Target Information

Serapid, a global leader in heavy load transfer technology based on rigid chain systems, has successfully secured new financing comprising a unitranche debt of €21.7 million, along with an additional €10 million growth credit line. The entire debt issuance was contracted by Zencap, a European pioneer in real economy financing that specializes in unlisted debt. This financing will also be subject to several ESG criteria, including measures to reduce the company’s carbon emissions, which may influence the cost of the financing.

Following its acquisition by management team Emeric Labesse and Guillaume Davies, along with LBO France, Serapid has strengthened significantly, notably through the launch of a new elevator offering that has already generated over €10 million in revenue within just five years. By leveraging a strong culture of innovation, the group continuously enhances its product offerings, providing a unique range of precise, compact, and rigid solutions tailored to meet the demanding requirements of its esteemed clientele.

Industry Overview in France

The heavy load transfer technology industry in France is witnessing a transformation, driven by increasing demand for innovative and sustainable solutions. With the acceleration of industrial activities and the growing trend towards automation, companies are investing in advanced technologies that provide efficiency and effectiveness in material handling. This market is characterized by a heightened emphasis on reducing carbon footprints and enhancing operational efficiencies, pressing manufacturers to adopt eco-friendly practices.

In recent years, the industry has seen a surge in the adoption of electric and hybrid technologies, aligning with broader environmental goals set by the European Union. The shift towards sustainable manufacturing operations is necessitating businesses to innovate continually. As a result, companies like Serapid are not only focusing on expanding their product range but also on adopting greener technologies that align with the economic transition.

Furthermore, France's strategic initiatives aimed at fostering innovation and supporting industrial growth have created a conducive environment for the heavy load transfer technology sector. Government policies encourage investments in cutting-edge technologies and promote sustainable practices, making it an attractive landscape for both existing players and new entrants.

As the industry continues to evolve, collaboration with investment firms and strategic partners proves essential for accelerating growth. Companies are leveraging external funding sources to expand their operations, improve technological capabilities, and address environmental concerns effectively.

Rationale Behind the Deal

The deal with Zencap serves as a crucial step for Serapid in its ambition to enhance operational visibility and financial flexibility. By securing this unitranche financing, Serapid aims to capitalize on the high demand for its innovative products and expand its market reach while addressing the pressing need for eco-friendly solutions in heavy load transfer technology. The collaboration fosters an opportunity for the company to consolidate its leadership position globally and distinguish itself in the transition towards sustainable industrial practices.

Moreover, the ongoing transformation and growth spurts within Serapid underscore the potential for significant profitability and market expansion, making it an attractive prospect for investors. By committing to responsible investing in accordance with ESG criteria, Zencap can align its organizational values with Serapid's strategic direction.

Investor Information

Zencap Asset Management, a subsidiary of OFI Invest and part of Aéma Group, is a specialist firm focused on unlisted debt and committed to responsible investment practices. Since its inception in 2009, Zencap has engaged in various financing solutions, spanning real estate assets, infrastructure projects, and small to mid-cap enterprises. As of December 31, 2023, Zencap managed close to €4 billion in assets, showcasing its robust presence in the market.

With a focus on delivering flexibility and support to companies during their growth phases, Zencap is well-positioned to assist Serapid in executing its strategic plan and achieving its growth objectives. The firm’s expertise in the unlisted debt market, combined with its commitment to responsible investing, provides a strong foundation for fostering valuable partnerships that drive sustainable growth.

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The investment by Zencap into Serapid appears to be a sound decision. The ongoing transformation within Serapid, along with its commitment to innovative and environmentally sustainable products, positions the company favorably in a competitive industry. The financial support from Zencap will not only aid in strengthening Serapid’s operational capabilities but also enhance its market presence internationally.

Given the current market dynamics, the push towards eco-friendly solutions presents ample opportunities for growth. Serapid's strategic initiatives align with these trends, suggesting that the company is not only capable of meeting market demands but can also lead in innovation within the sector. Zencap’s involvement reinforces the potential for profitable returns on investment.

In conclusion, this deal signifies more than just a financial transaction; it represents a collaborative effort to drive growth while adhering to sustainability standards. With the right management and strategic execution, Serapid, powered by Zencap’s funding, has the potential to achieve remarkable milestones in the coming years, making this investment a noteworthy prospect.

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