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2022-08-2
Press Releases

IK Partners has its GHG emissions reduction targets validated by the Science Based Targets initiative

IK Partners (“IK”) is pleased to announce that its greenhouse gas (“GHG”) emissions reduction targets have been validated by the Science Based Targets initiative (“SBTi”). These targets are consistent with the levels required to meet the Paris Agreement goals and limit global warming to 1.5°C.

Climate change is a global threat posing significant risk to the global economy, people and environment. The latest report published by the Intergovernmental Panel on Climate Change warns that global warming is on track to reach 1.5°C during the next two decades. However, the report also emphasises that there is an opportunity to limit the temperature increase. This would require synergy in action of multiple stakeholders and a drastic reduction in global emissions to half by 2030 and achieving net zero by 2050. Setting science-based targets (“SBTs”) provides clear guidance around emission reductions aligned with the climate science and sends a powerful message to peers and the industry regarding decarbonisation.

IK has committed to:

  • Reducing absolute Scope 1 and Scope 2 GHG emissions by 54% by 2030 from a 2019 base year; and
  • In Scope 3 (portfolio target) achieving 26% of its eligible private equity (“PE”) investments by invested capital setting SBTi-validated targets by 2026 and 100% by 2040 from a 2021 base year.

In light of this new milestone in IK’s environmental, social and governance (“ESG”) journey, Christopher Masek, Chief Executive Officer, said: “I am delighted that IK is amongst the leading PE firms that have had their SBTs approved by the SBTi. This measurable commitment will be an important part of our approach to ESG integration and will support the continued success of both our firm and portfolio companies, beyond financial metrics, thereby enabling us to continue delivering superior returns to our investors.”

Jovana Stopic, ESG Manager, added: “It is clear from recent research that action to reduce the catastrophic impacts of climate change is overdue and must be accelerated. We recognise that businesses like ours can play a key role in this transition and SBTs are an important element in preparation for the business challenges and opportunities related to decarbonisation.”

ENDS

Disclaimer

Any greenhouse gas emissions reductions, diversity, equality and inclusion, ESG or impact goals, targets, commitments, incentives or initiatives outlined in this document have not been established for any particular fund or investment strategy, are not binding on investment decisions or the management or stewardship of investments for the purposes of Regulation (EU) 2019/2088 and do not constitute a guarantee, promise or commitment regarding any actual or potential ESG impacts or outcomes associated with investments made by funds managed and/or advised by IK Partners, unless otherwise specified in the relevant fund documentation. IK Partners has established, and may in the future establish, ESG or impact goals, targets, commitments, incentives or initiatives, including but not limited to, those targeting greenhouse gas emissions reductions, diversity, equity and inclusion or alignment with the UN Sustainable Development Goals. Any measures implemented in respect of greenhouse gas emissions reductions, diversity, equality and inclusion, ESG or impact goals, targets, commitments, incentives or initiatives may not be implemented in respect of or may not be immediately applicable to the investments of every fund managed and/or advised by IK Partners and any implementation may be overridden or ignored at the sole discretion of IK Partners.

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2022-07-28
Press Releases

IK Partners enters exclusive negotiations to sell Exxelia to HEICO

IK Partners (“IK”) is pleased to announce that an affiliate of the IK VII Fund (“IK VII”) has entered into a put option agreement to sell its stake in Exxelia (“the Company”) to global aerospace business HEICO Corporation (NYSE: HEI and HEI.A) (“HEICO”).

Founded in 2009 from the merger of five long-established companies and headquartered in Paris, France, Exxelia is a leading manufacturer of complex passive components and precision subsystems for niche highly demanding industrial markets (defence, space, aviation, energy, transport, medical and telecommunications) where product reliability and superior performance is of utmost importance. Exxelia is recognised for its ability to design standard and custom products meeting complex technical specifications and the most stringent qualification procedures.

The Company operates from 11 manufacturing sites with more than 2,100 employees and serves blue-chip customers in more than 50 countries. It offers a comprehensive product range (capacitors, inductors, resistors, filters, position sensors and rotary joints) embedded into many programmes in partnership with its blue-chip customer base.

Since IK investment in Exxelia in 2015, the Company has successfully executed its strategic agenda, implementing an ambitious operational transformation plan and expanding its product portfolio and geographical reach through M&A. With the support of its new shareholder, Exxelia will be able to strengthen its operational excellence and innovation capabilities, pursue its international organic and M&A growth strategy and accelerate its development.

