CHRISTOPHER MASEK AND DETLEF DINSEL: - IK Investment ...

More documents

Recommendations

Info

EXIT IDEX IDEX EXITS WITH RENEWED ENERGY TO MAXIMISE IDEX’S growth and development potential, IK and the company’s management refocused Idex on its core energy solutions business, introduced a variety of operational improvements and most recently, helped the business embrace the renewable ‘green’ energy market. T he recent successful exit by IK Investment Partners from Idex, France’s largest independent energy and environmental services company, demonstrates how core focus and operational improvements can drive business performance. At the time of IK’s investment in 2004, Idex employed about 2,800 people and generated net sales of €380 million. At IK’s exit point this summer, Idex had some 3,500 employees, net sales of €525 million and had become the number three player in the French energy services market. Idex’s new owner is Cube Infrastructure, the French infrastructure and public services investment fund manager. “At the time of investment we wanted to strengthen Idex’s position as France’s largest independent energy and environmental services company. We therefore refocused Idex on its core activities and pursued dynamic organic growth, while making selective acquisitions to enhance its geographic footprint,” says IK Partner Dan Soudry. “In parallel, we saw a number of opportunities to improve the business’ operational performance such as simplifying Idex’s administrative structure, optimising the rotation of its service teams and centralising its procurement activities. This strategy will continue to help Idex reach its full potential in the coming years, with the company now ideally positioned to take advantage of the growing demand for energy services in France,” he says. “I am really proud of the success Idex has achieved in response to the objectives defined by the management team under the direction of myself and IK,” says Alain Planchot, Idex’s outgoing CEO. “Idex’s development, in terms of its size and professional quality, has also helped reinforce its ability to satisfy future demand for environmentally-friendly energy solutions,” he says. Comprehensive energy solutions Based just outside Paris in Boulogne-Bilancourt, Idex was founded by Alain Planchot’s father, Georges Planchot, in 1963. Originally named Industrial Heating, the company took advantage of the sudden rise in housing development projects across France, supplying heating and cooling systems. Over the following four decades it integrated advances in technology and spotted the increasing need to use efficient types of energy which required specialist management teams. Today, Idex offers comprehensive energy solutions including the management of collective heating and cooling networks, the technical maintenance of central heating installations and third party management of utilities. Idex’s clients include local authorities, residential and commercial complexes and industrial corporations. Alain Planchot, who was CEO throughout IK’s investment “At the time of investment we wanted to strengthen Idex’s position as France’s largest independent energy and environmental services company. We therefore refocused Idex on its core activities and pursued dynamic organic growth, while making selective acquisitions to enhance its geographic footprint.” Dan Soudry, Partner, IK 20 – IK NEWS 2/11
period, joined Idex in 1977 and succeeded his father as CEO in 1992. Idex first sought external funding in early 1992, successfully raising FFr 50 million by way of a private placement with a 17 per cent equity stake going to a financial consortium. Prior to this Idex had been wholly-owned by the Planchot family and Idex management. By 2004, with some minority shareholders wishing to realise their investment, Alain Planchot, as the company’s main individual shareholder and CEO, was keen to find a way of allowing them to do this while still enabling Idex to pursue its business plan as an independent operator. It was therefore decided that the company would seek further external investment. A sales process began in May 2004 with interest received from around five PE houses and five industrial companies. Within six months IK had managed to secure the deal. “I chose IK, and in fact exercised my pre-emption rights with them, because of their understanding of the business, of the context of the deal and because their ‘fit’ with me and the management team was significantly better than any other contender,” Planchot recalls. Business improvement strategy IK’s business improvement strategy included the purchase in 2008 of several strategic targets including ISS Energie – bought from ISS france with €100 million of sales, and Stepnor – acquired from its founders with €7 million of sales, to expand Idex’s geographic reach. “When potential acquisition targets were identified, IK helped to negotiate the deals and provided the necessary funds,” notes Alain Planchot. Meanwhile, as part of the streamlining process, Idex sold-off the Belgium-based air conditioning installation services business Limpen, and L’Industrielle de Chauffage entreprise, a climatic and electrical engineering firm, both in 2005. At the start of 2006 Idex sold the refrigeration equipment manufacturer, France Energie et Cie and, the following year, disposed of its water purification arm, Idex aquaservices, to GE Energy Financial Services. By 2008, nearing the end of its original development strategy, IK began to look towards an exit. Unfortunately, the financial crisis then hit and, fearing a poor valuation and lack of buyer interest as corporates and financial institutions ran for cover, IK and Idex agreed to delay marketing the company. This was clearly the right decision and, with the improving financial and economic outlook earlier this year, IK was able to begin exit preparations once more with a view to reaching final offers by autumn 2011. Before the process reached a public phase however, an attractive pre-emptive offer was received from Cube, a leading French infrastructure and public services fund. “I am really proud of the success Idex has achieved in response to the objectives defined by the management team under the direction of myself and IK.” Alain Planchot, CEO, Idex Focus on renewable energy sources The Cube transaction marked the end of Planchot’s role as CEO of Idex. While remaining as a minority shareholder, he stepped down in May 2011 to concentrate on the exit process and was succeeded by Frederic Viet. Planchot is now a member of the Idex supervisory board and positive about the company’s future with Cube and its commitment to renewable energy sources. “I am very happy to have been an integral part of the handover from IK to Cube. Idex has now joined forces with another determined and efficient partner and will continue to invest, particularly in imaginative and sustainable ‘green’ energy solutions,” says Planchot. Idex’s new CEO, Frederic Viet, notes that Idex is now the only independent operator in France with sufficient critical mass and a presence in all segments of the energy services market throughout france. “Following its success with IK, Idex has now begun a promising partnership with Cube and is ideally positioned to make excellent use of the many opportunities available to it in this promising and sustainable market,” he concludes. IK NEWS 2/11 – 21
Page 1 and 2: news issue a newsletter from Ik inv
Page 3 and 4: PORTFOLIO COMPANY NEWS NOTEWORTHY G
Page 5 and 6: its revenues for the current financ
Page 7 and 8: Trigo, the global components qualit
Page 9 and 10: IK Investment Partners’ recent
Page 11 and 12: “There was always pressure on us
Page 13 and 14: Doedijns has four proprietary techn
Page 15 and 16: The financial crisis of 2008 left a
Page 17 and 18: INTERVIEW XXXX XXXX WHAT THE FUTURE
Page 19: XXXX XXXX all our partners both int
Page 23 and 24: Interview with MIKAEL STERNBERG AS
Page 25 and 26: XXXX XXXX Gooday and senior portfol
Page 27 and 28: XXXX XXXX LUXEMBOURG OFFICE. From l
Page 29 and 30: SOCIAL RETURNS CHARITY/THE KAJOLI S
Page 31 and 32: IK PEOPLE FINNISH AMERICAN SCHOLAR/

CHRISTOPHER MASEK AND DETLEF DINSEL: - IK Investment ...

Create successful ePaper yourself

Delete template?

Save as template?