Information on the Target

Pilocap, established in 1993, is a leading professional training provider in France, specializing in risk prevention. The company focuses on key areas including heavy machinery operations (CACES®), electrical training, working at heights, and hygiene and safety protocols. With a strong presence in the southwestern region of France, Pilocap operates two centers in the Bordeaux metropolitan area and a third in Toulouse, earning a reputation for its high-quality training services and comprehensive course catalog.

Following several years of significant growth, Pilocap’s management team, led by Stéphane Hassoun and Jean-Marc Depeyre, who have been at the helm for over a decade, initiated a management transition as part of a financial operation. Although they are stepping back, both executives are reinvesting substantially in the company and will continue to drive its growth, handing leadership to Julien Larrazet, who successfully oversaw the opening of the Saint-Loubès center in January 2021.

Industry Overview in France

The training industry in France, particularly in the field of professional risk prevention, has been experiencing robust growth. As workplace safety regulations become increasingly stringent, companies are investing more in training programs to ensure compliance and enhance employee safety. This trend is further driven by an evolving labor market requiring continuous employee skill upgrades.

In recent years, the demand for specialized training providers has surged, leading to a rise in competition among training organizations. Companies are not only seeking compliance but are also emphasizing the qualitative aspects of training, such as customization and the ability to deliver hands-on experiences, which has created a favorable environment for established players like Pilocap.

The French government's commitment to occupational safety and the promotion of professional training schemes has also contributed positively to the sector. Government funding and incentives for organizations investing in training have catalyzed growth, presenting substantial opportunities for firms focused on this niche market.

Moreover, innovation plays a critical role; training solutions that incorporate digital tools and methods are becoming more prevalent. This highlights the need for traditional training providers to adapt and deliver modern learning experiences to stay competitive and meet customer expectations.

The Rationale Behind the Deal

This investment is strategically aligned with the shared vision of the investors and the management team of Pilocap to capitalize on the growing demand for specialized training. The capital infusion from Capital Croissance, Adaxtra Capital, and UI Investissement will facilitate the expansion of Pilocap’s territorial presence through new branches and franchise development.

By transitioning to new leadership under Julien Larrazet, the firm aims to accelerate growth and enhance service delivery. The investors see great potential in Pilocap’s business model, which integrates resources and training facilities, enabling a scalable structure conducive to further expansion.

Information About the Investor

Capital Croissance, through its vehicle Edelweiss Transition and Impact I, has targeted investments in companies poised for growth in sustainable sectors, particularly those emphasizing human values and entrepreneurship. This investor is known for its deep industry experience and commitment to enhancing the businesses within its portfolio through strategic guidance and resources.

Alongside Capital Croissance, Adaxtra Capital and UI Investissement bring additional expertise and financial backing to the consortium, strengthening the overall capacity to support Pilocap's growth initiatives. This collaboration reflects a commitment to fostering responsible investment practices while pursuing financial returns.

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This deal presents a promising investment opportunity. Pilocap's established reputation in the growing training sector and its strategic vision aligns well with the investors' goals. The influx of capital supports not only operational scaling but also allows for the enhancement of training services through modern methodologies.

The focus on internalizing resources positions Pilocap favorably against competitors, thereby enabling better control over service quality and customer satisfaction. As the training market in France continues to evolve, Pilocap’s adaptability will be key to ensuring sustained growth.

Moreover, the management transition under Larrazet appears to be a well-thought-out move that bodes well for the company's forward trajectory. His recent successes highlight his capacity to lead and innovate, instilling confidence among investors and stakeholders alike.

In conclusion, the combination of an experienced management team, solid financial backing, and market growth trends create an optimistic outlook for Pilocap and its stakeholders. This deal could potentially yield significant returns as the training sector continues to expand within the risk prevention landscape in France.

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