Paul Maisonnier, CEO of Exxelia, commented: “We are excited to embark on a new stage of development with HEICO. We really appreciate the values of the Mendelson Family, which match perfectly those of Exxelia. Our goal to develop Exxelia into a world leader in Hi-Rel passive components and sub-systems for harsh environments, serving the aeronautic, defence, space and medical markets will be accelerated under the Heico umbrella. Together we will strengthen our innovation and operational capabilities and accelerate our internationalisation strategy. We thank IK for their support over the past years, which has enabled us to establish a solid platform to support our ambitions for global growth.”

Dan Soudry, Managing Partner at IK Partners and Advisor to the IK VII Fund, and Diki Korniloff, Partner at IK Partners, added: “As shareholders of Exxelia since 2015, we are very pleased to have been able to support its very talented management team through the various stages of transformation, structuring and growth of the Company, doubling its employee base to more than 2,100 people and leading to a strong increase in investment in R&D and in its manufacturing footprint. We’d like to take this opportunity to wish the team and HEICO all the very best for the future.”

Laurans A. Mendelson, HEICO’s Chairman and Chief Executive Officer, along with Victor H. Mendelson, HEICO’s Co-President and CEO of its Electronic Technologies Group, commented: “We are ecstatic that such a fine company, with its remarkable team members, management and products, will be part of HEICO and we look forward to welcoming them to the HEICO family. While furthering HEICO’s strategy of expanding our already impressive range of mission-critical and high-reliability components for the most demanding applications, Exxelia also provides HEICO with added broad geographic and product diversity, including in the important European market.”

Following consultation of employee representative bodies, completion of the transaction would be subject to antitrust and regulatory approvals, notably in France.

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2022-07-20
Press Releases

IK Partners enters exclusive negotiations to sell LINXIS Group to Hillenbrand

IK Partners (“IK”) is pleased to announce that an affiliate of the IK VIII Fund (“IK VIII”) has entered into a put option agreement to sell its stake in LINXIS Group (“LINXIS” or “the Group”) to Hillenbrand, Inc. (NYSE:HI) (“Hillenbrand”).

Founded in 1988 and headquartered in Nantes, France, LINXIS is a leading global supplier of industrial processing equipment and automation solutions for the food, pharma and cosmetic industries.

The Group consists of six market-leading brands – VMI, Diosna, Shaffer, Shick Esteve, Unifiller and Bakon – with more than 1,100 employees collectively. Cutting edge in-house engineering and R&D capabilities are both key drivers of outperformance versus peers.

Operating various design and assembly facilities in Europe and North America, it serves thousands of customers across 100 countries, specialising in the design, installation and maintenance of mission-critical equipment. LINXIS is organised around three complementary business units: Mixing Technology, Ingredient Automation and Portion Process. Over the years, the Group has cemented its market-leading positions in both Europe and North America, across all three of these units.

IK acquired LINXIS from Equistone in October 2017 and has transformed the Group substantially through add-on acquisitions; Unifiller in 2018 and Laramore, Bakon and Shaffer in 2021. This, coupled with strategically developing the product offering and its cross-selling capabilities and the introduction of an operational excellence programme, has allowed for significant growth and global expansion.

Tim Cook, CEO of LINXIS Group, commented: “We are delighted to have enjoyed a successful partnership with IK, which has seen LINXIS grow significantly since 2017. The additional financial firepower and market expertise brought by the IK team has allowed us to pursue a number of inorganic growth opportunities and expand the business on a global scale. We look forward to continuing our growth trajectory in partnership with Hillenbrand.”

Rémi Buttiaux, Managing Partner at IK and Advisor to the IK VIII Fund, added: “It has been a pleasure working with the team at LINXIS for the past five years. Through a selective acquisition strategy and the development of several purchasing and aftersales initiatives, we were able to support the excellent management team led by Tim Cook (CEO) and Didier Soumet (Chairman) and drive significant growth for the business. We wish them well for the future.”

