2002: a very good year for AXA Private Equity in French Mid-market LBOs Paris, Tuesday January 7, 2003

AXA Private Equity, one of the market leaders for investment in unlisted companies, confirmed its status as one of the most active mid-market LBO teams in France in 2002, orchestrating three new LBO deals for a combined value of nearly € 200 million.

Its investment in the three new LBOs totalled € 53.1 million. This means AXA Private Equity Fund II (APEF II) was 25%-invested at the end of 2002.

CHAMPEAU:

• France’s leading supplier of wood roof truss systems;
• 2001 sales: € 42.3 million / 2001 EBIT: € 4.3 million;
• Deal closed in September 2002.

CORNHILL FRANCE:

• Niche insurer. Market leader in loss of rental insurance and one of the leading providers of HGV insurance.
• 2001 sales: € 43.4 million / 2001 EBIT: € 4.9 million;
• Deal closed in November 2002.

BONNA SABLA:

• France’s leading supplier of pre-fabricated concrete components for civil engineering projects;
• 2001 sales: € 403.5 million / 2001 EBIT: € 27.3 million;
• Deal closed in December 2002.

The LBO fund specialises in taking majority stakes in companies valued between € 30 million and € 350 million.

The team also successfully sold its stake in Gautier group, France’s leading contemporary furniture group, with sales of over € 140 million. The first-generation fund AXA Private Equity Fund (APEF) more than doubled its initial investment in Gautier in three years, generating a gross internal rate of return of 30%. After the sale, the fund distributed  €130.7 million to its investors, representing 1.58x called-up capital. After total sale of portfolio, global expect multiple should be two on the fund.

Since 1998 AXA Private Equity’s LBO team has arranged or participated in 18 LBOs and carried out 5 exits.