The Carlyle Group

Canaccord Genuity acts as financial advisor to Carlyle Europe and PAI Partners on their disposal of Crouzet to LBO France

Canaccord Genuity is pleased to announce that on 23 October 2017, its clients The Carlyle Group and PAI Partners reached a definitive agreement with LBO France in respect of the disposal of Crouzet (“the Company”), a global player with wide range of switches, motors and automation products serving diversified industries. The transaction values the Company at c.€200m.

Founded in 1921 and today comprising approximately 1,200 employees, the Company serves diversified end-markets, including aerospace & industry, transportation, energy & infrastructure and other industries, through 3 principal production sites (France, Morocco, China). In 2016, Crouzet generated €136 million in sales, 74% of which outside France including Europe (46%), North America (13%) and Asia (11%).

After 15 years of successive integrations within larger groups (such as Schneider Electric and CST) and being operated as a non-core business, the Company has undergone a transformation since 2016 around 3 main priorities: 

• Strategic refocus on core activities, customized and high-end components as the group benefits from a better positioning and a recognized expertise and track record in niche markets; 

• Implementation of a restructuring of certain back-office functions and realignment of the organization on core activities; 

• Optimization of the sales organization for higher efficiency based on sale performance and maximizing cross-selling between business units

Facilitated by a refinancing launched in March 2017, Canaccord Genuity, with the agreement of the shareholders, organised meetings between the management and a number of Private Equity funds. LBO France was able to deliver a pre-emptive offer in September and reach an agreement with the shareholders in October.

This transaction further reinforces Canaccord Genuity’s relationship with The Carlyle Group and PAI Partners as well as our credentials in the Aerospace and Defense sector.