Kim Ryan, President and CEO of Hillenbrand, said: “LINXIS will continue to build upon our profitable growth strategy by further strengthening and accelerating our position in the attractive food end market and enhancing the technical capabilities of our products and service offerings. By leveraging the combined capabilities of our Coperion brand and the LINXIS brands, we will be able to offer more comprehensive processing solutions, creating significant value for our customers.”

For further questions, please contact:

IK Partners
Vidya Verlkumar
Phone: +44 (0) 7787 558 193
vidya.verlkumar@ikpartners.com

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2022-07-12
Press Releases

IK Partners to acquire stake in IG&H

IK Partners (“IK”) is pleased to announce that the IK IX Fund (“IK IX”) has reached an agreement to acquire a majority stake in leading Dutch consultancy and technology firm IG&H (“the Company”) from its founding management team who are reinvesting alongside IK. Financial terms of the transaction are not disclosed.

IG&H is a Dutch digital transformation specialist with an end-to-end service offering, including consultancy and advisory, data analytics, low code application development and digital solutions based on proprietary intellectual property. IG&H serves clients in selected industry verticals, including pensions, banking, insurance, retail and healthcare.

The Company is headquartered in Utrecht, the Netherlands and employs 350 people with additional locations in Lisbon, Porto and Munich – a newly established office to serve the DACH market. Following its development to full digital transformation in recent years, the Company has more than doubled its number of full-time employees and nearly doubled revenues since 2018.

IK’s extensive experience in the Business Services sector and its international market expertise will allow the investment team to support IG&H’s domestic and international growth plans through the acceleration of M&A projects in a fragmented market and the continued scale up of existing services. The business is well-positioned to provide solutions for a challenging retail environment, as well as improving its already impressive client base in the financial services sector.

Jan van Hasenbroek, CEO of IG&H, commented: “This is an extremely exciting time for IG&H as we continue to build on our market-leading position in digital transformation services and sector solutions. The support of IK, with their deep market expertise and pan-European presence, will allow us to support our clients better and pursue further international expansion and solidify our position in both the Benelux and DACH markets.”

Norman Bremer, Partner at IK and Advisor to the IK IX Fund, added: “IG&H has recorded impressive growth in the digital transformation market with the expert guidance of an experienced management team under Jan van Hasenbroek. We are looking forward to supporting the company in future growth plans through consolidation of a fragmented European marketplace and continued expansion in a growing addressable market.”

Completion of the transaction is subject to regulatory approval.

For further questions, please contact:

IK Partners
Vidya Verlkumar
Phone: +44 (0) 7787 558 193
vidya.verlkumar@ikpartners.com

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2022-07-4
Articles

Winner’s Q&A: IK Partners

IK’s CEO Chris Masek, discusses how long-standing initiatives at the firm led to impressive achievements in 2022, and have also prepared it well for the years to come.

What achievements are you proudest of from the past year?

Winning Pan-European House of the Year at the Private Equity Awards 2022 and being recognised by our industry was such a proud moment for us. Beyond a prestigious trophy, last year was the culmination of an outstanding period covering many important milestones. We had a record year of fundraising, portfolio performance and returns to investors, and expanded internationally, opening our New York office for IR and fundraising and launching our UK mid cap strategy.

We also rebranded to IK Partners, a subtle name change that better reflects our current momentum and strategy of pursuing “People-First Private Equity”. I could not have been prouder of our own people and the immense talent IK boasts. We were also honoured to promote five colleagues to the partnership recently, some of whom started their private equity careers with us and are a testament to how investing in your own teams can add value to the wider group.

What has set you apart from your competitors over the past year?

The last year has seen us bearing the fruits of our unique approach that we have been fine-tuning for over 30 years, partnering with growing companies and supporting them as they scale up and expand into new markets by combining proactive buy-and-build strategies with operational improvements.

We focus on businesses in Benelux, DACH, France, Nordics and the UK, concentrating on business services, healthcare, consumer and industrial sectors. Typically we will have already identified a series of strategic add-ons before a new investment is even signed, giving us an edge with competitive deals and enabling us to accelerate companies’ growth strategies and our exit opportunities.

Our seven European offices are all supported by IK’s capital markets, operations and ESG teams so while our platform investments are sourced through our experts in local markets, the portfolio benefits from the combined resources available across IK. This makes life easier for management teams and helps us drive superior returns as we take advantage of the collective skills across the group.

How have you maintained strong investment and exit activity over the past year despite the ongoing challenges of the pandemic?

