Mid-Cap Buyout & Growth Capital,
by Omnes Capital

Selecting high-potential French SMEs to support their growth strategies

Strategy

  • Leading French SMEs with solid fundamentals, a resilient business model and strong development potential through organic and/or external growth
  • Enterprise value between €25 million and €180 million
  • Ticket size between €8 million and €25 million
  • Buyout and growth capital transactions

Investment Policy

  • A committed shareholder: Omnes works alongside entrepreneurs sharing the same business vision for their project
  • As a responsible shareholder, Omnes has signed up to the UN PRI and systematically incorporates ESG factors (environment, social, governance) into its analyses. These criteria are monitored each year to identify and propose ESG-related areas for improvement to management. An economic impact study is carried out at exit
  • Omnes is an entrepreneurial investor: the team draws on a network of experts with seasoned industry knowledge to provide highly effective guidance to portfolio companies

Key strengths

  • Value creation underpinned by earnings growth in portfolio companies
  • Distinctive deal flow: regional opportunities seized ahead of the market thanks to the team’s personal network of contacts and its historical ties to the Crédit Agricole Group
  • Strong regional roots giving it first-class access to primary transactions
  • Longstanding expertise, with the fourth generation of funds currently in fundraising
Key figures
€515
million in assets under management
27
investments since 2005
17
exits since 2005
2.1x
gross exit multiple on exits since 2005
“We worked closely together, with openness and trust”
GENEVIÈVE
MELKONIAN
Co-Chairman
of the Melkonian group
Melkonian group

A family affair

After working with the Melkonian group for five years, Omnes Capital sold its investment in the leading mining equipment company with a heavy heart (February 2014).

Look back at a cordial and productive partnership

After Omnes first invested in the Melkonian group in 2008, commodity prices suddenly collapsed, plunging two-thirds in one quarter owing to a burgeoning financial crisis and a freeze on mining investment projects. But Omnes Capital did not lose confidence in the business.
In 2009, Melkonian managed to deliver profitable growth despite the crisis, by winning new customers.

 

Our key duty was to help the founders to build up their self-confidence and to make strategic decisions and take risks”, says Benjamin Arm, Managing Director at Omnes. This included the roll-out of an intermediate level of operational management and a strategy committee, a switchover from outright trading to the design, manufacture and marketing of equipment, and the creation of subsidiaries – in countries including Niger and Burkina Faso – to get closer to its customers while retaining its wholly French identity. Melkonian rose masterfully to a number of different challenges and we were delighted to have stood alongside it.

Melkonian
Genevieve
Co-Chairman
of the Melkonian group
Why did you choose Omnes Capital five years ago?

In 2008, we decided to approach investors so as to consolidate on the expansion in our family business with the support of financial experts, retain our management team over the long term and open up the Group’s capital for its employees. It was crucial for us to share our values with our new partner. From our very first meeting with Omnes Capital, we immediately felt similarities, confidence, and mutual respect, and so our cooperation began with a shared enthusiasm.

And looking back, how do you assess your fi ve years of working together?

It was an emotional moment when my brothers and I signed off on Omnes Capital’s exit. We worked closely together, with openness and trust, and our strategy committee meetings with Benjamin Arm and Daniel Balland, who has now retired, will live long in our memories. We invited Daniel to attend our next strategy committee meetings as special advisor, alongside our new investors: what better proof could there be of how pleased we were with our relationship with Omnes Capital! I also hope to stay in touch with Benjamin and, who knows, perhaps see him purchase another stake in a future funding round…

So why did the partnership come to an end?

Omnes Capital wanted to sell its shareholding. Five years is the normal length of an investment cycle. In parallel, we – the family – wanted to increase our shareholding. These two factors prompted us to bring the partnership to an end, but it was a really fantastic deal and so our new investors will have a lot to live up to!

Timeline

• 1955: Jacques and Angèle Melkonian open a garage in Gardanne.

• 1975: After inventing an axle for equipment used in mining facilities, Jacques gives his garage to its 12 employees and sets up Continental Industrie, a supplier to all the mines in France.

• 1994: The founder’s three children acquire the business and decide to focus on building underground mining equipment for international markets.

• 2008: Omnes Capital invests in the Melkonian group, present in 70 countries.

