Vivendi Environnement and AXA Private Equity complete LBO of Bonna Sabla Paris, Friday December 6, 2002

Vivendi Environnement and AXA Private Equity have completed exclusive negotiations on Vivendi Environnement’s sale of Bonna Sabla, a subsidiary of Vivendi Water, to AXA Private Equity, one of the market leaders for investment in unlisted companies.

The deal forms part of Vivendi Environnement’s previously announced sell-off of non-core assets.

Bonna Sabla is France’s leading manufacturer of concrete products. It operates principally in public sector projects (water supply, wastewater treatment, civil engineering, urban environment, railway sleepers) and has a market share of around 30% thanks to a highly developed local network covering the whole of France. It also has a presence in the UK, Spain, Tunisia and Egypt. In 2001, Bonna Sabla made sales of  € 405 million, of which 25% were outside France.

Under the terms of the deal, Vivendi Environnement is to keep 20% of the capital. AXA Private Equity and its Italian private equity partner, B&S Private Equity Group, take the other 80%, part of this being reserved for the management.

In concluding this deal, AXA Private Equity acted in partnership with entrepreneur Philippe Milliet who will take over the chairmanship of Bonna Sabla. Mr Milliet was previously a member of the Executive Committee of Ciments Français where, among other achievements, he developed the group’s North American subsidiary including setting up a concrete manufacturing operation. With the acquisition of Procoves, he successfully conducted an MBI between 1993 and 1998.

Additional information: www.bonnasabla.com

About Vivendi Environment

Vivendi Environnement (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. It operates across five continents providing custom solutions to industry and municipalities in four complementary fields: water, waste, energy and passenger transportation. Vivendi Environnement sales in 2001 were € 29.1 billion.

About B&S Private Equity

B&S Private Equity Group is Italy’s leading independent private equity house, investing in industrial and service companies. It carries out management buy-outs and buy-ins, backing managers with proven experience and the determination to be successful entrepreneurs.
B&S also provides development capital to unlisted companies looking to grow by acquisition.

B&S Private Equity Group operates its investment business through its Italian Private Equity Fund III (IPEF III) which has € 300 million under management.
This deal is the Italian group’s first venture in France.