La Caisse de dépôt et placement du Québec (CPDQ) and the Public Sector Pension Investment Board (PSP Investments) will each acquire a significant minority stake in Fives, SA, a global industrial engineering group headquartered in France, which designs and supplies engineered machines, process equipment and production lines for the world’s largest industrial players.
Financial terms were not disclosed. Fives was reportedly valued at €1.5 billion in the auction-sale by Ardian, managed by BNP Paribas.
Fives will remain controlled by its management led by Frédéric Sanchez.
Ardian, formerly AXA Private Equity, acquired 45% of Fives in 2012 from Charterhouse, with Fives management becoming controlling shareholder. Ardian will continue to be part of the new shareholding structure, as a minority co-investor.
photo credit: Fives
Canadian Institutional Investors CDPQ and PSP Investments Sign an Agreement with Management and Ardian to Acquire Significant Minority Stakes in Industrial Engineering Group Fives
MONTRÉAL, DECEMBER 22, 2017 share
La Caisse de dépôt et placement du Québec (“CPDQ”) and the Public Sector Pension Investment Board (PSP Investments), two of Canada’s largest pension investment managers, today announced a joint investment in Fives, a global industrial engineering group headquartered in France, which designs and supplies engineered machines, process equipment and production lines for the world’s largest industrial players. CDPQ and PSP Investments will each acquire a significant minority stake in Fives, which will remain controlled by its management, to support the next development phase. Ardian, a world-leading investment house, will continue to be part of the new shareholding structure, as a minority co-investor.
Founded in 1812, Fives has participated in the modernization of various global industries, including steel, aluminium, cement, energy, and more recently, the automotive and aerospace industries, as well as logistics. The group’s rich history is grounded in constant innovation, development of proprietary technologies, international expansion and a pioneering spirit. This enables Fives to have a comprehensive global vision of the various industries in which it operates, as well as strong expertise in the design of critical equipment and solutions for industrial processes.
Today, Fives is at the forefront of innovation, taking a leading role in the “Industry of the Future” with a unique focus and expertise in digitalisation, automation and robotics to optimize industrial processes. with a network spanning four continents, the group possesses a balanced global footprint. For the year ending December 2017, the group is expected to generate over EUR1.8 billion (CAD$2.7 billion) in sales, across North America (30%), Europe (30%), Asia (22%) and the Middle-East and Africa (18%).
This transaction offers CDPQ and PSP Investments the opportunity to become important partners, contributing to the continued development of Fives’ solutions, designed to improve the overall performance of industrial plants, including the optimisation of the energy and resource efficiency and environmental footprint. The partnership with CDPQ and PSP Investments will provide Fives with the necessary resources to finance its mid- and long-term expansion plans through major growth avenues, particularly in markets like Intralogistics, as well as leverage its recently developed breakthrough technologies.
Frédéric Sanchez, Chief Executive Officer of Fives Group, said: “In the past years, with the full support of Ardian, we have invested heavily in R&D and business development, both in terms of portfolio products and geographical reach – reinforcing our leadership in our core markets and expanding our offer in adjacent booming segments such as FAW (Fully Automated Warehouse), as well as establishing AddUp, a promising platform with Michelin in metal 3D printing (additive manufacturing). Today, we are very enthusiastic to enter a new phase of our development with CDPQ and PSP Investments. Their long-term approach to investment, their deep valuable industrial insights and their strategic vision aligned with that of the management team make them ideal partners for the group, allowing Fives to take advantage, at a global scale, of the full potential of our diversified operations.”
“For over 200 years, Fives’ technology has changed the way the industrial world operates”, said Stephane Etroy, Executive Vice-President and Head of Private Equity at CDPQ. “We are impressed by the company’s ability to continuously adapt, innovate and expand worldwide within the context of rapidly changing technological landscapes. Alongside Frederic Sanchez, his management team, and our partner PSP Investments, we look forward to contributing to the industrial advancement and improved resource efficiency through Fives.”
“We are excited to team up with Fives’ talented management team, led by Frédéric Sanchez, a true visionary in this sector, alongside our partners at CDPQ and Ardian,” said Simon Marc, Managing Director and Head of Private Equity at PSP Investments. “The transaction is a great example of partnership with successful entrepreneurs and like-minded, long-term investors. Fives has been at the forefront of innovation since its inception and we are looking forward to supporting its growth in the next industrial revolution.”
“Fives is an excellent company with a rich, unparalleled heritage,” added Dominique Gaillard, CEO of Ardian France and head of Ardian Direct Funds. “As a business, it continues to go from strength to strength and its focus on industry-leading innovation, combined with its pioneering spirit, positions it well for the years to come. We have achieved great things with Fives since we first invested. CDPQ and PSP Investments are ideal partners and, alongside Ardian, will contribute significantly to its continued development.”
The completion of the transaction remains subject to approval by relevant regulatory authorities.
As an industrial engineering Group, Fives designs and supplies machines, process equipment and production lines for the world’s largest industrials including the logistics, aluminum, steel, automotive, aerospace, cement and energy sectors. Located in over 30 countries and with nearly 8,600 employees, Fives is known for its technological expertise and competence in executing international projects. Fives’ multi-sector expertise gives it a global vision of the industry which provides a continuous source of innovation. The effectiveness of its R&D programs enables Fives to design forward-thinking industrial solutions that anticipate clients’ needs in terms of profitability, performance, safety and compliance with environmental standards. This strategy is backed by a human resources policy that is focused on the individual, encourages initiative-taking, technical excellence and team spirit. For more information, visit fivesgroup.com or follow us on Twitter @fivesgroup or consult our LinkedIn pages.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2017, it held $286.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
ABOUT PSP INVESTMENTS
The Public Sector Pension Investment Board (“PSP Investments”) is one of Canada’s largest pension investment managers with C$139.2 billion of net assets under management as at September 30, 2017. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of Canada’s federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, Canada, PSP Investments has its principal business office in Montréal and offices in New York and London, its European hub. For more information, visit www.investpsp.com, Twitter @InvestPSP or LinkedIn.
Ardian is a world-leading private investment house with assets of US$66bn managed or advised in Europe, North America and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base. Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world. Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 490 employees working from twelve offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), North America (New York, San Francisco) and Asia (Beijing, Singapore). It manages funds on behalf of 610 clients through five pillars of investment expertise: Funds of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt. Follow Ardian on Twitter @Ardian www.ardian.com
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