05 January 2024

Citwell x KresK Développement

LBO

Secteur Consulting & Technology Services

Citwell, a consulting firm specializing in operations transformation, restructures its capital with the support of KresK Développement.

Client Citwell

Founded in 2004 as a supply chain and operations consultancy, Citwell Group accelerates the positive transformation of value chains, from purchasing to customer delivery, through optimized flow management. With a dedicated team of 130 APICS, DDI, Bilan Carbone and IMCM (change management) certified consultants based in France (Paris, Lyon, Nantes, Lille) and abroad, the Citwell Group operates mainly in the following sectors: healthcare, chemicals/pharmaceuticals/cosmetics, luxury goods, agri-food, industry, aeronautics/defense and transport/railways. Citwell supports nearly 200 customers, including 10 CAC 40 companies (Air liquide, Airbus Group, Alstom, Carrefour, Essilor, Hermès international, Legrand, LVMH, Michelin, Sanofi). Citwell, a transformation gas pedal.

Contrepartie KresK Développement

Founded in 2014, Kresk Développement is the Family Office of Didier Tabary, former majority shareholder in Laboratoires FILORGA. The company holds consolidated assets in excess of €1.5 billion and aims to double in size by 2030. Kresk Développement's mission is to make lead or co-investments of €5 to €25 million in the capital of unlisted companies to support management in sustainable growth projects. The team also takes positions in investment funds in France and abroad.

Founded in 2004 by Laurent Penard, a former founding member of Argon, and successively joined by Antoine Bernard and Guillaume Allemand in 2009 and 2010, Citwell stands out as a consultancy specializing in operations transformation, with a predominant focus on the supply chain. The firm mainly works with major industrial and retail groups (Airbus, Antargaz, Décathlon, Hermès, LVMH, Fast Retailing, Groupe Auchan, Pierre Fabre, Sanofi) as well as
(UniHA, RESAH, CHU, etc.). Citwell’s missions cover the complete overhaul of its organizational structures: from product design to delivery, also encompassing transversal and complementary issues such as transformation through information systems, new technologies, and corporate social responsibility (CSR). The Group employs over 130 people in five offices, including four in France
(Paris, Lyon, Nantes, Lille) and a newly established office in Boston.

Following a competitive process orchestrated by PAX Corporate Finance, Citwell chose to evolve its shareholder structure by welcoming Kresk Développement in a primary transaction with a minority stake. This move also enables the new key managers to access or increase their shareholding, while the three founders reinvest substantially.

This operation marks the start of a new development phase for the Citwell Group, aimed at maintaining a growth rate of over 20% per annum. This will be made possible by developing historical customer accounts while implementing an external growth strategy with the support of Kresk Développement. The aim is also to accelerate the Group’s international expansion, particularly in the United States, while broadening its offering in operations (purchasing and
technologies (digitization, AI, Big Data) and sustainable development issues (decarbonization, circular supply chain, etc.). Citwell’s international expansion will be steered by Laurent Penard, who will focus on the US market, while Guillaume Allemand will take over as Group President.

With sales set to exceed 21 million euros by 2023, and a key position in the French market, Citwell now aims to establish itself as a long-term leader.

Kresk Développement’s Private Equity team thus confirms its third direct investment of 2023, targeting high-growth, high-potential companies operating in diversified sectors.

Guillaume Allemand, Citwell, Founding Partner and Chairman:
"Kresk Développement was a natural choice. This Family Office of Didier Tabary, former majority shareholder of Laboratoires FILORGA, met our operational expectations and is aligned with our vision and convictions. Didier Tabary entrepreneurial career and the development of his group are examples for us, and we share the same societal and human values. The synergies we'll be able to build will be solid assets in realizing our development projects and consolidating our premium position."

Charles Collin, Kresk Développement, Investment Director:
"We have followed Citwell's development over the years and have been won over by its growth momentum, testifying to the relevance of the group's offering, its positioning as well as the quality of its teams and management. Thanks to its focus on environmental issues and its strong employer brand, we are convinced that Citwell is well equipped to continue to stand out and grow organically. In addition, we will contribute our know-how to support their external growth strategy."

Simon Morin, Pax Corporate Finance, Managing Partner:
"The growth and consolidation dynamics of the sector required Citwell to be able to equip itself with additional resources to attract talent and realize its ambitions for external growth. It was the combination of an ambitious management plan and a shared vision of the internationalization strategy that made the difference and enabled Kresk Développement to win after a hard-fought process. We also ensured that the Group retained significant room for maneuver by negotiating a reasonable debt package."

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