GE Capital EMEA has signed an agreement with IPH Group to provide trade receivables financing for the company in France, Germany and the Netherlands. Using an innovative SPV structure GE Capital EMEA has been able to underwrite and hold 100% of the facility. The transaction was committed concurrently with the acquisition of the company by private equity sponsor, PAI.
“We are delighted to offer an innovative solution that will enable the IPH group to guarantee financing for its business in the context of its organic growth and its acquisition program both in France and in key European markets”
The SPV structure is targeted at European companies with an annual turnover of over 250 million Euro and with subsidiaries in a wide range of European countries including Germany, Belgium, the Netherlands, Luxembourg, Spain, France, Italy, Norway, Finland, Sweden, Poland, United Kingdom and Switzerland.
The French group IPH is the European leader in distributing industrial supplies to professionals. Set up in 1987 and historically based in Lyon, the group supplies its products and services through a multi-specialist and multi-brand network. The group is present in France, Germany, the Netherlands, Belgium and Romania. It employs over 3,000 people and generated a turnover of 895 million Euro in 2012.
Maurice Benisty, chief commercial officer, GE Capital EMEA, said: “GE Capital is one of the few pan-European debt providers able to deliver on such a wide range of working capital solutions. Our cross border product set targeted at both private equity and corporate borrowers includes factoring, corporate asset backed lending, revolving credit facilities and in this case securitization through an SPV structure. The IPH transaction is a landmark deal for us and we look forward to replicating its success across Europe.”
François Terrade, head of structured finance at GE Capital, said: "We are delighted to offer an innovative solution that will enable the IPH group to guarantee financing for its business in the context of its organic growth and its acquisition programme both in France and in key European markets."
Pierre Pouletty, IPH Group CEO, said: "GE Capital's six-year commitment, the European coverage of its financing platform and its ability to be extended to companies that the group will acquire in the coming years were the main criteria for choosing this solution."
GE Capital is a leading provider of specialist finance throughout the EMEA region, providing a wide range of solutions including: accounts receivable management, inventory finance, ABL, cross-border financing, leveraged finance, European leasing/vendor finance and fleet management. GE Capital focuses on sectors where it can share GE's 130+ year heritage with customers - energy, healthcare, media, transportation and industrial - and has a major footprint in EMEA, including an exciting $8 billion commercial finance joint venture with Mubadala in Abu Dhabi.
Better known under the names of Orexad and Anfidis in France, Zitec Gruppe in Germany, D’hont/Mano in Belgium, Biesheuvel Techniek in the Netherlands and Novotech in Romania, the IPH group has a turnover of €895m and employs 3,280 people.