News | By location

Thursday 30th September 2004

The Lowendal Group, one of the leaders in operational cost control consulting, has opened its capital to AXA Private Equity in order to pursue its strong growth and to provide an exit for the Astorg Fund. The Lowendal Group remains majority-held by Pierre Lasry, the 32 year-old founder and CEO of the group, alongside AXA Private Equity (with approximately 29%) and the group's principal managers (approximately 20%).

The Lowendal Group helps companies to identify corporate cost reduction opportunities and subsequently generate substantial savings in national insurance contributions, taxation, purchasing and general and administrative costs. The Group’s turnover as at 31 March 2004 was €24.4million. It has 215 employees located in offices in France (head-office), Spain, England, Italy and recently the US, and has posted annual average sales growth of 28% over the last five years.

The group has an excellent growth outlook on the back of the launch of new services designed to allow clients to exploit additional sources of cost savings. It is also entering new markets abroad and cross-selling its services among its five different areas of expertise. In addition, the Group plans to pursue external growth opportunities similar to the acquisitions it made with Point de Mire (2001) and Cesam (2002). AXA Private Equity's investment in the Lowendal Group will allow the company to consolidate its leading position in the operational cost control consulting segment.

Astorg Partners held one-third of the capital alongside the group's management and successfully backed the development of the Lowendal Group from 2001 until now. The senior debt has been arranged by Société Générale.

About the Lowendal Group
The Lowendal Group is a leading consulting firm in the field of operating cost reductions. Lowendal is dedicated to helping businesses generate cost savings in a number of areas such as national insurance contributions, taxation and general and administrative costs. The group is developing its offer within five specialist business services: Social Costs, VAT, Local Taxes, Overhead Cost Control and Innovation Financing. The group's services are remunerated exclusively on the basis of cost savings achieved by companies.

About AXA Private Equity
AXA Private Equity is a capital management company with an exclusive focus on unlisted investments. It has offices in Paris, Frankfurt, London and New York, and its expertise spans each sector of private equity (LBO, Venture Capital, Growth Expansion, Recovery and Primary and Secondary Funds of Funds).

AXA Private Equity manages and/or advises Private Equity funds with combined assets in excess of EUR 5 billion for the world's leading investors. With a constant focus on transparency, performance and sustainable profitability, AXA Private Equity is supported by the expertise of its staff and its international experience. This operation is the fifth investment for the AXA Expansion I Fund. Raised in 2003 and allocated EUR 65 million, AXA Expansion I is specialised in LBO operations involving small-caps as well as growth expansion operations.

About Astorg Partners
Astorg Partners is an independent investment fund management company, held and controlled by its four founding partners. It manages investment funds with combined total assets in excess of EUR 400 million. Astorg Partners invests in companies – in partnership with their management – to allow these companies to pursue their internal or external growth projects. In France, in particular, Astorg Partners is a recognised specialist in the field of sector consolidation, also known as "LBU" or "Buy and Build".

Principal participants in the operation
Lowendal Group's advisors:
Financial advisors: CCF Entreprise (Pierre Baelen and Jérôme Lefèvre).
Legal advisors: Clifford Chance (Dominique Bompoint, François Knoft and Sun Lee).
AXA Private Equity: Arnaud Dufer and Baudoin d'Hérouville
AXA Private Equity's advisors:
Tax and legal due diligence, and advice: Latham & Watkins (Olivier du Mottay and Emmanuelle Clidière).
Accounting and financial due diligence: Constantin (Cécile Rémy, David Soly and Nicolas Mestchersky).
Astorg Partners: Xavier Moreno and Christian Ambrosi
Legal advisors to Astorg Partners: SJ Berwin (Thomas Maîtrejean).
Bank financing: Société Générale: Patrick Evin, Jean-Marie Morin and Thibault de Chavagnac

If you should require further information, please contact:

Alexandra Tomassi - Lowendal group
Communications Director
Tel: + 33 (0)1 55 65 18 19
E-mail: atomassi@lowendalgroup.com

Xavier Moreno - Astorg
Tél: + 33 (0)1 53 05 40 30
E-mail: xmoreno@astorg-partners.com

Sylvie Deneubourg - AXA Private Equity
Communications Director
Tel: + 33 (0)1 44 45 92 20
E-mail: sylvie.deneubourg@axa-im.com