Acquisition of a stake in Ipackchem by Sagard
In February 2017, Sagard 3 acquired a stake in Ipackchem, one of the global leaders in the manufacturing of “barrier” packaging, whose products are mainly used in the transport and storage of aromas, fragrances and agrochemical products for which permeability, contamination and evaporation constraints are critical.
Fund-raising by Sagard 3
During the fourth quarter of 2016, Sagard 3 raised EUR 404 million in additional capital, subscribed by Sienna Capital for EUR 17 million, as well as by nine other European institutional investors.
Sale of FläktWoods
Sagard and Equistone signed an agreement to sell FläktWoods to Triton. This transaction was completed in October 2016 and generated a consolidated capital gain of EUR 12 million (GBL share).
Acquisition of a stake in Prosol by Sagard
On 25 March 2016, a group of investors led by Sagard announced that they had signed an agreement with Denis Dumont, founder of and majority shareholder in Grand Frais, to acquire a minority stake in Prosol, the parent company of the group. Grand Frais is a French chain of stores specialised in the sale of fresh products.
Sale of Cérélia by Sagard II
In July 2015, sale of Sagard II’s stake in Cérélia, generating a capital gain of EUR 14 million (GBL share).
Acquisitions and sale by Sagard III
New acquisitions by Sagard III during 2015 : Safic-Alcan, Délices des 7 Vallées and Alvest. This fund also successfully completed the disposal of the Santiane group in September 2015, generating a capital gain of EUR 7 million (GBL share).
Sale by Ergon Capital Partners II and Sagard II of their shareholding in Corialis
Ergon Capital Partners II (ECP II) and Sagard II completed on 30 October 2014 the sale of their shareholding in Corialis, a leading European manufacturer of extruded, coated and insulated aluminium profiles for doors, windows and verandas.
This transaction generated in 2014 a consolidated net profit of EUR 41 million (attributable to GBL).
Continued development of the Financial Pillar: Sagard III and Kartesia
As part of its strategy of implementing the Financial Pillar, GBL has continued to support the French investment fund Sagard by making a EUR 200 million commitment to Sagard III alongside Power Corporation of Canada.
It has also undertaken to acquire a stake amounting to EUR 150 million in Kartesia Credit Opportunities I, a debt fund on the primary and second market.
Continued development of the private equity business
In 2012, EUR 28 million were released to fund investments in the funds Ergon Capital Partners and Sagard. EUR 2 million of dividends were also collected following the disposal of an investment in PAI Europe III.
Distributions and additional investments in private equity
In 2011, GBL invested EUR 95 million in the Ergon Capital Partners, PAI Europe III and Sagard funds and collected distributions of EUR 75 million for the disposal of various interests.
Private equity activity showed a modest recovery in 2010. Apart from a few pay-outs or marginal payments in full in the ECP I & II, PAI Europe III, Sagard and Sagard II funds, GBL invested some EUR 40 million in Ergon Capital Partners III, a vehicle created in the first half of 2010 in which GBL, the sole shareholder, has agreed to invest EUR 350 million.
At the end of 2010, the uncalled subscribed commitments on these different funds totalled around EUR 443 million.
Distributions and additional investments in the funds ECP, PAI Europe and Sagard
In 2009, GBL invested EUR 7 million in the different private equity vehicles that make up its portfolio and collected dividend payouts totalling EUR 2 million. The commitments not called up totalled EUR 138 million on 31 December 2009.
Distributions and additional investments in the ECP, PAI Europe and Sagard funds
In 2008, GBL invested EUR 24 million in the different private equity vehicles that make up its portfolio and collected dividend payouts totalling EUR 33 million.
The commitments not called up totalled EUR 194 million on 31 December 2008.
Additional payment under subscription in Ergon Capital Partners (ECP), PAI Europe III and Sagard Private Equity Partners (Sagard)
In 2007, GBL invested EUR 109 million in the different private equity vehicles that make up its portfolio and collected dividend payouts totalling EUR 100 million. The commitments not called up totalled EUR 221 million on 31 December 2007.
The additional payments enabled Sagard to bolster its presence in Regie Linge Developpement, Sagard II to invest in Vivarte, Corialis, SGD and Fläkt Woods, and ECP to invest in Corialis, Joris Ide Group and Farmabios and to boost its stake in La Gardenia and Seves.
The contribution of the different funds to GBL's result for the year amounted to EUR 67 million. This contribution is primarily the result of divestments by PAI Europe III, Sagard and ECP.
