AXA Private Equity arranged an LMBO of IRM Group from 3i and the Tessier family Paris, Tuesday January 20, 2004

AXA Private Equity completed the LMBO of IRM (Ideal Residence Mobile), France’s leading manufacturer and distributor of mobile homes, in association with the company’s management, headed by Patrick Mahé, and several regional financial partners.

IRM was founded by Jean Tessier and is based in Luçon (Vendée). The group has four production sites in France and reported 2002-03 sales of € 89 million, with an operating margin in excess of 10%.

IRM pioneered the mobile home market, and has posted 25% average annual sales growth over the past ten years. Thanks to an aggressive marketing strategy, innovative and high-quality products, a skilled management team and efficient production processes, IRM has increased its market share from around 6% in 1993 to 30% today.

It has a promising growth outlook—new products and services in the pipeline, penetration of foreign markets (which already account for 25% of IRM’s sales), etc. IRM is also ready to consider M&A opportunities in France and abroad. AXA Private Equity intends to make the funds needed available to finance these build-up opportunities, as and when required.

The private equity fund 3i, previously IRM’s majority shareholder alongside the Tessier family, has supported IRM’s growth since 1999.

Following the LMBO, AXA Private Equity’s LBO fund, AXA Private Equity Fund II, holds 73% of the group’s capital. Patrick Mahé and his management team will own 17% and the regional financial partners (Océan Participations, Synergie Finance, Ouest Croissance and CIO-Financière Ar Men), 10%.

Senior and operating debt has been co-arranged by IKB, Crédit Industriel de l’Ouest (CIO) and Crédit Mutuel de l’Ouest (CMO). Mezzanine debt has been arranged by Mezzanis Fund and IKB.

This deal represents the tenth investment by AXA Private Equity Fund II, a € 400 million fund launched in 2001 and currently over 65%-invested. The AXA Private Equity Fund II specialises in taking majority stakes in companies valued between € 30 million and € 300 million via LBOs.

For further information: www.irm-sa.fr

Deal participants

AXA Private Equity (Dominique Gaillard, Mathieu Antonini, Eric Neuplanche)
Océan Participations (Philippe Bricault)
Synergie Finance (Yves Turpault)
Ouest Croissance (Gérard Bodiguel)
CIO-Financière Ar Men (Michel Pestel, Isabelle Mathis)
3i (Laurent Savinelli, Mathieu Blanc, Tristan Parisot)

AXA Private Equity’s advisors:

• Legal and tax advice and due diligence: Cabinet Sokolow, Dunaud et Carreras (Jean-François Carreras, François Fabiani)
• Accounting and financial due diligence: Constantin (Jean-Paul Séguret, Isabelle de Barstch)
• Market due diligence: CIL (Sophie Souchon, Sophie Lion)
• Insurance due diligence: Cabinet Bessé (Christophe Parizot)

Sellers’ advisors:

• Legal advisers to 3i: Cabinet Orsay (Samira Friggeri, Patrick Douin)
• Legal advisers to the Tessier family: Cabinet Cornet, Vincent et Ségurel (Didier Lacroix, Mathieu Guignard)
• IKB (Carole Bonart, Daniel-Roger Marker)
• CIO (Michel Pestel, Isabelle Mathis)
• CMO (Didier Jalabert)
• Mezzanis (Dominique Fouquoire)

Advisors to the banks and arrangers of Mezzanine debt:

• Simmons & Simmons (Colin Millar, Marc Chaudet, Marie Séguret)