Domoservices Is Sold in Secondary Buyout

Schroder Ventures in November led the secondary buyout of Domoservices, France’s leading central heating maintenance services group, which ranks as the group’s largest French deal to date. The acquisition consideration has not been disclosed, but is reportedly in the FFr 500-700 million (ecu 75-105 million) range. The first buyout of the company, from Elfi, was led by Europe Capital Partners in 1991.Domoservices has sales of FFr 730 million and employs 1,800 people at 170 sites nationwide.

Funds advised by Schroder Ventures, principally its French Buyout Club, have invested for a 58.5% holding. The equity syndicate also included funds advised by Charterhouse SA, as well as Domoservices’ management. The secondary buyout has enabled management’s equity stake, previously in the hands of a single individual, to be distributed more widely among the senior managers, although the proportion of equity in management hands has not altered substantially.

Citibank and the Compagnie Financiere du CIC et de l’Union Europeenne underwrote senior debt for the buyout. A mezzanine tranche, comprising some 20% of the total funding, was provided by Dresdner Kleinwort Benson.