News 2004

European funds advised by BC Partners assume control of Picard

  • Over the last 31 years Picard has become the undisputed leader in frozen foods in France. In 2003, the Group had a turnover of €747 million (12.7% growth on the previous year) and employed 3,200 people. It has 570 stores and 22 home delivery centres in France and 45 stores in Italy, all managed by the company. Picard also offers a home delivery service in London.
  • European funds advised by BC Partners, along with the Decelle family and Picard management, will acquire all of the capital of Picard for an enterprise value of €1,308 million. Subject to the agreement of the competition authorities, the deal should be completed by the end of the year. The rationale for the transaction is to enhance the financial capacity of the company in order to continue its development in France and Italy.
  • BC Partners is fully committed to Picard and will work in partnership with management to realise the company's potential, utilising its knowledge of the French and Italian markets.

European funds advised by BC Partners, together with the Decelle family and Picard management, have agreed to acquire 100% of the capital of Picard, principally from a group of investors consisting of Candover, Chevrillon & Associates, Montagu Private Equity and Astorg Partners. Subject to the agreement of the competition authorities, the deal should be completed by the end of the year. The change in the capital structure leaves the Decelle family with the same stake in the company.

After backing Picard, notably in expanding its retail estate in France and in developing its distribution network in Italy, the four funds sought to exit their investment as part of the normal active management of their portfolio. The funds bought Picard from Carrefour in 2001, which itself acquired the company in 1994 from Armand Decelle, its owner since 1973. The company was founded in the 1920s by the Picard Family who delivered blocks of ice in the Seine & Marne region and who, as technology progressed, began after the War to offer frozen foods.

With a share of more than 12% of the market, Picard is the leading distributor of frozen foods in France. The company had a turnover of €747 million in 2003 (up 12.7% on the previous year) and employs 3,200 people. As of now, the sales network consists of 570 stores and 22 home delivery centres in France and 45 stores in Italy, all managed by the company. Five warehouses, two of which are directly managed by Picard, ensure the stores' supply. The organic rate of growth in France is 40 stores a year. Finally, Picard offers a home delivery service in London.

Now the company, with the support of BC Partners, aims to strengthen its leadership position in the French market and reposition its offer in Italy.

Xavier Decelle, CEO of Picard, stated: "I am delighted about this transaction because I am convinced that BC Partners is the best partner to help us fulfil our strategy of profitable development in France and the rest of Europe."

André François-Poncet of BC Partners said: "We are extremely pleased to have reached an agreement which allows us to acquire Picard. We are confident in its continued profitability, which rests on its position of market leader. We are convinced that this company has the potential to grow in France and internationally, where we will support its efforts."

Notes to editors

Picard
Created in 1973 by the acquisition by Armand Decelle of a small home delivery business based in Fontainbleau, Picard today holds a singular position in the French market. As the designer and distributor, Picard offers a unique range of more than 1,000 basic and ready-made products suited for all budgets and all occasions, from the ordinary to the festive, for large families and singles alike. Its research and development team, which relies on the constant monitoring of customers' needs and expectations, creates about 150 new products a year.

For more than 30 years, above and beyond a mere commercial relationship, focus on the customer has been at the heart of the company. It has guided the company's history, development and success, and continues to underpin genuine and unique values. Being close to customers means offering the most tasty, practical and safe products representing excellent value for money. This also means taking into account customers' concerns about a healthy and balanced diet, and communicating with them openly and honestly.

Today 3,200 employees take part in Picard's development, sharing knowledge, responsibility and success.

BC Partners
BC Partners (www.bcpartners.com) is a leading pan-European private equity firm, operating through integrated teams based in Paris, Hamburg, London, Milan and Geneva. The BC European Capital VII funds have total commitments of €4.3bn, one of the largest buyout funds in Europe to date. Over 17 years the firm has developed a long track record of successfully acquiring and developing European businesses in partnership with management, investing in 56 acquisitions (of which 17 have been in France) with a combined enterprise value of €32bn.