ICG takes majority stake in Courtepaille

The transaction resulted from a debt-for-equity swap, culminating in Intermediate Capital Group (ICG) taking exclusive control of Courtepaille. The process originated from a 2011 Leveraged Buyout (LBO) in which ICG had provided a significant unitranche loan to finance the acquisition by the private equity firm Fondations Capital. Following the LBO, Courtepaille experienced slower-than-anticipated growth, leading to a disagreement between the majority shareholder, Fondations Capital, CM-CIC (entered in 2013) and the creditor, ICG, over the terms of the debt repayment. ICG contended that Fondations Capital was in breach of its loan covenants and consequently exercised its security rights by seizing the majority equity stake that had been pledged as collateral. This action was contested by Fondations Capital and a minority shareholder, CM-CIC Investissement, triggering a series of legal challenges across multiple jurisdictions, including Luxembourg, Paris, and Évry. The courts consistently ruled in favor of ICG, affirming the legality of its actions and dismissing the challenges from the existing shareholders. A final court order in September 2015 lifted a freeze on the company's governance bodies, thereby solidifying ICG's control. This event marked the conclusion of a complex financial restructuring where the primary creditor transitioned into the role of the controlling shareholder.

By taking control of Courtepaille, ICG continues its expansion strategy. Previously, the group had completed 3 acquisitions, including Stella in 2015.