IK Partners (“IK”) is pleased to announce that the IK X Fund has entered into exclusive negotiations to invest in Eurofeu Group (“Eurofeu” or “the Group”), a leading player in the French fire protection market. IK is acquiring a majority stake from CAPZA and the management team, who will both be reinvesting. Financial terms of the transaction are not disclosed.
Founded in 1972 in Senonches (Eure-et-Loir, France), Eurofeu installs and maintains fire protection equipment, as well as fire protection systems, for business-to-business (“B2B”) clients mainly. As one of the few market providers in possession of integrated manufacturing capabilities, Eurofeu has a highly differentiated offering. The Group also benefits from a high level of sales recurrence thanks to the maintenance side of the activity, as well as the associated sales of spare parts.
Under CEO Eric Hentgès and with the backing of CAPZA since July 2020, the Group has grown considerably; both organically and via an active buy-and-build strategy. In partnership with IK and with the continued support of CAPZA, Eurofeu has ambitions to leverage its network, salesforce and IT tools at its disposal to drive growth. In addition, the Group plans to expand into other European geographies and drive consolidation.
Completion of the transaction is subject to legal and regulatory approvals.
Eric Hentgès, CEO of Eurofeu, stated: “I have been extremely proud of the progress we have made towards becoming a leading player in the French fire protection market. With CAPZA’s backing since July 2020, we have been able to accelerate organic growth and lead an active M&A strategy, allowing us to expand geographically and broaden the Group’s offering to include equipment with more complex capabilities. We would like to thank CAPZA for their support thus far and look forward to partnering with IK and leveraging their pan-European platform to pursue further expansion.”
Diki Korniloff, Partner at IK and Advisor to the IK X Fund, said: “We have been impressed by Eurofeu’s journey to date and are convinced of the critical and resilient nature of their service offering to a wide base of B2B clients. We are excited to partner with Eric and his team, as well as CAPZA, to support the Group in its next phase of growth, where European expansion will be key. The Group will have access to the full breadth of IK resources and expertise, while also being able to leverage our network of European offices.”
Fabien Bernez, Partner at CAPZA, added: “It has been fantastic to work with Eric and the wider team at Eurofeu over the past few years. Since our investment in 2020, the Group has become a leading player in the French fire safety market; an achievement we are very proud of. We look forward to continuing to support Eurofeu and its management team in the next chapter of growth, alongside IK.”
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