Food for thought - Bridgepoint Capital

NEWSItaly’s SEA motors aheadBridgepoint has recently acquired SEA,one of Europe’s largest manufacturers ofbranded motor caravans. In less than fiveyears, the company has become the largestproducer of motor caravans in Italy and thethird largest in Europe, with a market shareof 15 per cent. Founded in 2000 by chiefexecutive Ermes Fornasier, the companyhas made three large acquisitions in Italyand built up a significant market share inFrance, Germany and Spain.“SEA has outperformed its marketover the past three years, thanks to themanagement of Ermes Fornasier, a highlydriven entrepreneur with strategic vision,and Pierluigi Alinari, one of the leadingEuropean players in the motor caravanmarket,” says Guido Belli, partnerresponsible for Bridgepoint’s investmentactivities in Italy.The European market for motorcaravans is predicted to grow strongly overthe next five years, driven by favourabledemographics and increasing financialresources and leisure time. SEA motorcaravans retail for between €20,000and €80,000.“Our competitiveness isa result of the emphasis weplace on the price andquality of our products andthe development of servicelevels aligned to the needsof the dealer network andour ultimate customers,”says Fornasier. “WithBridgepoint as our newmedium-term financialpartner, we have one of themost experienced private equityoperators in Europe. This will allow SEAto take an important next step forward inits sector.”Comfortable ride: SEA has outperformed itsmarket over last three yearsCarter & Carter’s LSEoffer oversubscribedHMY offthe shelfCarter & Carter , a UK-based providerof outsourced support services to globalvehicle manufactures, successfully listedon the main board of the London StockExchange in February 2005. The offeringwas oversubscribed and the shares werepriced at 235p apiece, valuing the businessat £78.4 million.A proportion of the funds raised wasused to pay down existing shareholders,including Bridgepoint, which held a 46per-cent stake. Bridgepoint firstinvested £6.7 million in Carter & Carterin January 2001.“We are pleased with investor interestin the flotation of Carter & Carter,” saidBridgepoint partner Michael Davy. “TheDriving force: Carter & Carter chief executive Philip Cartercompany has grown tremendously sinceBridgepoint first invested four years agoand we wish the team every success in itscontinued development.”“We are delighted at the investorresponse to our flotation. It will not onlyraise our corporate profile, but enable thegroup to maintain its total commitmentto client service excellence, whilstretaining and attracting the qualitypeople that have helped us build thebusiness we have today,” says Carter &Carter chief executive Phillip Carter.Rothschilds acted as sponsor andfinancial adviser to the flotation withABN Amro Rothschild acting asbookrunner and underwriter and HoareGovett as broker.Bridgepoint has sold Hermès MétalYudigar, the European market leader inthe design, production and supply ofshelving systems to the food and nonfoodretail sectors.The business has expandedconsiderably since it was acquired byBridgepoint in April 2000. It now turnsover €300 million, 60 per cent of whichcomes from its French market base.HMY also has a substantial presencein Spain, following the successfulintegration of Spanish market leaderYudigar into the business.“Under Bridgepoint’s ownership wewere able to consolidate our operationsand integrate our newly acquiredSpanish business,” says Joël Goulet,president of HMY.Bridgepoint received corporate financeadvice from Downer & Company andlegal advice from Linklaters. HMY wassold to private equity firm Sagard. Thecompany’s management will reinvest inthe business, retaining a stake of morethan 20 per cent.THE POINT 5