HLD Europe in negotiations with IK Investment Partners to acquire Exxelia

HLD Europe has entered into exclusive negotiations with IK Investment Partners (IK), a Pan-European private equity firm to become the majority shareholder of Exxelia Group, a specialist in the manufacturing of high reliability passive components and electromechanical systems. 

Exxelia’s management will reinvest alongside HLD Europe.

The completion of the transaction is subject to the consultation of employee representative bodies and the approval of the competition authorities as well as the French and American administrations.

Exxelia develops and manufactures complex passive components and electromechanical solutions for niche industrial markets such as aeronautics, space, defence, medical and rail, where product reliability and performance are essential. The Group serves institutional clients, systems and equipment manufacturers. 

 

Exxelia offers a complete and custom product range (capacitors, inductors, resistors, filters, position sensors and rotary joints) embedded into a large number of programs including: the Airbus A350 and Boeing 787 Dreamliner, the Ariane 6 launcher, satellite constellations (such as Galileo and Oneweb), the Rafale and F-35, subway coaches and high-speed trains and medical equipment such as MRI machines and defibrillators.

 

With an expected proforma revenue of around EUR170 million for 2019 and around 2,000 employees, Exxelia is present today in more than 30 countries operating in Europe, the US, Morocco and Vietnam through production sites, design centres and networks of sales partners.

 

With the support of its new shareholder, Exxelia will be able to intensify its operational excellence and innovation efforts, pursue its international growth strategy through entering high-growth markets such as India or China, and accelerate its development in the US.

 

Paul Maisonnier, CEO of Exxelia, says: “I am delighted to embark on a new stage of development with our new shareholders, with whom we share the same vision. Together, we aim to strengthen Exxelia’s unique “one-stop-shop” by offering high-reliability custom products combined with a strong capacity for innovation. We will pursue our continuous improvement approach and internationalisation strategy to make Exxelia a world leader in our niche markets. In that regard, HLD's experience in international business development is invaluable to us. We thank IK Investment Partners for their support over the past five years which has enabled us to set up a solid platform capable of supporting our ambitions for global growth, which we are delighted to continue with HLD.”

 

Dan Soudry, Managing Partner at IK Investment Partners and advisor to the IK VII Fund, says: “As shareholders of Exxelia since 2015, we are very pleased to have supported the various stages of transformation and growth of the Group, through a deep structuring phase led by the management team and an ambitious growth strategy. This has strengthened the Group's presence in the US, in particular with the acquisition of Raf Tabtronics, Deyoung, and Micropen, and diversified its expertise on new product lines.”

 

Jean-Bernard Lafonta, Founding Partner of HLD Europe and Jean-Hubert Vial, Partner, says: “HLD supports successful companies with no restrictions on duration. We believe this specificity was important in the choice of Exxelia’s new shareholder: it is essential to achieve the ambition of growth while considering the long-term nature of Exxelia clients’ programs. We are delighted to be associated with the group's project, whose entrepreneurial culture echoes the entrepreneurial spirit that drives HLD. We are convinced that we can help Exxelia's teams by giving them the means to meet their ambitions.”