Information on the Target

The SARDELLI Group, founded in 1979, is an independent construction specialist focused on major works for public establishments in the Île-de-France region, particularly in Val-de-Marne (94). The group consists of three autonomous entities, with Ets. SARDELLI being a general contracting firm that specializes in construction projects aimed at public spaces, such as hypermarkets and large commercial areas. Their services include high-quality renovations, restructurings, enhancements, and extensions, along with building individual homes. Additionally, the group operates TRIOMAT, a specialized store for construction materials, and possesses its own design office.

Operating in a niche market that includes projects in areas accessible to the public, SARDELLI Group achieved a revenue of over €15 million in 2016, supported by a workforce of 40 employees across its three branches.

Industry Overview in France

The construction industry in France has seen steady growth, driven by recovery in both residential and non-residential sectors. Despite facing challenges such as regulatory changes and economic fluctuations, construction firms have adapted by diversifying their offerings and focusing on sustainability. The French construction market is characterized by a mix of established players and independent firms specializing in various niches, with a rising emphasis on environmentally friendly practices.

In the recent years, the demand for public infrastructure and facilities has surged, leading to an increase in funding and investment opportunities. The French government’s commitment to enhancing public services and facilities has fueled projects aimed at renovating and upgrading existing structures, which greatly benefits firms like SARDELLI.

Moreover, the trend toward urbanization has highlighted the importance of construction companies that can cater to public establishments, particularly in densely populated areas like Île-de-France. As construction activity is primarily labor-intensive, the current labor shortages experienced in the industry present both a challenge and an opportunity for growth for firms capable of attracting skilled workers.

The Rationale Behind the Deal

The acquisition of the SARDELLI Group by GRB is a strategic move to expand their capacity in the public establishment segment while enhancing their presence in the Île-de-France market. This merger is set to not only diversify GRB's portfolio but also enhance overall service offerings in renovation and construction projects, aiming for a targeted revenue of €50 million by 2020.

The opportunity to leverage SARDELLI's established reputation and expertise in major works presents GRB with a competitive edge, allowing for a broader client base and increased project size. The consolidation of operations is expected to yield operational efficiencies and stimulate growth through synergies.

Information About the Investor

BTP Capital Investissement has been a key ally for GRB since 2015, providing essential support and resources that have fostered significant growth. The firm specializes in investing in companies within the construction and building sector, facilitating acquisitions that enhance market positioning and operational capabilities.

With a strategic focus on fostering development within its portfolio companies, BTP Capital Investissement plays a crucial role in the expansion efforts of GRB, supporting its ambition to become a leader in the Île-de-France construction market.

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This acquisition presents a compelling investment opportunity, primarily due to the strategic alignment of GRB and SARDELLI in terms of market focus and operational capabilities. The deal mitigates risks by consolidating resources and expertise while positioning the combined entity for increased market share in a robust construction sector.

The positive trend in the niche area of public establishments coupled with increased government support for infrastructure projects enhances the future prospects for the newly formed group. By leveraging synergies between the two companies, GRB is poised to improve operational efficiencies and drive profitability.

Furthermore, the backing from BTP Capital Investissement enhances confidence in the transaction, as they bring valuable insights and financial support to ensure successful integration and growth post-acquisition.

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