Our people-centred approach and clear investment strategy helped drive strong investment returns. The priority at the time was safeguarding the health and welfare of our employees and the 35,000 people across the portfolio. Our operations team really came to the fore and worked tirelessly to mitigate the impact – from making initial impact assessments to the development and implementation of recovery plans. IK’s long-standing and disciplined investment criteria ensured a resilient portfolio capable of operating through economic turbulence. We continued the planned exits on our original timetable and were well placed to execute on several exciting investment opportunities that became available.

IK also conducted an impressive fundraising round. How did you manage this?

Throughout all the disruption, we have raised over €4.3bn since the first lockdown across our mid cap, partnership and small cap strategies. We held fully virtual fundraising processes, with our IR team building strong relationships with both new and existing LPs.

Our track record of delivering impressive returns is clearly an important factor, but so too is maintaining the “client experience” to ensure that existing LPs feel confident in returning to us for future funds. This is where our IR and communications teams come in, as their ability to articulate our strategy, respond to investors’ needs, and update on developments helps build the confidence among LPs to continue investing with IK.

What single deal from the past year best sums up your particular approach and its strengths?

BST, the fire protection services provider, is a great example of what IK does best. We first invested in 2019 when the company only had a presence in Sweden. By the time we exited in 2021 the company had expanded to Denmark and Norway, built out new finance, HR and sales functions with the support of our operations team, and grown revenues threefold. In just three years, BST went from an entrepreneurial small cap player in Sweden to a market-leading mid cap champion across Europe.

What are your predictions for the coming year?

We are clearly in a changing environment with inflationary and supply chain pressures increasing, to which labour churn, wage inflation and social unrest should be added, with the backdrop of rising interest rates and increased difficulty to access new capital. We believe demonstrating liquidity will be key with Jerry Maguire’s proverbial “show me the money” taking the lead over the hubris of paper valuations. We equally believe that focusing on developing portfolio companies, securing conservative balance sheets, and keeping an eye on churn and inflation to deliver growth will be tantamount to delivering further liquidity. 

We believe there will be attractive investment opportunities at more reasonable multiples using more rational baseline metrics (cash EBITDA rather than multiples of ARR) with conservative financing. Finally, the most determining change in our industry will be accessing new capital. Investors will be taking their time to consider which strategies are the winning ones in this new environment where we see a move towards quality and tangible performance as the key differentiator. We believe our firm has long been prepared for this and will thrive in this new paradigm. 

This article was first published in Real Deals on 30 June 2022 and was written by Hannah Langworth.

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2022-06-23
Press Releases

Safic-Alcan, together with six private equity funds, announces the start of a new entrepreneurial project

The executive team of Safic-Alcan, together with their existing private equity funds partners, namely EMZ partners, Sagard and Société Générale Capital Partenaires are pleased to announce the start of their next project.

All three historical partners will continue to invest alongside the management and will be reinforced by three new private equity funds, namely Equistone, IK Partners and GENEO Capital Entrepreneur.

This transaction constitutes a new phase in the development of Safic-Alcan, that attained a new milestone at the end of 2021, by reaching a turnover of €725 million. Safic-Alcan will continue to be majority-owned by its management and employees.

Yann Lissillour, CEO of Safic-Alcan since April 2022, declared: “We are delighted to continue our entrepreneurial project with our long-term partners EMZ, Sagard and SGCP and to welcome our new additional partners Equistone, IK and GENEO Capital Entrepreneur. We believe we have an extremely solid line up, that will provide the backbone of our ongoing future growth and the independence of our Group is further assured.”

Antoine Ernoult-Dairaine (Sagard) and Thierry Raiff (EMZ) added: “We are very happy to renew our long-term involvement alongside Safic-Alcan for a new chapter of its successful development worldwide. We would like to deeply thank Martial Lecat for his exceptional contribution over the past years we spent together and are very confident that Yann Lissillour and his team will reaffirm the leadership of Safic-Alcan on its various lines of business”.

Guillaume Jacqueau (Equistone) and Thomas Grob (IK Partners) added: “We have been following Safic Alcan’s impressive journey for a long time and are extremely excited to work alongside its management team over the next few years. We look forward to assisting them with the Company’s continued development and supporting their ambitious growth strategy”.

