Information on the Target

Agora Makers is a prominent pan-European company based in France, specializing in the design and manufacturing of public lighting and street furniture solutions. With a legacy spanning over 180 years, Agora represents a collective of esteemed brands, such as Eclatec, GHM, Metalco, Bellitalia, and CityDesign. The firm is committed to enhancing urban environments by providing innovative solutions that balance aesthetics and functionality, addressing the needs of communities, urban planners, and architects.

The company's recent trajectory has been impressive, with significant growth attributed to strong organic expansion and strategic acquisitions. Under the leadership of CEO David Lelièvre, Agora has successfully multiplied its EBITDA approximately 2.5 times since Hivest Capital's initial investment in May 2022. The brand portfolio has been bolstered through the addition of street furniture capabilities and smart lighting solutions, which align with contemporary trends in urban development.

Industry Overview in France

France's public lighting and street furniture sector is witnessing remarkable growth, driven by rising demands for sustainable urban development and smart city initiatives. As cities evolve, there is an increasing emphasis on creating public spaces that prioritize safety, aesthetics, and energy efficiency. This has prompted a surge in investments aimed at enhancing the infrastructure of urban environments.

The push for environmentally sustainable practices is further supported by governmental policies and regulations that encourage innovation in design and the use of eco-friendly materials. Companies that focus on these aspects are likely to gain a competitive advantage, as they align with both consumer preferences and legislative frameworks aimed at reducing carbon footprints.

Moreover, advancements in technology have enabled firms in this sector to incorporate smart lighting solutions that enhance energy efficiency and improve public safety. This technology integration not only adds value to the products offered but also enhances the quality of life in urban settings, a crucial factor in today’s market landscape.

Consequently, Agora Makers stands to benefit from these industry dynamics, with its commitment to innovation and sustainability positioning it well for continued growth. The firm’s expansion into both Western and Eastern European markets indicates its ambition to leverage these favorable conditions beyond its domestic operations.

The Rationale Behind the Deal

The decision by Hivest Capital Partners to sell its majority stake in Agora Makers to a newly established continuation fund stems from a strategic alignment with the firm’s long-term vision. This transaction enables Hivest to secure a robust return on its investment while simultaneously providing Agora with fresh capital to pursue its ambitious growth strategy.

This continuation fund will allow Agora to explore an array of organic and external growth opportunities, particularly through mergers and acquisitions, enhancing its market presence in the public lighting and street furniture sectors. The additional resources will further strengthen Agora's position as a leader in the industry, facilitating its expansion into new geographies.

Information About the Investor

Hivest Capital Partners is an independent private equity firm based in Europe, authorized by the French Financial Markets Authority (AMF). The firm specializes in buyout and expansion projects, focusing on small to medium-sized enterprises (SMEs) with revenues ranging from €50 million to €500 million. Hivest Capital's investment philosophy is rooted in enhancing operational performance and driving growth strategies to help businesses realize their full potential.

With a commitment to fostering innovation and sustainability, Hivest Capital has successfully supported Agora Makers in its growth journey. The firm’s extensive industry expertise and strategic management have played a pivotal role in Agora’s recent achievements, demonstrating Hivest's capabilities as a value-driven partner in the private equity landscape.

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The recent transaction involving Agora Makers and Hivest Capital Partners is viewed as a promising development with strong potential for value creation. Hivest’s ability to realize a successful exit just two and a half years after its initial acquisition reflects the sound investment strategy and growth trajectory of Agora. The substantial increase in Agora's EBITDA underlines the effectiveness of Hivest's management and operational improvements.

Additionally, the decision to establish a continuation fund suggests confidence in Agora's future growth prospects and a commitment to further explore market opportunities. By attracting new investors alongside existing stakeholders, Agora is well-equipped to execute its strategic plans for expansion and innovation, particularly in smart city applications.

The emphasis on sustainability and technological advancement positions Agora Makers favorably within an industry set to grow significantly in the coming years. The demand for efficient public lighting and urban furniture solutions will likely rise, strengthening Agora's market share and enabling sustained growth.

In conclusion, this deal not only represents a solid return for existing investors but also sets the stage for Agora Makers to enhance its competitive edge and explore new avenues for profitability. The alignment of Hivest Capital’s goals with Agora's vision establishes a collaborative approach that bodes well for the company's future.

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