• 2014: Omnes Capital sells its shareholding to Bpifrance, Amundi PEF and Sofipaca.

melkonian-group
"Omnes Capital has given us full logistical and financial support to allow us to build up a truly pan-European organisation and become one of the leaders in this market".
Olivier
BREITTMAYER
CEO
Exclusive Networks
Exclusive Networks

A disposal that showcases an exemplary partnership.

The sale of Exclusive Networks to the Belgian fund Cobepa is a new great exit by the Mid Cap Buyout and Growth Capital team, with a valuation of €340 million and a multiple of 5x, for an investment which represented 15% of the CACI 3 fund.

Revenues up more than 500%

Omnes Capital acquired a stake in the company in 2010 in a primary leveraged buyout. In five years of achievement, the group has seen record growth.

The value-added distributor had two major strengths : the disruptive nature of its business (putting an end to the risk of technological obsolescence) and a distribution model that could be replicated internationally.

"The tasks were clearly shared out.They were in charge of technological watch and we were responsible for driving development through external growth and implementing the necessary financial resources", says Philippe Zurawski.
Exclusive Networks "muscled up"through a series of acquisitions.
Its growth rate today is four to five times higher than that of its rivals, with peaks at 60%. Margins are increasing through the sale of services, including training and maintenance. Despite the loss of an important card in 2011 – taken over by Cisco then integrated in its own distribution network – it is set to report revenues of €700 million at end-2015.

 

 

 

 

 

Olivier
Breittmayer
CEO,
Exclusive Networks

What made you choose Omnes in 2010 ?

We were looking for an investor with a robust standing to realise our acquisition strategy and one that could help us boost our credibility, especially internationally. But beyon that, it was also about people and trust. Omnes was quick to understand what made us tick and made the most suitable proposal.

How would you describe the five years spent together with Omnes ?

Omnes brought us all its logistical and Financial support to form a market-leading, pan-European business. We have grown from an SME working in a few countries to an international group, for which France now accounts for just 15% of revenues. Our organisational structure is well oiled, our costs are Under control and our ESG criteria* are stronger.

*The environmental, social and governance criteria integrated by a company in its daily management. These criteria are used to assess the company's Corporate Social Responsibility (CSR) Policy and the relevance ot its development model.

What are you objectives now ?

To continue developing through organic growth and acquisitions, consistent with the strategy devised with Omnes Capital. We also want to further reinforce our presence in new areas such as big data and leasing, particularly in Germany and the UK.

‘Super VAD’ value-added distribution model

Exclusive Networks, based in Boulogne-Billancourt, is Europe's leading independent value-added distributor (VAD) for the EMEA region, specialising in the marketing of solutions for businesses in the areas of cybersecurity, data centres and associated value-added services.
The group connects established and emerging global technology vendors from all over the world to markets in the EMEA region via its ‘Super VAD’ value-added distribution model. A specialist in cybersecurity solutions, Exclusive Networks works with more than 7,000 value-added reseller (VAR) partners.

Timeline :

2010 : Omnes acquires a share in Exclusive Networks.

2015 : The SME has become an international company with

– the creation of three subsidiaries, in Austria, Switzerland and Denmark, and
– the acquisition of ten companies, in Norway (Trigg Data), the UK (VADition and ITEC), Germany (TLK), the Middle East (Secureway), Benelux (Terach), Turkey (Bilisimcim), Australia (Whitegold), Italy (Sidin) and France (Fibail System).

2017 :  Exclusive Networks expects to top the symbolic mark of €1 billion in revenues

exclusive-networks
“It’s almost a personal relationship – one in which all parties participate on equal footing. Their assistance helped us get going in the right direction.”
Olivier
LENORMAND
CEO,
SVP Group

Five years after acquiring shares in SVP, Omnes Capital sells its take in the group.

We take a look back at this successful partnership

2011 :

Omnes acquires a €23 million stake in SVP


A 5-year partnership

  • 3 acquisitions in France and Canada between 2012 and 2016
  • 32 % turnover growth between 2011 et 2016

2016 :

  • 10,000 client companies and local authorities; 40,000 users
  • 650 employees located in France and Canada
A partnership for transformation

With a 32% uptick in turnover between 2011 and 2016, « we helped the Group complete three major acquisitions », explains Benjamin Arm, Managing Partner at Omnes Capital. The purchase of the French firm Fym Conseil in 2012 allowed SVP to round out its top management training offer.

