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HIG Europe makes strategic investment in CTI Groupe

HIG Europe has acquired a significant equity stake in CTI, in conjunction with the merger between CTI and Maten. With turnover of nearly EUR135 million, the new group is now the leading independent industrial boiler maker in France specialised in the energy sector.

CTI specialises in the construction and maintenance of unique and complex parts primarily for companies in the energy sector. CTI is a world leader in the construction of high value-added parts for the nuclear industry, where it is active throughout the value chain (research, enrichment, production, recycling). CTI provides services to customers in France and abroad, mainly in the United Kingdom, China and the United States. It operates eight production sites in Normandy and the southeast of France, and will soon be opening a new site in China.

Maten is the French market leader in the maintenance of storage tanks for hydrocarbons and other explosive liquids. It operates eight branches in France near the main hydrocarbon storage sites, providing proximity of service to its main customers.

CTI and Maten (CTI Groupe) share the same know-how in technical metalwork for parts, benefitting from a highly-qualified staff trained to meet stringent safety requirements. Both companies are strategic suppliers to the leading companies in the energy sector, who have been long-standing customers of CTI Groupe for many years.

The CTI/Maten transaction will enable the new group to present a broader, complementary range of services, both in construction and maintenance. HIG’s investment will also enhance CTI Groupe’s financial position enabling the group to supply its customers in rapidly-expanding markets.

Maten’s acquisition was financed by the capital contribution of HIG Europe, together with debt raised from a pool of senior banks and mezzanine debt from Bayside Credit Partners, HIG’s direct-lending arm.

Following the transaction, HIG will act as reference shareholder alongside the founders (Patrick Martel, Dominique Sabine, Michel Belguiral and Gilles Boudaud) and their management team.

Patrick Martel, founder and CEO of CTI Groupe, says: “The expanded range of services offered by CTI Groupe/Maten is a significant step forward, laying the groundwork for the future. This combination will enable us to significantly expand our range of services and to diversify our markets. With HIG Europe taking a stake in the company, the group is now backed by a financially strong shareholder, able to support our growth. We especially appreciated the responsiveness, flexibility and professionalism of the HIG team, which proved to be a major advantage in this complex transaction.”

Olivier Boyadjian (pictured), Managing Director of HIG Europe in France, says: “We are impressed by the commitment and quality of the management of both groups. They have successfully built companies that are market leaders, highly regarded for their skills and ideally positioned to lead the group on its growth path. This transaction once again shows our capacity to invest in complex transactions simultaneously with strategic acquisitions within very short timeframes, and our ability to do so with a complete financing package.”

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