Intermediate Capital Group (ICG) has agreed to acquire Gerflor, the international flooring specialist, from AXA Private Equity, with the support of Gerflor’s existing management team, headed by its CEO Bertrand Chammas.
Other minority shareholders (including Barclays Private Equity and NiXEN Partners) will also sell their stake in the company. This follows a period of five years where AXA Private Equity has actively supported the Gerflor management to expand the business through bolt-on acquisitions and investment in organic growth.
Over the course of AXA Private Equity’s 5 year ownership, Gerflor has accelerated its diversification into new, high value-added areas and has broadened its geographical footprint. Gerflor increased its sales from EUR359 million in 2006 to EUR448 million in 2010, achieved through targeted acquisitions, significant reinforcement of its sales force and by investing close to EUR60 million in its industrial equipment.
François de Mitry at ICG says: “Gerflor has achieved first-class performance over the past few years, under the leadership of Bertrand Chammas. For ICG, this transaction is the outcome of a long-standing relationship with Gerflor as we have been invested in the group since 1992. We look forward to supporting the management execute its development strategy, notably including further international expansion, both organically and through acquisitions”.
Dominique Gaillard, Member of AXA Private Equity’s Executive Board, says: “We have committed a lot of resources to Gerflor over a long investment period and have worked closely with Bertrand Chammas and his team to support the growth of the company. Now strengthened and more robust, Gerflor has proven very resilient through the economic crisis and the group has even increased its investments to secure its future growth. This is a great achievement for AXA Private Equity”.
Bertrand Chammas, CEO of Gerflor, says: “After five years with AXA Private Equity as a leading investor, Gerflor has been able to expand significantly worldwide. I am particularly happy to welcome ICG as our new reference shareholder. Their strong knowledge of our business, together with the innovative and flexible corporate financing structure put in place, will enable us to seize future growth opportunities”.
With a turnover of EUR448 million in 2010, Gerflor is a multi-specialist group that creates, manufactures and markets innovative, decorative and environmentally-responsible solutions for flooring and interior finishes. Its products are used in professional (healthcare, retail, sports, transport…) as well as residential applications. Gerflor’s strengths mainly stem from its dedicated sales force, its marketing & branding strategy and its proven innovation and industrial capabilities.
The acquisition is subject to customary anti-trust approvals and closing is anticipated by end of March 2011.