 

In 2015 and 2016, « we worked together to find the best opportunities available, which ended up being in Canada with Synesis and Novaconcept and their e-learning solutions ». This decision achieved two goals in one fell swoop by strengthening the company’s existing offer and expanding into new markets.

 

« We concentrated our efforts on the sales force and lining up the product offer. In 2011, 90% of our offer focused on information service. Today, it is more diverse and includes an expanded training offer and a more complete externalised HR management solution ». The group grew again when it went from 500 employees in 2012 to over 650 working in France and Canada in 2016.

 

«Besides helping the group achieve its growth goals, we also helped it move into its new head office”. Between 2014 and 2015, SVP moved into 7,000-m2 of new office space in Saint-Ouen (93). “In addition to finding the site, it was also important to properly transfer the company’s operations, which is no easy task in the real-time information sector.” Likewise, capitalising on the low interest rates, “we refinanced the debt in 2015, which proved to be a major project, but we acted at the right time”. This strategy was win-win, “just like these past five years of a perfect partnership!»

3 questions for Olivier LENORMAND
Olivier
LENORMAND
CEO,
SVP Group
What were you looking for in this partnership with Omnes Capital ?

Our goal was to find a partner able to help us grow externally and organically in the international market with respect to our existing business lines while also rounding out our service offer. In Omnes Capital, we found an investor who, even before talking about money, worked proactively to understand our business lines, market, needs, and vision. The Omnes team presented us with the best possible action plan to reach our goals.

What have you achieved after five years of working together?

The outcome has been extremely positive. Our main contact person at Omnes was unfailingly enthusiastic, willing, and available. We spoke with each other on a regular basis outside of supervisory board meetings with complete transparency and a great deal of mutual trust. This is also what made us more agile and effective in our decision-making process. We were able to establish a truly personal relationship, which, in my opinion, was the key to our partnership’s success.

What comes next for the SVP Group?

The sale is happening at the right time. We have arrived at the end of our time with Omnes, but we will be pursuing our external growth strategy with other partners. We are currently finalising large-scale acquisitions in North America, Spain, and Germany.

svp-group
French market leader in telecommunications infrastructure for telecoms operators
Leader in express shipping and delivery services for retail and business customers
Dispam, one of France’s market leaders in temperature-controlled transportation
One of France’s leading providers of software solutions for local retailers
Capcom provides telecoms operators with deployment, installation and technical maintenance services for their high speed and fibre optic telecommunications networks
Specialist provider of security, networking, infrastructure and storage solutions for the smart social enterprise
Enable decision-makers to expand their skill set and ability to act on behalf of their business or their local authority
Specialist equipment for mining and mineral transportation
Key design partner for rapid-assembly industrial facilities available for sale, for rental or under lease and fully compliant with building regulations.
France’s number one inert materials management group
newsroom
Press release
14 September 2017
Omnes Capital invests in Aero Negoce International (ANI) through an Owner Buy-Out (OBO)
Omnes Capital invests in Aero Negoce International (ANI) through an Owner Buy-Out (OBO)
Publication
Omnes Capital Newsletter no 32
Press release
23 February 2017
Omnes Capital sells Capcom stake and completes the first exit
for its Omnes Croissance 4 midcap fund a few months after its final closing
Omnes Capital sells Capcom stake and completes the first exit for its Omnes Croissance 4 midcap fund a few months after its final closing
Press release
12 January 2017
Omnes Capital announces final closing of Omnes Croissance 4 midcap fund at €210 million
Omnes Capital announces final closing of Omnes Croissance 4 midcap fund at €210 million
Press release
01 December 2016
Omnes Capital announces a final IRR of 15% for its CACI 2 midcap fund (2005 vintage).
Omnes Capital announces a final IRR of 15% for its CACI 2 midcap fund (2005 vintage).
Publication
Omnes Newsletter no 32: Edirotial by Fabien Prévost, CEO, Omnes
Press release
03 October 2016
Omnes Capital sells its stake in the Pommier Group and liquidates its CACI 2 midcap fund with an IRR of 15%
Omnes Capital sells its stake in the Pommier Group and liquidates its CACI 2 midcap fund with an IRR of 15%
Press release
04 August 2016
Omnes Capital sells its stake in SVP Group to MML Capital
Omnes Capital sells its stake in SVP Group to MML Capital