New deal : Babcock Wanson
Acting as sole mezzanine financing provider and minority shareholder in the FCDE’s acquisition of Babcock Wanson, Kartesia completed its first primary operation on the French market in Q2 2016.
Babcock Wanson: a leading industrial specialist across Europe
“Babcock Wanson is the European leader in the manufacturing and servicing of medium-sized industrial boilers used in various types of production processes such as food processing, chemicals and pharmaceutical manufacturing, and electricity production“, Julien Rigon, Associate Director at Kartesia, explains. “It benefits from one of the largest installed bases in Europe and enjoys a very strong reputation for product quality as well as high-level servicing capacities.” Headquartered in France, Babcock Wanson operates two production units, one in France and one in Italy, and employs over 550 people in France, Italy, UK, Spain, Portugal and Poland.
A highly re-active and adaptable Kartesia approach towards the Transaction
Babcock Wanson was previously owned by French listed industrial conglomerate CNIM as part of its industrial boilers division. During the acquisition process conducted by FCDE, a renowned French midcap private equity firm, Kartesia initially delivered a financing package within three weeks to support the FCDE’s bid, and later participated to the overall financing as Mezzanine provider. “Spin-off operations are always complex” says Julien, emphasising the intensive due diligence Kartesia conducted to assess Babcock Wanson’s activity. “We reviewed the roadmap, both at a financial and operational level.”
As mezzanine provider and minority shareholder, Kartesia will benefit from future upside resulting from the strengthening of Babcock Wanson’s key market positions and a selective potential acquisition strategy.