Buyout Investments

IRM

Activity

Based in Luçon (in the Vendée) and founded by Mister Jean Tessier, the IRM group (Idéal Résidence Mobile) is the French leader in the production and sale of mobile homes.
A pioneer in the market, the group has increased sales over the last 10 years at an average rate of 25%. Based on an aggressive sales strategy, high quality and innovative products, the competence of its management and an efficient business organization IRM’s market share has risen from around 6% in 1993 to 30% today. The IRM group produces more than 7,500 mobile homes at its 4 production sites in France and in the year 2005-2006 posted revenues of €108 million with an EBITDA margin of more than 11%. The group employs around 550 people.
The IRM product range falls into two categories: (i) “rental” models intended for camp sites and tour operators who rent mobile homes to individuals for seasonal holidays;(ii) “residential” models intended for individuals who use their mobile home as a second residence.

Context

In 1999, IRM was bought out in an MBI by 3i, the investment fund, in association with a team of outside managers. When the outside managers committed a number of major strategic errors, former director and founder, Jean Tessier, in association with a new Managing Director, Patrick Mahé, took back the management of IRM to redress the situation. During 2003, the AXA Private Equity Fund team approached the management team to mount a secondary LMBO transaction led by Patrick Mahé.

Strategy

By introducing new products and services, strategy consists in consolidating market share won in the French customer base and the pursuit of the group’s development in the foreign customer base. So export markets will be boosted, notably in the Benelux countries, Great Britain or certain countries along the Adriatic coast. A new production facility in France is planned and opportunities for external growth, in France or abroad, will be studied. The objective is to become the uncontested leader in Europe with an annual production of 10,000 mobile homes in 2006.

Divestment

In March 2007, AXA Private Equity Fund oversaw the sale of IRM to Beneteau Group. Beneteau Group, owner of the O’Hara company, thus reinforced its “mobile homes” division. The new group will generate revenue of more than €150 million with an annual production of around 10,000 units. Created in a market that is becoming more professional with the increased presence of camping site chains, the transaction will enable the new IRM-O’Hara group to become number two in Europe.