Tuesday, March 22, 2016

Eurazeo and Bridgepoint Foncia put on sale – The World

Le Monde | • Updated | By

Five years after having acquired Foncia, the French leader in property management with 1.2 million managed condominium lots and leased assets 318 000 (2014 figures) its two shareholders, the investment fund Bridgepoint and Eurazeo, present the market, as revealed Les Echos in their edition of March 21. According to the business daily, they hope to 2 billion euros, while they had purchased in July 2011 at the People’s Bank Savings banks (BPCE) € 1.017 billion, including debt 292 million euros.

Jacky Lorenzetti had created in 1972 the Franco Suisse Management, became Foncia, he has risen to the forefront of the administration area of ​​property (condos and rentals). He had originally ceded to the Banques Populaires, in 2007, the highest of the market and the astronomical price of 1.3 billion euros. What to a golden retirement in the sun of Corsica, finance rugby team Racing 92 and offer several great wines of Bordeaux. In 2011, the Popular Banks, became BPCE, in great need of capital and that had not really been able to manage Foncia, resell at a loss to Eurazeo and Bridgepoint, Britain, held by a financial horizon to five years, . being apparently more eager to sell the French

the file, entrusted the Rothschild bank, circulating for a few days and major in the art on the lookout for acquisitions, consider carefully: “the price of € 2 billion, or 16 to 17 times the EBITDA of Foncia, is not reasonable for a manufacturer like us” , responds immediately Alain Dinin, President of Nexity, number two in the profession, with its brands Nexity Services, Century 21 and Guy Hoquet.

full concentration sector

the area is already in full concentration : Nexity, 1 st in April 2014, acquired Oralia; Citia redeemed, in 2012, Urbania Real then, in 2014, the group’s agency Immobilier de France and in 2015 Belvia; while Foncia had itself already made multiple acquisitions, Tagerim in 2013, and 17 others, including Giep (Ile de France), Initia (Le Mans) and the Swiss MK Services in 2015.

According to the annual report Eurazeo, Foncia’s performance is tempting, as he realized in 2015 a turnover of 696 million euros, up 8.5% (5.5% organically), but net debt, too, swelled to 611 million euros. Gross margin was 18.9%, “much higher than ours, close to 12% says, admiring but skeptical strand, Alain Dinin. How do they calculate? “.

François Davy, defector temping agency Adecco, arrived at the head of Foncia in January 2012, has, in fact, conducted a rather brutal human resources policy, including lowering remuneration, indeed quite comfortable subsidiary managers. “Manage condominiums and rentals is a tough job, proximity, that is not industrialized easily , says Henry Buzy-Cazaux, president of the Institute of Management of real estate, high school sector, I do not believe separate from experienced employees is a good calculation “.

other investment funds, gorged with cash thanks to cheap credit, Capvis as Switzerland and some Anglo-Saxon countries, are also candidates for the purchase of Foncia.

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