European private equity firm Cinven is to acquire Prezioso Technilor from Indigo Capital for an undisclosed amount. Prezioso is a provider of coating and insulation services. Headquartered in France, the business was founded in 1957 and employs over 2,700 staff globally.
European private equity firm, Cinven today announces it has reached agreement to acquire Prezioso Technilor (“Prezioso” or the “Company”) from Indigo Capital for an undisclosed consideration.
Prezioso is a leading provider of coating and insulation services which maintain vital industrial infrastructures in the energy and infrastructure sector. Prezioso’s services are critical to protecting the integrity of off-shore oil and gas and nuclear installations.
The Company is the market leader in its core markets where it primarily serves blue chip Western energy companies, such as EDF, Total, BP and Exxon. Prezioso’s markets in the O&G and nuclear industries are expected to deliver double digit growth over the next five years, driven by the increase in the number of off-shore O&G installations – and their maintenance requirements – and by the lifetime extension of nuclear reactors and more stringent maintenance requirements following Fukushima.
Over the last five years, the Company has delivered outstanding revenue growth of over 15% per annum. In 2011, it generated sales of €320 million. Headquartered in France, the Company was founded in 1957 and employs over 2,700 staff globally.
Commenting on today’s announcement, Nicolas Paulmier, Partner at Cinven Partners LLP, said:
“Prezioso already has strong international operations. Together with management, we have identified significant growth opportunities in other markets including Brazil, the Middle East and Northern Europe. This investment reinforces our strategy of finding European-headquartered businesses whose growth prospects are primarily driven by exposure to rapidly growing emerging markets.”
“Our investment in Prezioso demonstrates the combined strength of Cinven’s sector expertise and our local European network. Our Business Services team had been actively looking at investment opportunities in the energy services sector that can benefit from the growth in energy production without direct exposure to volatile commodity prices. Our team in Paris was instrumental to the successful execution of this investment.”
The economic value of the assets Prezioso maintains is very high. Performing maintenance work in operational conditions without disrupting the production is a challenge we take up every day for our customers. Customers, therefore, will only rely on a provider like Prezioso with a strong knowledge and a long track record of a ‘zero defect’ service.”
“We are very excited about working with Cinven. We believe they are the right partner to help grow the business globally organically and through acquisition given their experience of doing this successfully with other companies.”
Cinven was advised on the transaction by Leonardo (Ludovic Tron), Bain & Co (Jérôme Brunet), Deloitte (Matthew Jiggins), Latham & Watkins (Thomas Forschbach and Nathalie Alibert), Taj (Arnaud Mourier and Fanny Grillo) and Marsh (Humbert d’Autichamp et Sophie Tournilhac). Debt financing has been provided by a group of seven banks who are existing lenders to Prezioso and will roll over their commitments as part of the transaction.
Notes to editors About Cinven
About Prezioso Technilor
Cinven Partners LLP
Warwick Court Paternoster Square London EC4M 7AG
Tel +44 (0)20 7661 3333 Fax +44 (0)20 7661 3888 www.cinven.com
Cinven is a leading European buyout firm focused on building world-class European
Established in 1977, the firm invests in six key sectors: Business Services, Financial
Services, Industrials, Consumer, and Technology, Media and Telecommunications
Cinven has a dedicated Business Services team which has invested €7 billion over
the course of Cinven’s history. The most recent Cinven Fund investment is CPA
Global, an IP management services business which Cinven acquired in March 2012.
Other recent investments by the Cinven funds include Guardian, SLV, EnServe,
Avolon and Sebia.
In Business Services, Cinven’s most recent realisation is its highly successful
investment in Amadeus, which generated a 7x return for investors.
Cinven has offices in Guernsey, London, Paris, Frankfurt, Milan, Hong Kong and
Luxembourg. Cinven Capital Management (V) General Partner Limited is authorised
and regulated by the Guernsey Financial Services Commission. Cinven Partners LLP
is authorised and regulated by the FSA.
Cinven acquires successful high quality companies. Using proven value creation
strategies, we work closely with these companies, helping them to grow and develop.
Cinven takes a responsible approach towards its portfolio companies, their
employees, suppliers, local communities, the environment and society.
Prezioso Technilor (www.prezioso.fr) provides services to:
o The oil and gas sector
o The nuclear industry (mainly production)
o Infrastructures (including water treatment, tunnels and bridges)
Prezioso’s key services are:
o Blasting and surface preparation
o Passive fire protection
o Concrete resurfacing / demolition
o Access solutions and logistics
Prezioso employs over 2,700 employees and is a leading provider of coating and
insulation services which maintain vital industrial infrastructures in the energy and
infrastructure sector. Prezioso’s services are critical to protecting the integrity of off-
shore oil and gas and nuclear installations. Our areas of excellence, bolstered by a
strong commitment to Health, Safety, Quality and Environment requirements, are
mainly evident in projects where access is difficult (offshore campaigns, nuclear sites,
work in the mountains).
Our strategic targets are as follows:
o Diversification of our markets by deploying our knowledge from the oil industry
to the gas industry (gas liquefaction trains, LNG terminals), as well as from
production to upstream and downstream operations in the nuclear industry
o Geographical diversification through the development of our international
o R&D of innovative techniques on the environment
o Development of employment and skills