Executive summary - Udo Bullmann

FRANS BONHOMME1. Company descriptionFrans Bonhomme was founded as a family owned business in 1935 when the first shop was open. In 1989 thecompany became almost completely owned by the Bollore Group. In 1994 the company became by private equityowned, and has since undergone four LBOs.Frans Bonhomme, with more than 120,000 customers in France and more than 30,000 items in its catalogues, is theleader in the distribution of plastic pipes and their accessories destined to construction and public worksprofessionals as well as plumbing tradesmen. Frans Bonhomme is the only specialist player in its field and has astrong position throughout the French territory due to its network of 284 points of sale. The company had a turnoverof €538 million in 2004.2. Economic and social effects2.1 LBO description (offshore base, activity focus, etc.)Frans Bonhomme was originally the subject of a buyout in December 1994 when Fonds Partenaires (Lazard) led aFFr 950m transaction in which a syndicate of private equity investors committed a total of FFr 300m. The syndicatecomprised Fonds Partenaires, Apax Partners, l'Union d'Etudes et d'Investissement, IPO, LCF Edmond de Rothschildand Socadif. Later, in February 2000, Frans Bonhomme was acquired in a FFr 2.5bn secondary buyout by aconsortium of institutional investors comprising Cinven, PAI and Astorg Partners. Each of Cinven and PAI acquireda 33.4% stakes in the company while Astorg Partners acquired a 17.9% stake.In June 2003 Apax Partners, alongside Goldman Sachs private equity funds, announced the Euro 520m tertiarybuyout of Frans Bonhomme, and accompanied the change of generation at the CEO level.The Fourth LBO took place in October 2005, when Cinven in conjunction with the newly appointed managementteam acquired Frans Bonhomme from Apax Partners.2.2 Debt structure, alteration of company capital management fees requested by LBORoyal Bank of Scotland provided the debt of the latest LBO.2.3 Effects on job creation, investments in training and education of labour force, investment ininnovationThanks to changes in strategy implemented by private equity investors and consequently a renewed managementteam, Frans Bonhomme has succeeded in achieving its development programme of outlet openings in France and inlaunching an international expansion. It has now a network of 300 shops compared to 145 in 1998. Geographicexpansion was followed by a significant increase in employment level.2.4 Corporate governance and economicsFinancial sponsors have been actively involved in the process of building a strong management team. During thesecond LBO a new Financial Director and Development Director were introduced in order to reinforce the team.In the third LBO there was a change of CEO as the historic CEO retired.2.5 Protection of minority shareholdersNot applicable. In the case of Frans Bonhomme there is no minority shareholders at risk as the only owners areprofessional financial investors, and the Management team.