The Ontario Teachers’ Pension Plan has agreed to acquire a 30 percent interest in OGF, a funeral services provider in France, from Pamplona Capital Management. No financial terms were disclosed. Ontario Teachers said it plans to increase the size of its stake in OGF to 40 percent over time. The initial deal is expect to close this month. Founded 170 years ago, OGF operates a network of 1,000 branches, 468 funeral homes, 53 crematoria, and a brands portfolio from its headquarters in Paris. Pamplona, an alternative investments firm based in London, will remain the majority investor in the business.
Ontario Teachers’ Pension Plan Agrees to Acquire a Stake in France’s Leading Funeral Services Provider from Pamplona Capital Management
September 17, 2015
NEW YORK/LONDON – Pamplona Capital Management (“Pamplona”) and Ontario Teachers’ Pension Plan (“Ontario Teachers'”) today announced that Ontario Teachers’, the largest single-profession pension plan in Canada, has agreed to acquire a significant minority interest in OGF, the leading funeral services provider in France. Pamplona, which remains the majority shareholder, has sold 30% of OGF to Ontario Teachers’, which intends to increase its stake to over 40% over time. The initial transaction is expected to close on 25 September 2015. Terms of the transaction are not being disclosed.
Ontario Teachers’ is a long-term investor that aims to identify unique opportunities and partner with strong management teams. Ontario Teachers’ and Pamplona have a strong working relationship, having partnered and invested in CSC ServiceWorks in 2014.
OGF, founded 170 years ago, presents an attractive investment opportunity with an unparalleled nationwide network of 1,000 branches, 468 funeral homes and 53 crematoria and a portfolio of highly recognised brands. The management team, led by President and CEO Philippe Lerouge, has consistently delivered strong growth and financial performance. The team’s strategy of providing a best in class service, via a uniquely integrated offering across the entire funeral service value chain, has resulted in a 10-year average customer recommendation rate of 97%.
Markus Noé-Nordberg, Partner at Pamplona, commented; “We are delighted to be partnering with Ontario Teachers’, one of the world’s leading investment groups, and we look forward to further developing OGF as the leading funeral services provider in France.”
Jo Taylor, Managing Director of Ontario Teachers’ EMEA commented; “OGF is a leading funeral services provider, with long-term growth potential, that fits Ontario Teachers’ investment mandate perfectly. This investment gives us the opportunity to deploy capital alongside partner that we know well, and be a long term backer to a world class management team. We look forward to support OGF as it continues to deliver the highest service standards and develop its footprint over time.”
Philippe Lerouge, President and CEO of OGF for 15 years, stated; “I am particularly pleased that the Group has attracted a long-term investor like Ontario Teachers’. The profile of this new partner and their decision to invest, demonstrates a clear confidence in the future of OGF and our strategy.”
Founded 170 years ago OGF is the leading provider of funeral services in France and the only fully integrated operator supplying the full spectrum of funeral products including burial and cremation services, monuments and cemetery works, pre-need insurance contracts and coffin manufacturing. OGF is present across France through an unmatched nationwide footprint of 1000 branches, 468 funeral homes, 53 crematoria and a portfolio of highly recognised brands, which include PFG, Roblot, Henri de Borniol and numerous local brands, most of them under the Dignité Funéraire umbrella. Pamplona acquired OGF in October 2013.
About Ontario Teachers’ Pension Plan
The Ontario Teachers’ Pension Plan (“Ontario Teachers'”) is Canada’s largest single-profession pension plan, with $154.5 billion in net assets as of December 31, 2014. It holds a diverse global portfolio of assets, 80% of which is managed in-house, and has earned an annualized rate of return of 10.2% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its European, Middle East and African region office is located in London and its Asia-Pacific region office is in Hong Kong. The plan, which is fully funded, invests and administers the pensions of 311,000 active and retired teachers in Ontario. For more information, visit www.otpp.com and follow us on Twitter @OtppInfo.
About Pamplona Capital Management
Pamplona Capital Management is a London and New York based specialist investment manager established in 2005 that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona Capital Management LLP manages over €6.6 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its fourth private equity fund, Pamplona Capital Partners IV LP, which was raised in 2014 and has total commitments of €3bn. Pamplona invests long-term capital across the capital structure of its portfolio companies in both public and private market situations.
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