Revitalized B&M Business Expanded EBITDA 10x
LOS ANGELES & PARIS — OpenGate Capital, a global private equity firm, announced today the close of its sale of Bois & Matériaux (“B&M”) to Chausson Matériaux, a major building materials distribution company. The agreement was initially signed in January 2021 and terms were not disclosed.
With headquarters in Pacé, France, and more than 130 branches in the country, B&M is one of the leading building materials distributors in France. During the five-year period the business was owned by OpenGate, the business was fully revitalized under the leadership of CEO Yves Martin, and with the support of OpenGate’s operations team.
Julien Lagrèze, Partner and Head of Europe at OpenGate Capital, commented, “When we first looked at B&M, we saw a business that was underperforming and had vast opportunity. Our deep knowledge of investing in France and understanding of the building materials market motivated us to acquire the operationally complex business. OpenGate’s strategy focused on bottom line improvement, building a stronger, more resilient business with improved operations, and seamlessly integrating with management in a short time since consummating the acquisition. I want to thank CEO Yves Martin and the OpenGate team for their tremendous accomplishments.”
Throughout OpenGate’s ownership, the business experienced significant EBITDA growth. At acquisition, the business had approximately €5.8 million of EBITDA. Following the sale of a non-core business line, Guimier, in 2017, EBITDA was approximately €2.4 million. From the period 2017 through the end of 2020, B&M’s EBITDA expanded to €28.6 million, representing an increase of 10x in three years. This transformational growth was achieved through the execution of OpenGate’s investment thesis and operational process during a cycle of turbulent market conditions including the global pandemic. Operational achievements include:
- Completing a carve-out and transition from UK-based parent company
- Closing non-profitable branches
- Improving purchasing through a rationalization of the product range and supplier base
- Implementing a sales efficiency program to improve the sales organization, processes and tools
- Streamlining the back office functions and organization
- Creating a new, fully optimized logistic platforms
- Developing an innovative digital pricing tool in order to preserve and optimize margin
B&M CEO Yves Martin stated, “The partnership was completely different from other private equity firms. From the outset, OpenGate understood B&M, and the fast start was attributed to their operations and M&A teams collaborating. OpenGate’s presence in both the United States and Europe, with the French team very rooted into the nuances of the local market, gave us confidence at the onset of our relationship. OpenGate was resilient and patient, allowing B&M time to implement change in the best manner, which is not the normal private equity approach.”
“With the exit, B&M is at one of the most interesting periods in the French building materials sector in years. It was built as the second national business in the country with no room for a number three player. The sale to Chausson paves a new, bright future with access to the best projects in France or pan-European in the next 10 years,” said Martin.
B&M has more than 2,100 employees and operations across the northern region of France with two main networks: Réseau Pro and Panofrance.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation, and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California, with a European office in Paris, France. OpenGate’s professionals possess the critical skills needed to acquire, transition, operate, build, and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buyouts, special situations, and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.
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