Isatis Capital, Société Générale Capital Partner and Bpifrance hand over to Crédit Mutuel Equity as majority investor in Milexia Group

After five successful years, which have seen the Milexia group more than double in size, Isatis Capital, Société Générale Capital Partner and BPIfrance are handing over to Crédit Mutuel Equity as the group's majority investor.

Milexia specializes in the value-added distribution of components, precision electronic and mechanical subsystems and scientific instrumentation. Targeting the defense, space, civil industry and research sectors in particular, Milexia provides its customers with technical expertise in the creation of customized solutions right from the project design phase, backed by a network of renowned manufacturers. The group has developed a high-potential business model, creating competitive advantage and business opportunities in growing markets.

Isatis Capital, Société Générale Capital Partner and Bpifrance had entered the group's capital in 2018, on the occasion of a minority LBO transaction. Managing partners Pascal Gandolfini, Mitia Cugusi and Dan Benzaquen were looking for partners to accelerate the group's growth, structure its governance, and initiate an external growth strategy with a view to pan-European consolidation. The entrepreneurs were won over by the complementary nature of the pool of investors.

A successful gamble! Five years later, the group has finalized its sixth acquisition. Starting in 2019, Milexia has established itself in the UK with the acquisition of Sematron, will strengthen its position there with the purchase of Microtek in 2022, and will enter the German market in 2021 with the acquisition of Globes. At the same time, the Group has strengthened its positions in its home countries with the acquisitions of Astar in Spain in 2020, PKtronics in France in 2021 and CEL in April 2023. Through these acquisitions, Milexia has been able to diversify its product and service offering in satellite communication equipment, in the assembly of specific cables and connectors, and by addressing new markets such as railways. Milexia has more than doubled in size, exceeding sales of €140 million at the close of March 2023, almost half of which are generated abroad. This development is also the result of sustained organic growth.

At the same time, the Group has gradually structured itself, with the appointment of a Group CEO in 2021, Xavier Gaillard, and a European Codir. This change in operational governance has facilitated the integration of acquired entities and the deployment of synergies within the Group. Milexia now has a differentiating geographical and commercial coverage, providing a solid base for further development.

All shareholders are reinvesting in the new operation, alongside Crédit Mutuel Equity, the new majority shareholder following a process led by Lincoln. The prospects are indeed attractive, as Xavier Gaillard (Milexia Group CEO) points out: "The Milexia teams are highly motivated to pursue the company's development with renowned financial shareholders at their side, who will provide the means to accelerate our responsible growth strategy, focused on improving services and products for our customers, strengthening our manufacturer partnerships, and developing the expertise of our teams in France and Europe".

Nicolas Schwindenhammer and Nicolas Bugy (Isatis Capital) explain: "Milexia is positioned in an attractive market, which we know well, driven in particular by the increasing technological level of equipment in all industries. It also has the advantage of offering visibility over several years, with "program" logics. The combination of sector expertise and in-depth technical relations between Milexia's teams and R&D departments enables us to offer top-quality support - that's their great strength".

Pascal GANDOLFINI, (Milexia President) declares himself "Very happy with the success of this transition, very happy to have, all together, transformed Milexia into what it is now, on the way to more internationalization and well-being for our teams and our entire ecosystem. I would like to thank all Milexia's employees, but also our financial partners SGCP, Bpifrance and Isatis Capital who, since 2018, have strongly contributed to the acceleration of our transformation. I'm delighted to see them reinvesting alongside us, and to welcome CME to help us with the next stage of our development."