Equistone to acquire Orfite’s majority stake in GSCM

Equistone has agreed to acquire a majority stake in GSCM from Orfite.

Equistone has agreed to acquire a majority stake in GSCM from Orfite. No financial terms were disclosed. As a result of this transaction, Equistone will hold a majority stake in GSCM, alongside the management team and BNP Paribas Développement, who also reinvested in this funding round. GSCM Group is a modular construction specialist.

PRESS RELEASE

Paris, July 19, 2021 – Equistone Partners Europe (“Equistone”), a leading mid-market European private equity firm, today announces that it has entered into an exclusive agreement with Orfite to acquire its majority stake in the GSCM Group (“Groupe Solfab Constructions Modulaires”), a modular construction specialist.

Through this transaction, Equistone will hold a majority stake in GSCM, alongside the management team and BNP Paribas Développement, who also reinvested in this funding round. Fuelled by strong organic growth and strengthened by three successful acquisitions between 2015 and 2019 (Decortes, Bodard and CNSE), GSCM continues to consolidate its position as an established player within the French modular construction market.

GSCM’s services include designing, manufacturing, selling, transporting and installing modular buildings of all sizes. Leveraging an extensive national footprint, GSCM prefabricates modules in five production sites across France – in Nantes, Les Sables-d’Olonne, Metz and Lyon (x2) – and transports them to on-site locations where they are assembled, where required, and installed. Modular construction distinguishes itself from traditional construction via quicker and more reliable delivery, and limited construction costs without compromising on thermal and acoustic insulation or energy efficiency standards. With its use of low-carbon materials, GSCM’s buildings already meet the objectives of the new RE2020 standard, which aims to reduce the environmental impact of new buildings by taking into account all carbon emissions over the building’s life cycle from the moment of its construction to its end of life. The Group, which reported revenues of €67.7 million in 2020, currently employs over 300 people.

Equistone will support the Group in developing its growth strategy and goals in both temporary (i.e. building site facilities) and permanent segments by providing new applications to clients. Equistone’s recent experience with Oikos Group, a German leader in prefabricated housing, positions the firm to play an active role in supporting the implementation of GSCM’s industrial improvement plans.

Eric Aurenche, CEO of GSCM Group and President of the Association of Industrialized Construction (Acim), said: “We are pleased to team up with Equistone. With their support and experience, we intend to pursue our ‘buy-and-build’ strategy and continue to grow in the permanent segment. ”

“We were impressed with GSCM’s growth under Orfite’s ownership. GSCM’s unique position in a buoyant market, coupled with the expertise of its leadership and teams, makes us very confident in the Group’s future. We are committed to supporting GSCM as it builds on this momentum by seizing all organic and external growth opportunities,” added Stanislas Gaillard and Thierry Lardinois, Partners at Equistone.
This acquisition rounds out a particularly active first 2021 half of the year for Equistone’s Paris-based team, following the firm’s exits from Adista and Charles & Alice and around ten bolt-on acquisitions carried out in France and worldwide.

About Equistone Partners Europe Limited
Equistone is an independent investment firm wholly-owned and managed by its executives. The company is one of Europe’s leading investors in mid-market buyouts with a strong, consistent track record spanning over 40 years, with more than 400 transactions completed in this period. Equistone has a strong focus on change of ownership deals and aims to invest between €25m and €200m+ of equity in businesses with enterprise values of between €50m and €500m. The company has a team of over 40 investment professionals operating across France, Germany, Switzerland and the UK, investing as a strategic partner alongside management teams. Equistone is currently investing its sixth buyout fund, which held a final closing at its €2.8bn hard cap in March 2018.

Equistone is authorised and regulated by the Financial Conduct Authority. Further information can be found at www.equistonepe.com.