Target Information

Founded in 1946 by the Brunel brothers and located in Wasquehal near Lille, Altaïr is a prominent European player in the production and distribution of specialty household cleaning products. The group reported revenues of €105 million (based on 2019 data) and employs approximately 400 people. Altaïr's product offerings are structured around five leading brands known for their strong market recognition:

• Starwax: Specialty cleaning products for the home
• Oro: Detergents, cleaning products, and insecticides
• Kapo: Household insecticides and pest control
• Sinto: Repair and renovation products
• Mistol: Dishwashing products

In France and Spain, Altaïr’s brands are distributed through large DIY stores, hypermarkets, supermarkets, traditional retail stores (independent drugstores), and various digital channels, including the platforms and its own website, Mamawax.fr. Additionally, Altaïr exports its products to over 50 countries, primarily in North Africa and Eastern Europe, which accounts for more than 25% of its total revenue. The company operates three production sites located in Noyelles-lès-Seclin near Lille, Aubagne, and Valencia, Spain.

Industry Overview

The European household cleaning products industry has been witnessing significant growth driven by increasing consumer awareness about hygiene and cleanliness. With an evolving market landscape, companies are focusing on product innovation, sustainability, and competitive pricing to cater to a diverse consumer base. Consumers are increasingly inclined towards eco-friendly and sustainable cleaning products, leading to the emergence of new market players.

In France and Spain, the household cleaning products market is characterized by a mix of established brands and emerging entrants. Key players are investing in advanced technologies and marketing strategies to enhance product visibility and customer engagement. The proliferation of e-commerce channels has further facilitated the distribution of cleaning products, enabling consumers to access a wider range of brands and products.

Moreover, the COVID-19 pandemic has accelerated demand for household cleaning products as consumers prioritize hygiene and cleanliness at home. This trend is likely to continue, positioning companies well for future growth. The sector is also seeing an increasing emphasis on corporate social responsibility (CSR), with many companies implementing sustainability measures in production and packaging.

Rationale Behind the Deal

The acquisition of Altaïr by the funds advised by Motion Equity Partners in 2016 aimed to position the company for international expansion, as its revenue outside France was only 10% at the time. Motion Equity Partners actively supported Altaïr in executing a robust growth strategy that included both organic and external initiatives, ensuring that the company could expand its footprint in the European market.

Under Motion’s guidance, Altaïr successfully executed three external growth operations outside France, including the landmark acquisition of Oro in Spain, which significantly enhanced Altaïr’s market position and synergies. This strategic move transformed Altaïr into a leading European household cleaning product provider by 2017, while simultaneously reinforcing the company's governance structure with strategic leadership appointments.

Investor Information

Motion Equity Partners is a private equity firm that specializes in supporting medium-sized companies in their growth and transformation journeys. With a focus on the consumer goods sector, the firm brings significant expertise in developing and implementing operational improvements, strategic acquisitions, and international expansion. Since partnering with Altaïr, Motion Equity Partners has proven to be instrumental in driving the company’s growth trajectory through a well-structured approach.

Patrick Eisenchteter, Managing Partner of Motion Equity Partners, emphasized the transformation of Altaïr into a leading company within the industry since their initial investment. Motion's extensive experience in international acquisitions allowed Altaïr to significantly enhance its competitive advantage in a fragmented market.

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The partnership between Altaïr and Motion Equity Partners represents a compelling case of successful private equity investment. The strategic acquisitions made during this partnership have solidified Altaïr's position in the market, transforming it into a robust player in the European cleaning products industry. The initiatives taken toward organic growth and sustainability have further diversified the company’s offerings and improved its market reach.

The management team's ability to integrate and leverage acquired brands like Oro and Mistol suggests a sophisticated operational strategy that bodes well for future growth. With increased focus on digital channels and eco-friendly products, Altaïr is well-positioned to meet evolving consumer demands, making it a solid investment opportunity.

Now, as Motion Equity Partners transitions ownership to Eurazeo PME, the foundation set is likely to facilitate continued momentum for Altaïr. The new partnership is expected to bring additional resources and strategic insights, enabling the company to accelerate its growth trajectory.

In summary, the investment in Altaïr appears to be a good one, given the company’s solid performance under Motion's stewardship, the successful implementation of strategic growth initiatives, and the favorable market dynamics currently at play. The combination of the established market position and the capabilities of Eurazeo PME suggests a positive outlook for Altaïr’s future.

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