European Capital has invested €30 million in Compagnie Europeenne de Prestations Logistiques, a European logistics company focused on the outsourcing of automated multi-product order preparation. The deal values at CEPL at between €550 million and €600 million.
European Capital Limited (LSE: ECAS) (“European Capital”), announced today that its subsidiary ECAS S.a.r.l. has invested euro 30 million (US$43 million) in Compagnie Europeenne de Prestations Logistiques (“CEPL”), a leading European logistics provider specialized in the outsourcing of automated multi-product order preparation (“Detailed Picking”). The investment was led by the Paris office of European Capital Financial Services Limited (“European Capital Financial Services”) and supports the acquisition of the company by Arcapita Bank B.S.C.(c) and its affiliates. CEPL management also significantly invested in the company, valued in the euro 550 million to euro 600 million range.
“We are very excited to support CEPL, which has a unique and recession-resistant business model in the logistics sector in Europe,” said Jean Eichenlaub, Managing Director Southern Europe, European Capital Financial Services.
“CEPL has benefited from being a first mover in its market. The highly successful and entrepreneurial team led by Thierry Ortmans, CEO and founder, and Akim Lamrani, COO, already manages a network of 23 fully automated sites, all of which are equipped with a single IT system and automated preparation lines capable of shipping a large number of small-volume, multiple-SKU orders to multiple client locations within 24 hours,” said Tristan Parisot, Director, European Capital Financial Services.
European Capital has invested euro 357 million (US$516 million) year to date and euro 3.3 billion (US$4.8 billion) since inception. European Capital has raised over euro 2.4 billion (US$3.5 billion) in capital including euro 1.3 billion (US$1.9 billion) in debt and euro 1.1 billion (US$1.6 billion) in equity and realised euro 1.1 billion (US$1.6 billion) from committed capital. For more information about European Capital’s portfolio, go to http://www.EuropeanCapital.com/our_portfolio/portfolio.html
“CEPL enables clients to fully outsource non-core logistics functions including warehouses and related employees. They also benefit from lower costs as other clients are integrated onto optimized platform sites in order to spread fixed costs, smooth out seasonality and enhance productivity with an improved picking success rate,” said Alexandre Bruyelle, Manager, European Capital Financial Services.
“CEPL, which is well positioned to benefit from the increased outsourcing trend, is one of the best assets on the French LBO market,” said Guillaume Peroz, Manager, European Capital Financial Services. “CEPL’s clients include branded-product companies like Guerlain, and specialized distributors like Marionnaud, operating in the perfume and cosmetics, textile, consumer electronics and sports industries.”
Founded in 1998, CEPL employs 2,200 staff in 23 sites across France and Germany. Since 2001, sales and EBITDA grew at 27% and 30% CAGRs, respectively. With only 20% of Western European detailed picking sites outsourced, CEPL has a strong growth potential in France, Germany, Benelux, Spain and Italy.
“The management of CEPL is very pleased to partner with Arcapita and mezzanine lenders ICG and European Capital and is looking forward to expanding the business thanks to the combined network of our three new international partners,” said Mr. Ortmans.
“Management plans to double the size of the company over the holding period,” said Manuel Barbieux, Principal, Arcapita. “We rely on European Capital’s and ICG’s commitments to support the ambitious development plan of CEPL.”
ABOUT EUROPEAN CAPITAL
European Capital is a publicly traded investment company for pan-European equity, mezzanine and senior debt investments with current capital resources of approximately euros 2.4 billion (US$3.5 billion). It is managed by European Capital Financial Services (Guernsey) Limited (“ECFSG”), a wholly-owned affiliate of American Capital, Ltd.
European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and public companies headquartered predominantly in Europe. European Capital generally invests between euros 5 million and euros 500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.
The investment objective of European Capital is to provide investors with dividend income and the potential for share value appreciation by investing in debt and equity investments in private and public companies headquarte