IK Partners takes majority stake in BATISANTÉ

IK Partners entered into exclusive negotiations on 26 April 2022 to acquire a majority interest in Batisanté from LGT Capital Partners, investing through its ninth fund, at an enterprise value reported at €300–700M representing an EV/EBITDA multiple of 10x–18x on 2021 figures. Seven firm offers were submitted in an auction conducted by Rothschild & Co. Hayfin and Barings provided a unitranche facility of 100 to 120 million euros, with further commitments for acquisitions. Chief executive Nicolas Milesi, who joined in 2019, reinvested with his management team. Founded in 1987 and based at Neuilly-Plaisance, Batisanté carries out the inspections and maintenance French regulation imposes on buildings, across fire protection, pest control, technical surveys and, to a lesser extent, repair work. It employs around 500 technicians and works principally for managing agents of residential blocks in the Paris region, with social and commercial landlords accounting for roughly a quarter of revenue. Revenue reached €100–200M for 2021 with an EBITDA of €5–25M, or close to 20 million on an adjusted basis. The company had been rebuilt over the preceding decade. LGT Capital Partners took control at the end of 2010 through a continuation plan, after regulatory changes curtailed the asbestos surveying that had generated much of the group’s revenue and margin, causing a covenant breach. Having been the mezzanine lender in the buyout 21 Invest France led in 2006, LGT contributed more than 6 million euros of the 10 million the plan required, taking 63% of the capital, and bought out the remaining holders between 2014 and 2015. IK Partners intended to more than double the group’s size by extending beyond the Paris region, which accounted for three quarters of sales, with discussions already under way to acquire regional operators each generating around ten million euros of revenue.

The acquisition of BATISANTÉ is part of the growth strategy of IK Partners, which already has several external growth operations under its belt, notably Sofia Developpement in 2022.