Founded by Thierry Ortmans in late 1998, Compagnie Européenne de Prestations Logistiques (CEPL) is the European leader in automated multi-product order preparation, serving large corporate customers in the perfume, cosmetics, recording, footwear, apparel, publishing and high-tech industries.


Thierry Ortmans, Chairman and Founder of CEPL

Why did you choose Sagard?

CEPL was looking for a primary shareholder with three objectives in mind:

  • To unlock part of the company’s value.
  • To find a partner to help us expand into the European market.
  • To gain the backing of a sustainable primary shareholder with an industrial vision.

Sagard fulfilled all of these criteria:

  • A strategy that was more industrial than financial in nature.
  • Investors who came from major industrial families.
  • A long-term vision.
  • An exceptional network.
  • Professionals with highly complementary skills and experience runningcompanies.

The ability to assign a team capable of understanding CEPL’s business.

Why has Sagard invested in CEPL?

Sagard invests in niche companies…

CEPL is the only company in the world that has the highly specialized expertise required by its business.

…that have the ability to drive growth and increase profitability.

  • A fast growing market underpinned by rising demand from large corporations for supply chain outsourcing solutions.
  • A motivated entrepreneur backed by an outstanding team.
  • Highly-specialized expertise that has enabled customers to improve order fill rate and reduce costs at every warehouse outsourced to CEPL.
  • An empowered management team and an ambitious incentive program for all employees.

 

The company:

An innovative, family-run SME

In 2005, CEPL owned 10 warehouses, employed 1,000 people and reported €82 million in revenue.

The transaction:

Sagard completed the acquisition of CEPL on 28 February 2005, contributing 60% of the acquisition capital alongside Thierry Ortmans (25%) and CEPL management (15%), which took advantage of the buy-out to increase their stake in the company. Debt financing was provided by RBS.

Outcome:

From a French SME to a European industrial enterprise

After three and a half years of close cooperation between the Sagard and CEPL teams, the company has tripled in value.

CEPL in 2008

  • Five-year business plan fulfilled in three and a half years.
  • Number of warehouses multiplied by 2.3.
  • Revenue doubled to €175 million.
  • Number of employees doubled to 2,200.
  • EBITDA multiplied by 2.2 to €45 million.
  • Solid presence established in Germany.

Support provided by Sagard until divestment

After successfully moving into the rest of Europe with Sagard’s support, CEPL’s Chairman asked Sagard for assistance in finding a new shareholder capable of helping the company to expand more quickly outside Europe.

  • To assist CEPL in organising the right solution, Sagard seconded a team of three people to the company for nine months. In the end, CEPL chose Arcapita, a Bahrain-based corporateinvestment fund that has experience in logistics and owns five million square meters of warehouse space worldwide.
  • As part of this secondary LBO, the management team raised its stake in the company.

Sagard sold its interest in CEPL to Arcapita on 16 September 2008. Over the investment period, Sagard’s support had enabled the company to:

  • Secure the long-term viability of its capital base, thereby ensuring the company’s solidity.
  • Attract new customers by leveraging Sagard’s extensive network.
  • Set up a financial department and deploy a sophisticated reporting system.