Kermel is the leading European manufacturer of meta-aramid fibre for protective clothing and industrial applications.

The company targets three sectors that account for more than 90% of group sales: fire services, military & public order and industrials.

Kermel® Tech is used in a large variety of industrial applications where end users or intermediaries require long-lasting heat resistant materials. Here, the company concentrates on two main niche areas: hot gas filtration, which removes dust from smoke, and engine insulating papers, which prevent overheating.

VALUE CREATION

During the investment period, Kermel significantly increased its production capacity and the group successfully diversified into new segments and geographies.

EXIT

Equistone sold its investment in Kermel to Qualium Investissement.

APEM is one of the global leading manufacturers of switches, keyboards, joysticks or LED indicators.

APEM products have various applications in the transport, defence, industrial automation, instrumentation, medical, telecommunication and aerospace industries.

The company has activities in France, UK, Denmark, Sweden, Italy, in the US, in China, and Tunisia and generated 67% of its sales outside of France

VALUE CREATION

Equistone worked alongside the management team to develop the business with initiatives such as:

• Backing and funding the acquisition of CH Products in 2008, strengthening the existing industrial and commercial footprint of the group in the US and balancing the activity between Europe, the US and Asia;
• Adding new competencies to support APEM in its growth strategy, which focused on the acquisition of key accounts over the world and as a consequence the progressive consolidation of the group’s many subsidiaries in order to facilitate the provision to its large global accounts of a consistent quality of service;
• Supporting an ambitious improvement program regarding the global logistics and industrial organisation.

EXIT

Equistone sold APEM to its management, backed by Intermediate Capital Group, which has been a minority shareholder in APEM since 2006 and the group’s lead mezzanine provider in the previous management buyout.

Fives (formerly Fives-Lille) is a 100-year-old industrial engineering group which designs and produces manufacturing process equipment. The group primarily operates in the metal, automotive, energy and cement industries, where it is a market leader.

In 2004, the Group was acquired in a secondary MBO led by Equistone with a strategy to expand both through internal and external growth.

Strong organic growth, combined with the acquisition of Landis Grinding Systems, a USA based machine tool business specialising in grinding machines for the automotive industry, enabled group revenue to grow from €700m to €1.1bn between 2003 and 2006.

In July 2006, Charterhouse Capital Partners invested in Fives-Lille. On this occasion, several minority shareholders sold their stake in Fives-Lille and Equistone realised part of its 2004 investment, while remaining a significant shareholder of the group.

VALUE CREATION

Between 2006 and 2012, group revenue grew to c. €1.5bn thanks to internal growth and to five add-on acquisitions, two of which, Namco in July 2008 and Bronx in December 2010, being significant.

EXIT

The financial shareholders sold their stake in Fives to Axa Private Equity, in a deal where the group management reinvested significantly.

Spie batignolles is a leading French player in construction, civil engineering, energy, public works, property development and concessions.

VALUE CREATION

Spie batignolles has shown resilience during the global financial crisis and Equistone has worked in partnership with the management team to develop the business by:
Supporting the acquisition of Eurelec, a specialist in electrical installations with sales of €100m. This acquisition enabled Spie batignolles to develop multi-technical maintenance contracts.
Enabling Spie batignolles to further its expansion programme with the acquisition of Fontelec, electrical installation providers and Valérian, construction and land development.

EXIT

Taking advantage of the company’s strong growth and cash generation, Equistone was able to refinance the business, once in March 2006 and again in October 2007, both of which locked in a strong return for Equistone.

In September 2014, Equistone sold the remaining 20% share of its investment in Spie batignolles to Ardian. In acquiring the company, Ardian has become the new financial partner to the management team who control the company.