Information on the Target

The Sources Group, a key player in the design and construction of water treatment plants, has announced a new capital operation alongside Patrick Billette, the founder and CEO of the company, and key members of its management team. Founded in 2000, the Group is now embarking on a new phase of development, with ISALT entering as the lead investor through the Strategic Transition Fund. ISALT is owned 39% by the Caisse des Dépôts and 61% by its management team. This strategic partnership receives solid backing from historical financial investors, including Turenne Emergence, Bpifrance (Impact Environment Fund), and Isatis Capital, demonstrating their confidence in the Group's strategy and growth prospects.

Specializing in "turnkey" water treatment plants, Sources has historically focused on wastewater treatment for local authorities and water unions. Today, the Group also engages in the production of potable water, industrial wastewater treatment, waste management, as well as operation and service management and BIM Management.

Industry Overview in France

As water management emerges as a critical issue for regions across France, the Sources Group has established itself as a reference point capable of operating in both public markets and private industrial projects. With nearly 200 employees and 14 autonomous offices throughout the country, the Group ensures strategic proximity to its clients and optimal responsiveness on the ground.

Sources boasts in-depth technical expertise and innovative technologies, providing tailored solutions that meet the specific needs of both municipalities and industrial clients. With more than 500 completed turnkey water treatment plants, the Group has seen continuous growth, positioning itself as one of the national leaders in its field, with revenues exceeding €90 million today.

The French water treatment industry is witnessing increasing demand driven by environmental regulations, population growth, and the need for sustainable solutions. As public authorities prioritize efficient water management, companies like Sources are poised to capture market share through their innovative approaches and commitment to excellence.

The Rationale Behind the Deal

The partnership with ISALT, along with support from historical financial investors, aligns with the Group's ongoing growth strategy. This collaboration aims to strengthen Sources' territorial presence by consolidating existing regional hubs and opening new agencies. Furthermore, the deal aims to enhance capacity in rapidly growing areas such as industrial wastewater treatment, waste management, co-digestion, BIM development, and the operation of wastewater treatment facilities.

This investment will help Sources address national objectives related to wastewater treatment and the renewal of existing potable water supply systems while pursuing an active external growth strategy, mirroring past acquisitions of recognized companies like Feljas & Masson and Ar-val.

Information About the Investor

ISALT, closely affiliated with the Banque des Territoires, is a significant player recognized for its strength and reliability while also maintaining the involvement of other minority funds. The leadership team, led by Laurent Piccoli and Maxime Amiant, shares a vision of fostering growth in companies that innovate and provide essential services, effectively contributing to sustainable development.

The firm is known for identifying quality investments with the potential for significant growth, especially in the environmental sector. With extensive experience in scaling businesses, ISALT's involvement is expected to catalyze Sources' transition to higher levels in both domestic and European markets.

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This deal could signify a substantial opportunity for Sources Group by unlocking new avenues for expansion. With ISALT's backing, the company is well-positioned to enhance its service offerings and scale its operations effectively. The combination of strategic support from ISALT and longstanding investors could provide the necessary resources to tackle larger projects and diversify into promising market segments.

Furthermore, the ongoing demand for sustainable water management solutions makes Sources' services particularly relevant; thus positioning the Group for long-term growth in a highly competitive environment. The proactive management team, under Patrick Billette's leadership, indicates a strong commitment to harnessing these opportunities for sustained advancement.

However, the success of this deal hinges on the execution of the strategic plans set forth. The presence of experienced investors and the strengthening of the management team will be critical in navigating the challenges associated with market expansion and achieving defined objectives.

Overall, this investment holds considerable promise, and if executed strategically, it could solidify Sources' status as a frontrunner in the French water treatment landscape while fostering innovation and proactive responses to national sustainability goals.

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