NextStage, an investment company listed on the Euronext Paris regulated exchange, and a specialist in long-term equity investments in mid-sized companies (MSCs), has sold of its entire stake in the Fountaine Pajot Group.Fountaine Pajot, an brand created by Jean-François Fountaine and Yves Pajot in 1976, has developed unmatched expertise in the design and manufacture of elegant marine catamarans for nearly 40 years, allowing it to sell more than 3,000 boats worldwide. Supported by NextStage since 2015, Fountaine Pajot has been able to develop and strengthen its leadership position, becoming one of two French flagships of industrial know-how in the world yachting market.
Led by a team of entrepreneurs with complementary skills, the Group has changed scale thanks to the significant commercial success that has driven strong organic growth, especially abroad (82 per cent of sales), and strategic external growth that has made the firm Europe’s second largest manufacturer of pleasure boats. In five years, revenues have quadrupled, from EUR49 million in 2014 to EUR207 million in 2019, while EBITDA has seen the same increase, climbing to EUR30 million in fiscal year 2019, versus EUR6.5 million in 2014.
Among the achievements of the last five years is the acquisition of Dufour Yachts, a flagship brand in the world of monohulls, that made it possible for the Group to change its scope. The alliance of these two complementary brands has resulted in a complete range of recreational watercraft, both multihulls and monohulls, an increased capacity for innovation and strategic industrial and commercial synergies. The merger of the two shipyards in La Rochelle has also strengthened the shipyard’s historic local footprint and positioned the Fountaine Pajot Group as the second largest employer in the Charente Maritime region, going from 440 employees in 2014 to 1,272 in 2019.
During this time, the Fountaine Pajot Group also continued to strengthen its industrial and financial fundamentals to make possible enhanced production capabilities as well as innovation-driven productivity gains. These internal improvement plans combined (i) capital expenditures, including an extension of the Aigrefeuille plant in Aunis and the opening of a new digital plant, with (ii) the deployment of Lean Management optimization measures, which have brought industrial flexibility and improved working conditions for employees.
Finally, thanks to remarkable handling of the Covid crisis by the team of entrepreneurs and to the commercial momentum regained this summer, the impact on turnover has been contained and the group now enjoys good visibility.
The proceeds from the sale and the dividends paid by the group afford NextStage a multiple of x 3.7 and an IRR of 29 per cent on its initial investment that reflect five years of fruitful collaboration. Sale concluded at a valuation identical to that n used in calculating NextStage NAV at 30 September, 2020.
“Over the last five years, NextStage has supported us on a variety of strategic issues. Our collaboration has been rich in developments, most especially the acquisition of Dufour Yachts and a capital stake in the world’s leader for pleasure boat charters, Dream Yacht Charter,” says Claire Fountaine, Chair of the Fountaine Pajot Group.
“At a time when the future of French industry is at the heart of national debates, the Fountaine Pajot Group is proof that France has entrepreneurs capable of creating and developing MSCs that are gems reflecting and benefitting our regions, industrial companies that are world leaders in their markets and creators of sustainable jobs. We are pleased to have had the opportunity to support the Fountaine family and the Fountaine Pajot Group in their growth over the last five years by contributing to their operational excellence, and to have participated in a brilliant success story for shipbuilding in France,” says Grégoire Sentilhes, Chairman of NextStage AM and Managing Director of NextStage.
