Target Information

SOS Accessoire, headquartered in Maurepas, France, is Europe’s leading platform for domestic appliance parts and DIY repair guidance. The company has made a strategic acquisition of the IRIS group, a supplier of spare parts primarily to professional appliance repair technicians. With an impressive revenue of €62 million in 2023, the IRIS group operates across France, Belgium, and Germany, and consists of two key companies: SDS, which is the second-largest provider of domestic appliance parts in France, and Vedelec, the top distributor in Belgium. This acquisition enables the newly formed group, Ecoparts, to generate an annual revenue of €120 million and positions it as a significant player in Europe’s spare parts market.

The acquisition marks a transformative growth opportunity for SOS Accessoire, following 15 consecutive years of 40% annual growth and being recognized in the Financial Times’ Top 100 fastest-growing European companies. The integration aims to expand the company's reach into new markets and enhance its operational capabilities within Europe’s competitive landscape.

Industry Overview

The appliance spare parts industry in Europe is witnessing a significant transformation, driven by the increasing demand for sustainability and repairability in consumer products. As consumers are gradually shifting toward eco-friendly practices, the importance of spare parts availability for maintaining and repairing appliances has grown substantially. This trend is also bolstered by the European Union's legislation aimed at reducing electronic waste and promoting circular economy initiatives.

Additionally, the rise of e-commerce has reshaped the landscape, making spare parts more accessible to both consumers and repair professionals. The increasing online presence of retailers, along with technological advancements in inventory management and shipping logistics, has created a competitive environment that fosters rapid growth for companies operating within this sector.

In countries like France, Germany, and Belgium, leading players are embracing digital transformation to enhance customer experiences and streamline operations. This shift not only benefits businesses but also empowers customers to make informed purchase decisions, promoting a culture of appliance repair over replacement. As a result, the market for spare parts is expected to expand, with the growing awareness of sustainability among European consumers driving further demand for repair solutions.

Rationale Behind the Deal

The acquisition of the IRIS group by SOS Accessoire is rooted in a strategic vision to combine strengths in B2C and B2B distribution. This consolidation is viewed as a natural progression, as the complementary expertise of SDS and Vedelec aligns with SOS Accessoire’s existing operations. Olivier de Montlivault, the company’s President and Founder, emphasizes the intent to create synergies that will enhance international development and market penetration.

Furthermore, with a commitment to championing the circular economy, SOS Accessoire is poised to leverage this acquisition to foster growth while effectively addressing environmental sustainability issues. The transaction is strategically designed to enhance the company’s offerings and expand its presence in the European market.

Investor Information

The acquisition was facilitated by Transaction R&Co (Rothschild & Co) and involved both longstanding shareholders and new investors. Key stakeholders such as Starquest, Quadia (through the Regenero Impact Fund), and ETF Partners have remained supportive, while new participants, including SWEN Capital Partners, Amundi Private Equity Transition Juste, and Trocadero Capital Partners, have joined the investment table. The overall transaction totaled an investment of €50 million, complemented by financing from LCL Aquitaine.

SWEN Capital Partners, managing €8.3 billion, stands out as a responsible investor focusing on sustainable finance and value creation. Its alignment with SOS Accessoire’s growth strategy further solidifies the commitment to promoting a circular and low-carbon economy.

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This acquisition represents a noteworthy milestone for SOS Accessoire, leveraging extensive market knowledge and operational synergies between the two entities to create a robust platform poised for growth. By enhancing its capabilities and resources, SOS Accessoire is not only investing in its future but also contributing to the broader environmental agenda of reducing waste through appliance repair.

From an investment perspective, the alignment with sustainability goals and the circular economy positions SOS Accessoire and the newly formed Ecoparts group to benefit from increasing market demand for eco-friendly solutions. Given the substantial growth trajectory demonstrated by SOS Accessoire over the past years, this acquisition can be perceived as a prudent step toward reinforcing its market leadership.

Moreover, the backing from renowned investment partners brings credibility and financial strength, enabling SOS Accessoire to expand its operational scope and leverage new opportunities. This strategic move is anticipated to result in enduring profitability and market resilience, affirming the company’s commitment to making appliance repair a mainstream solution.

In conclusion, the acquisition of the IRIS group is expected to provide a solid foundation for SOS Accessoire to not only command a significant share of the European spare parts market but also drive positive environmental impact through responsible consumption patterns. The collective effort of all stakeholders involved is likely to yield long-term benefits in harmony with sustainability priorities.

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