The Delachaux Group, CVC Capital Partners ("CVC") and Caisse de dépôt et placement du Québec ("CDPQ"), today announced that the Delachaux family and CDPQ have entered into an exclusivity agreement in order to acquire CVC Capital Partners Fund V's stake in the Delachaux Group. The initial public offering process initiated in May 2018 is therefore suspended. Following the transaction, the Delachaux family will consolidate its position as majority shareholder.
Commenting on the transaction, Guy Talbourdet, CEO of the Delachaux Group, said: "I am pleased to welcome CDPQ as a long-term shareholder and want to thank CVC for their contribution to our development. Since 2011, the Group has significantly strengthened its positioning, stabilised the operational profile of its activities and made its business model even more flexible. I look forward to working alongside CDPQ and the Delachaux family as we open a new chapter in the group's century-long history. With their support, the Group would be ideally positioned to capture the full potential of its markets."
Stéphane Delachaux, President of the Delachaux Group declared: "CVC has been a great partner and the Delachaux Group would strongly benefit from this new long-term partnership with CDPQ, one of the world's largest institutional investors. We have been highly impressed by CDPQ's understanding of our businesses and support of the group's strategy. This represents a new important step in the Delachaux Group history and an attractive alternative to the planned IPO."
Stéphane Etroy, Executive Vice-President and Head of Private Equity, CDPQ, said: "The Delachaux Group is a leader in sectors that serve as the building blocks of our global economy. We are especially attracted by the company's direct contribution to sustainable mobility and industrial efficiency, which are two areas that we deeply believe in and that are actively supporting through our investments. The company's strong culture of entrepreneurship and focus on growth over the last century have allowed it to continuously innovate, and these are aspects of its DNA that have been paramount to its success in an ever-changing world."
The completion of this transaction will be subject to the satisfaction of customary regulatory conditions and the execution of the final documentation is to occur after the consultation of works council pursuant to applicable law.