Marc Diamant (SGCP) et François Rivolier (GENEO Capital Entrepreneur) added: “We have built a strong relationship with Safic Alcan’s management team over time and we are very honored to be part of this new growth cycle together with solid and performing managers and financial partners”.

About Safic-Alcan

About Safic-Alcan is a French independent distributor of specialty chemicals headquartered in Paris La Défense (France). The Company develops and provides wide ranges of polymers, materials and additives for the rubber, coatings, adhesives, thermoplastics, polyurethane, lubricants, detergency, cosmetics, pharmaceuticals, and nutraceuticals industries. With a network of 32 offices strategically located in Europe, Turkey, Middle East, North America, Mexico China and South Africa, the company represents state-of-the art manufacturers around the world. Its highly specialized sales engineers allow Safic-Alcan to provide dedicated technical expertise and high-performance solutions thus creating long term partnership with most of its principals and customers. Safic-Alcan employs 697 people worldwide and generated a turnover of 725 M€ in 2021. For more information, visit www.safic-alcan.com

If you have any questions regarding this announcement, please reach out to one of the key contacts on the PDF of this release.

About EMZ

EMZ is an independant specialist fund investing alongside leading company managers willing to acquire or consolidate the control of their capital. With 15 investment professionals based in Paris and Münich, EMZ has invested in more than 150 transactions since 1999. First investment in Safic-Alcan was done in 2007. Team members in charge of the deal: Thierry Raiff, Ajit Jayaratnam, Ludovic Bart, Mathieu Barlet. For more information, visit www.emzpartners.com

About Sagard

Sagard is a French investment fund that provides equity capital to support the development of mid-sized companies led by ambitious management teams. Founded in 2003 with the support of the Desmarais family, Sagard’s investor base comprises leading industrial families as well as blue chip institutional investors. Since its inception, Sagard and its Paris-based team of 12 professionals have invested in 40 industrial and service companies in France. The Sagard team comprises Antoine Ernoult-Dairaine, Maxime Baudry, Charlotte Kitabgi and Nasser Bounjou. For more information, visit www.equity-partners.sagard.eu

About Société Générale Capital Partenaires (SGCP)

For more than 30 years, Société Générale Capital Partenaires (SGCP) has supported founders and managers of SMEs through a proactive and close relationship. SGCP takes minority stakes in the capital of companies, for amounts between € 1mln and €35mln in various contexts: new phase of development, shareholder restructuring, optimization of the financial structure, transmission. Every year, the SGCP teams, based in Paris, Lille, Strasbourg, Lyon, Marseille, Bordeaux and Rennes, invest more than a hundred million euros in some fifteen operations, confirming their long-term commitment to financing companies and the economy. For more information, visit www.capitalpartenaires.societegenerale.com                                                                                     

About Equistone Partners Europe Limited

Equistone is an independent investment firm wholly-owned and managed by its executives.
The company is one of Europe’s leading investors in mid-market buyouts with a strong, consistent track record spanning over 40 years, with more than 400 transactions completed in this period. Equistone has a strong focus on change of ownership deals and aims to invest between €25m and €200m+ of equity in businesses with enterprise values of between €50m and €500m. The company has a team of over 40 investment professionals operating across France, Germany, Switzerland and the UK, investing as a strategic partner alongside management teams. Equistone is currently investing its sixth buyout fund, which held a final closing at its €2.8bn hard cap in March 2018, and has recently launched the Equistone Reinvestment Fund, with a mandate to make minority re-investments alongside new sponsors following a portfolio company exit from one of its main buyout funds.

Equistone is authorised and regulated by the Financial Conduct Authority. For more information, visit www.equistonepe.com

About GENEO Capital Entrepreneur

The purpose of GENEO Capital Entrepreneur is to provide small and mid-caps with positive finance and reveal their full potential of value creation and impact.

With 600meuros under management, including through an evergreen equity investment company, GENEO is a business partner able to provide tailored equity solutions and pursue ambitious strategies over time. Our team is structured to provide operational support and expertise, with dedicated human resources for M&A, digitalization, innovation, CSR and impact, and a pool of more than 70 specialists. Our investors, including financial institutions and more than 200 entrepreneurs and families, form a real “GENEO Community” willing to share experience and business networks. When we invest, we commit! For more information, visit www.geneocapitalentrepreneur.com

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