Information on the Target

Founded in 1949, STG Group is a leading player in temperature-controlled transport and logistics, experiencing nearly uninterrupted growth since inception. The company generates a revenue of approximately €400 million and operates a fleet of over 1,600 vehicles, supported by a workforce of 3,500 employees. STG has solidified its position as the second-largest market entity, founded on strong entrepreneurial and human values, highly skilled teams, recognized expertise by its clients, and a robust network with strategically located operations across the country.

Industry Overview in France

France’s logistics and transportation sector is undergoing significant transformations, driven by changing consumer demands and advancements in technology. The temperature-controlled logistics industry is particularly poised for growth, fueled by an increasing emphasis on the quality and safety of perishable goods. Rising awareness of environmental issues is pushing companies to adopt sustainable practices, leading to innovations such as “zero CO2” production and enhanced tracking systems.

The logistics market in France is characterized by a healthy competition among established players and new entrants, all aiming to capture market share in a fast-evolving landscape. Digitalization and automation are at the forefront of this shift, facilitating more efficient supply chain management and inventory control, while also catering to the demand for bespoke services in temperature-sensitive shipments.

Moreover, the COVID-19 pandemic has accelerated the need for robust supply chains, highlighting the essential role of logistics providers in maintaining business continuity. With growing demand in sectors such as food delivery, pharmaceuticals, and e-commerce, temperature-controlled logistics has become more critical than ever.

Lastly, governmental policies aimed at supporting the logistics sector through infrastructure investment and regulatory reform are expected to bolster the industry’s growth, creating opportunities for strategic partnerships and targeted acquisitions.

The Rationale Behind the Deal

The decision for the Gautier family to sell 75% of STG Group's capital to Hivest Capital Partners, advised by Adviso Partners, was primarily driven by the need for additional funding to enable the company’s growth. Partnering with Hivest Capital, which retains a minority stake of 25%, allows for the initiation of an ambitious industrial project under a new management team. This strategic alliance aims to navigate the evolving challenges in temperature-controlled logistics.

The new leadership, composed of industry veterans like Jean-Paul Onillon and Franck Maso, will focus on enhancing operations and steering the company towards innovative areas such as digital services and sustainability.

Information about the Investor

Hivest Capital Partners is an independent French private equity firm known for its focus on supporting companies in their growth journeys. The firm invests in various sectors with an emphasis on fostering innovation and promoting long-term development strategies. Hivest Capital aims to leverage its financial resources and strategic insight to help STG Group navigate the dynamic landscape of temperature-controlled logistics and achieve its developmental objectives.

The firm's approach includes collaborating closely with management teams to implement growth strategies and ensure operational excellence, ultimately enhancing the value propositions for stakeholders. Hivest Capital’s involvement grants STG the necessary backing to pursue strategic partnerships and targeted acquisitions that align with its expansion goals.

View of Dealert

From an investment perspective, the acquisition of a majority stake in STG Group by Hivest Capital Partners appears to be a prudent decision. The logistics sector, particularly focused on temperature-controlled services, is on the cusp of significant evolution, fuelled by technological innovation and changing consumer expectations. Hivest's backing provides STG with access to crucial capital that can facilitate its strategic initiatives, particularly in enhancing capabilities aligned with sustainable practices and digital transformation.

Moreover, the leadership transition with seasoned professionals at the helm presents a promising opportunity for revitalizing company operations and exploring new markets. Their expertise could prove indispensable in navigating the complexities of the logistics landscape and addressing emerging industry trends, ensuring STG remains competitive.

However, the success of this investment will depend on the implementation of the ambitious industrial project and the ability to adapt to rapidly changing market demands. If executed successfully, STG Group has the potential to further solidify its position in the national and international arena, making it a compelling case for investors looking for growth opportunities in a resilient sector.

View Original Article