Eurazeo’s revenues rise to €830m in third quarter

French investment firm Eurazeo’s consolidated revenues rose across the board with buyouts contributing 97.1 percent. The firm recently rejigged its financing package for its €2.3 billion Elis bid in response to the credit crunch.

Eurazeo earnings rose in the third quarter compared with the same period last year.

Its revenues were up 36.7 percent on a pro forma basis and 22.7 percent in the consolidated accounts to €831.5 million ($1.216 billion) in the three months to the end of September on the same period last year.

The French investment firm’s revenues for the first three quarters were also up 29.6 percent on a pro forma basis and 58.2 percent in the consolidated accounts to €2.049 billion from €1.581 billion and €1.296 billion last year.

The revenues for the third quarter were divided between €807.4 million from private equity, €18.5 million from real estate and €5.6 million from the firm’s shares in itself. Private equity revenues were up 34 percent and 20.2 percent from €602.7 million pro forma and €671.8 million reported in the same period in 2006.

Eurazeo agreed a recommended offer for work clothing hire company Elis with PAI partners on 8 August 2007 for €2.276 billion. Elis’ revenues of approximately €950 million in 2006 to 2007 are not included in the results.

Eurazeo invested €392 million of equity in the deal while its co-investment fund invested €75 million.

The acquisition had €1.85 billion of debt underwritten by French bank BNP Paribas. This was recently reflexed to include a larger tranche of mezzanine debt to help complete the deal in changed credit market conditions, according to Eurazeo’s spokeswoman. She said “this was rejigged within the constraints of the agreed financing.”

The firm’s consolidated revenues also excluded global electrical business Rexel and vehicle hire company Fraikin, in which Eurazeo has 21.4 and 15.9 percent stakes. Rexel’s reported revenues were up 3.5 percent to €7.982 billion, while Fraikin’s revenues were up 4.6 percent to €365.4 million on last year.

Partially-listed Rexel is jointly owned by Eurazeo, which has a 74 percent combined stake in the company alongside fellow owners US buyout firm Clayton Dubilier & Rice and the captive buyout fund of US bank Merrill Lynch. Rexel made a recommended offer for European rival Hagemeyer at €3.1 billion earlier this week. The bid’s debt is fully funded by a consortium of six banks.

Car rental company Europcar had revenues of €616.8 million, at parking business APCOA they were €147.9 million, while hotel business B&B Hotels’ earnings were €42.7 million. Other portfolio companies’ revenues were undisclosed.

The group’s portfolio was valued at €1.381 billion in private equity, €766 million in listed private equity, €781 million in real estate and €1.973 billion in other listed assets. It also had €505 million in cash and €56 million in treasury shares. The aggregate value of its assets before and after tax was €5.476 billion and €5.236 billion respectively.