuves à fi oul par des cuves GNR1, j’ai aussitôt référencé un fournisseur. En un an et demi, le chi� re d’a� aires dépasse le million d’euros. » En novembre 2012, Prodealcenter remporte le prix du Meilleur Espoir décerné par la Fevad2. « Aujourd’hui, nous commercialisons plus de 80 000 références au plus bas prix. Malgré la concurrence qui frappe à la porte, nous sommes en tête et comptons bien y rester. »1. Gasoil non routier.2. Fédération e-commerce et vente à distance.

BACK TO HIS ROOTS and rural associations. Four years later, at the age of 30, he decided to invest in the still

ALEXANDRE RICHARDPDG de Prodealcenter.fr / Chairman and CEO of Prodealcenter.fr

ZOOM/FOCUS

UNE RELATION DE CONFIANCEAu moment où Prodealcenter est primé par la Fevad, les investisseurs abondent.

1997Études supérieures d’agronomie /Masters’ degree in agronomics

2001Ingénieur commercial chez un constructeur de matériel agricole /Sales engineer for a farm equipment manufacturer

2006Création de Weekend-

PARCOURS/CAREER PATH

Portrait /Profi lePortrait /Profi le

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de vente de coffrets weekend élaborés en partenariat avec des offices de tourisme

1. Gasoil non routier.2. Fédération e-commerce et vente à distance.

Back to his rootsAlexandre Richard has entrepreneurship in his blood. A French boxing enthusiast,he set up a school teaching that sport while he was still a student. An avid hunter, too, he founded the French national association of young and new hunters. In business, he bided his time to strike at the right moment, since he believes that “to be a good manager, you must have been an employee”. A farmer’s son, he started out as a sales engineer within a company manufacturing farm equipment. “From the age of nine, I was driving a tractor around …I was already interested in how to run a farm”, recalls Alexandre, who sums up his calling in three words: entrepreneurship, farming, internet. In 2006, he founded his first company, Weekendtour, selling gift vouchers in conjunction with tourist offices

and rural associations. Four years later, at the age of 30, he decided to invest in the still virgin online market for farm equipment and spare parts. Harnessing his knowledge of the sector and his ecommerce experience, he devised Prodealcenter’s business model in three weeks and the first chapter in the success story was complete. “The first order came in within an hour. Then I got lucky: a new law obliged farmers to replace their fuel oil with NRF1 tanks, and so I immediately listed a supplier. In just a year and a half, our sales topped one million euros.” In November 2012, Prodealcenter gained first place in the New Hopes category at the Fevad awards2. “We now sell over 80,000 products at the lowest price. Even though our competitors are knocking at the door, we are ahead and intend to stay there.”1. Non-road fuel.2. French e-commerce and distance selling federation.

a trUst-BaseD reLatIoNSHIPWhen Prodealcenter received the award from Fevad, potential investors popped up from everywhere. Alexandre Richard had plenty to choose from, but looked for a fund that shared his “farmer mindset” combining humanism with rigorous financial management. “We unanimously chose omnes Capital be-cause we have a great deal in common: the same age, the same way of working… it is a genuine partnership.”

uNe reLatIoNDe ConfianCeAu moment où Prodealcenter est primé par la Fevad, les investisseurs abondent. Alexandre Richard n’a que l’embarras du choix mais il cherche un fonds qui partage sa « mentalité agricole », qui allie humanisme et gestion financière draconienne. « Nous avons choisi Omnes Capital à l’unanimité car nous avons beaucoup de points commun : le même âge, la même façon de travailler… C’est une vraie relation de partenaires. »

chez un constructeur de matériel agricole /sales engineer for a farm equipment manufacturer

2006Création de Weekend-tour, / Foundingof Weekendtour

2010Lancement de Prodeal-center.fr / Launch of Prodealcenter.fr

2013Levée de fonds de 1 million d’euros auprès d’Omnes Capital / €1 million raised from omnes Capital

2014Décoré de l’Ordre du mérite agricole / Awarded the French agricultural order of merit

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