Buyout Investments

Icare

Activity

The Icare group is a service and “business to business” insurance group specializing in the automotive sector. It was founded in 1983 and developed under the impetus of its current directors Alain and Jean-Michel Cruchet.
Icare has based its development around two product lines:

• contracts for motor maintenance and servicing,
• contracts for motor warranties (extension of constructor’s warranty for new vehicles and warranties on used vehicles).

Its products are distributed by various operators in the automotive sector including manufacturers, distribution networks, finance organizations and insurers, who then include them in their sales offer. They provide a commercial tool that can promote customer loyalty or protect an asset.

Context

In 1991 the Icare group underwent an initial LBO, successfully completed in 1997 with the complete repayment of the debt resulting from acquisition.
The strong potential for domestic growth of the group and the capacity of AXA Private Equity Fund to give a boost to its international expansion have convinced the present management team to carry out a second LBO, by reinvesting almost their entire profits.

Strategy

Icare’s strategy revolves around two lines:

• pursue product development towards new segments of the market (by inclusion in traditional automobile insurance products),
• duplicate the Icare model in other European countries.

AXA Private Equity Fund contributes to the creation of value by:

• accelerating international development,
• developing synergies with certain insurers.

Divestment

In September 2004 AXA Private Equity Fund and the Icare management team sold a 95% equity stake in Icare SA, the holding company of Icare group, to Europ Assistance Holding, the holding company of Euro Assistance group. Icare group has seen an average growth of more than 20% over the last 10 years. During the period 2000/2004, under the impetus of its management team, led by Chairman Alain Cruchet and its majority shareholder, AXA Private Equity, the group has established itself and expanded in the international market (Italy, Spain, Belgium, Portugal).