Morlaix, France - Global alternative asset manager The Carlyle Group (NASDAQ: CG) and the Le Mer family today announced that they have entered into exclusive discussions regarding the sale by Carlyle of its shareholding in the Sermeta Group. Headquartered in Morlaix, Brittany, Sermeta is a global manufacturer of stainless steel heat exchangers for commercial and residential condensing boilers. The Carlyle investment was made from Carlyle Europe Partners III, a 5.3 billion Euro fund that makes mid- and large-cap investments.
Established in 1993 by Joseph Le Mer, Sermeta has rapidly grown to become an international company with sales in Europe, the United States and Asia of its stainless steel heat exchangers. In recent years, Sermeta has developed a number of patent-protected products in their state-of-the-art production sites in Morlaix and Lannion, Brittany, France for the world’s largest boiler manufacturers.
The transaction will result in the Le Mer family taking a controlling share of Sermeta, with Bpifrance and Crédit Mutuel Arkéa joining as investors. External financing will be provided by Crédit Agricole*.
Speaking on the announcement, Joseph Le Mer, President of Sermeta said: “Since July 2010 when my associate Rocco Giannoni retired and Carlyle made its investment, I have worked alongside Carlyle to drive the growth of the company. In this time, we achieved substantial increases in sales while making major investments into our production facilities. I wish to build on this growth, and pursue further innovation, while continuing to strengthen Sermeta’s manufacturing sites in Brittany. Bpifrance and Arkéa Capital Partenaire share our commitment to develop the Group in our region and will also participate in the transaction alongside the family.”
Jonathan Zafrani, Managing Director at The Carlyle Group, commented: “The partnership between Carlyle, the Le Mer family and the management of Sermeta has been a very successful one. In recent years, the Company has enjoyed significant sales growth thanks to its breakthrough products and the industrial excellence of its manufacturing sites based in France. We wish Sermeta continued success for the future.”
The transaction is expected to close in Q2 2014, subject to regulatory approvals. Further details of the transaction were not disclosed.
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About Sermeta Based in Morlaix and Lannion, Brittany (France), Sermeta is a leading manufacturer of stainless steel heat exchangers for condensing boilers. The Company has 600 employees for a total turnover of c. €186m and a production of more than 1.65 m heat exchangers per year. The globally appraised products’ performances allow for more than 30% reduction of pollutants as well as a decrease of energy costs for final users. Sermeta has developed ranges of heat exchangers from 15kW to 500kW for heating and sanitary applications.
About The Carlyle Group The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with approximately $189 billion of assets under management across 118 funds and 106 fund of funds vehicles as of December 31, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,500 people in 34 offices across six continents.
About Bpifrance Since the 1 January 2013, Bpifrance, the French public investment bank, brings together the financing activities of OSEO (innovation, guarantee, credit) and those of equity investments led by FSI, FSI Régions et CDC Entreprises. Its ambition is to help businesses, ranging from start-ups to medium-sized companies, and occasionally large companies, to innovate, invest, grow and export. Bpifrance, by sharing the risks with its private and public partners, provides a continuum of financing, from short-term credits to equity capital, that meets the needs relating to each stage of businesses life cycle.
For additional information, please visit: www.bpifrance.fr – follow us on Twitter : @bpifrance
About Crédit Mutuel Arkea Crédit Mutuel Arkéa Crédit Mutuel arkéa is a cooperative banking and insurance company. It comprises the credit mutuel de bretagne, credit mutuel du sud-ouest and credit mutuel du massif central federations as well as approximately 20 specialized subsidiaries (Fortuneo, Monext, Financo, Arkéa Banque Entreprises et Institutionnels, Federal Finance, Suravenir,..). With close to 8,600 employees, 3,700 administrators, 3.2 million members and clients in banking and insurance and €94bn of total assets, Crédit Mutuel Arkéa is one of the top banking institutions being headquarter in the west of France.
Created in 2011, Arkéa Capital Partenaire is a subsidiary of Crédit Mutuel Arkéa, dedicated to the equity financing of high potential mid-cap companies. With €200m of investment capacity, which can go up to €400m, Arkéa Capital Partenaire is a long term partner for local companies.