AXA Private Equity sells Titanite to Fonds Partenaires Gestion and to the management for € 64.5 million Paris, Tuesday September 7, 2004

AXA Private Equity’s second generation LBO fund, APEF II, has just made a second exit with the disposal of the Titanite group, tripling the value of the initial investment. This move follows the sale two months ago of Cornhill France to Macif on the basis of an enterprise value of € 96 million that increased the initial investment fivefold. The Titanite group was acquired from family shareholders by APEF II in February 2000.

Over the 2000-2004 period, Titanite’s management team, led by Chairman Daniel Pérot, achieved a remarkable transformation of the company from a family-run business to a well-positioned industrial group, and simultaneously improved its operating margin, by more than 4 percentage points. “This development would never have been possible without the backing of AXA Private Equity” said Daniel Pérot. “AXA Private Equity has proved a first-class partner, giving our group a structure and strengthening our position as number 3 on the French market”.

This secondary LBO was closed by Fonds Partenaires Gestion in conjunction with Titanite’s management team, which secures its 20% stake in the capital. The deal was financed by CIC, which also funded the initial LBO.

With 2003 sales of € 52 million and boasting solid and recurring profits, Titanite is today one of the key players in the manufacturing, distribution and implementation of industrial explosives in France and Belgium, and also France’s market leader in drilling and mining.

The group’s management forecasts a continued rapid pace of growth (with projected 2004 sales of € 58.3 million, up 12% compared to 2003) and plans to play an active part in the consolidation of the European industrial explosives market.

Deal participants

AXA Private Equity: Philippe Poletti, Eric Neuplanche

Conseils vendeurs:

• M&A bank: HR Finances (Pierre Durand de Bousingen, Arnaud Bochet)
• Accounting and fiscal due diligence: E&Y (Samy Rahal, Vassila Boukhlef, Lionel Benant)
• Legal advisors: SJ Berwin (Maxence Bloch, William Robert)

Fonds Partenaires Gestion: Jean Eichenlaub

• Legal advisors: Nomos (Pierre Jouglard)
• Senior bank: CIC (Brice Bourrely)