During the year under review, PAI Europe III disposed of five holdings (Provimi, Saur, Elis, Vivarte and Neuf Cegetel); Sagard sold Vivarte and Medi Partenaires, and ECP disposed of its shareholding in King Benelux, selling it to the group Bunzl plc. in August 2007.
Additional pay-up in PAI and Sagard Private Equity Partners
PAI Europe III
On 31 December 2004, GBL invested EUR 20.7 million in the private equity fund PAI Europe III. The uncalled commitment amounts to EUR 14.0 million.
PAI Europe III sold Antargaz during the first quarter of 2004 to UGI, an American listed company, in a context of very favourable market conditions, thus realizing a capital gain of EUR 4.2 million at GBL level.
PAI Europe III's portfolio grew in 2004 with the acquisition of various interests, among them:
- Saeco, active in the design, production and distribution of espresso coffee machines for domestic and professional use. This company, which used to be listed in Milan, became unlisted following a public repurchase offering.
- Vivarte, an important French retailer of clothing and footwear, leader in its sector. The group operates two different concepts: major discount outlets in suburban municipalities and name-brand chain shops in city centres.
The sound financial performance of Mivisa (a Spanish manufacturer of metal packaging) in 2004 and growth in its margins resulted in a significant reduction of debt and a reimbursement for shareholders. PAI Europe III also announced in December 2004 the sale of Mivisa to funds managed by CVC Capital Partners. The transaction is expected to be finalised in the first half of 2005.
Sagard Private Equity Partners
In 2001, GBL made an undertaking to invest EUR 50 million in Sagard, a private equity fund that closed its subscriptions at EUR 536 million. On 31 December 2004, GBL paid a cumulative amount of EUR 21.5 million.
In the course of 2004, Sagard invested in four interests that made up its portfolio at end December:
- Vivarte, a major player in the distribution of clothing and footwear, alongside PAI Europe III.
- Faiveley Transport, present across the globe in the sector of on-board rail equipment.
- Groupe Moniteur, French leader in the trade press and in specialised services in the construction sector and for local communities. The activities are grouped into two complementary poles: press, with two flagship nationally-known weeklies, and services, including the organisation of exhibitions, seminars, and training and publishing activities.
- AFE, international group specialised in the design and manufacture of plastic components and the manufacture of cast steel components.
Additional pay-up of PAI and Sagard (PEP) funds
At the end of December 2003, GBL paid up EUR 17.9 million and EUR 3.2 million respectively into the PAI Europe III and Sagard (PEP) funds, out of a commitment of EUR 40 million and EUR 50 million.
PAI Europe III, after closing its call for funds at EUR 1,816 million, proceeded with several investments :
- United Biscuits, a UK firm that produces and distributes biscuits and snacks;
- LD Com, a French provider of infrastructure, bandwidth and services for telecom and Internet operators;
- Mivisa, a Spanish producer of metal packing products; Antargaz, LPG distributor in France;
- Elis, European leader in textile leasing, refreshment services (coffee machines and water distributors) and hygiene services;
- Panzani, Europe's number two producer of pasta, rice, couscous and sauces;
- Provimi, developer, manufacturer and distributor of animal nutritional products;
- Yoplait, number two after Danone in fresh dairy products.
Sagard (PEP) closed its subscription period end december 2003 with an investment capacity of more than EUR 500 million.
Additional pay-up of PAI and PEP funds
At the end of December 2002, GBL paid up EUR 19 million and EUR 2 million respectively into the PAI and PEP funds, out of a commitment of EUR 40 million and EUR 50 million.
PAI, after closing its call for funds at EUR 1,816 million, proceeded with five investments in the course of 2002, namely Antargaz, Yoplait, Panzani Lustucru, Elis and Provimi.
PEP decided to prolong its subscription period and aims to an investment capacity of EUR 500 million.
Investment in the private investment fund, Private Equity Partners Europe (PEP)
GBL also decided towards the end of the year to invest EUR 50 million in PEP, a private equity fund expected to be worth more than EUR 500 million, created by Power Corporation of Canada. The fund will concentrate on investments in medium-sized enterprises, primarily in French-speaking Europe. It expects to generate a high rate of return while using gearing.
The operation, which meets the requirements of Article 524 of the Company Code, is based on an approach similar to that underpinning the PAI investment. It is a one-off operation by nature and does not reflect a new investment policy on the part of GBL through funds outside the group.