07 April 2022

Frafito x iXO Private Equity

LBO

Secteur Health

Frafito, the expert in the distribution of diagnostic medical devices, is reorganising its capital and welcoming iXO Private Equity to support its development.

Client Frafito

Fondée en 1986 par Sélim & Graziella Fiani, Frafito est aujourd’hui dirigée par leur fils Elie qui en a pris les rênes en 2011. L’entreprise familiale a connu ces dernières années une accélération de sa croissance, grâce à la diversification de son offre, la recherche et la négociation d’exclusivités sur des produits phares ou marques à forte renommée, comme Omron, Edan, Braun, Hill-Rom ou encore plus récemment Philips. Entre 2011 et 2021, Frafito a ainsi multiplié par 6 son chiffre d’affaires qui s’élève désormais à 13 millions d’euros. Fort de son efficacité opérationnelle, logistique et commerciale, et d’un service après-vente performant, Frafito est aujourd’hui l’un des 3 acteurs clefs dans le domaine de l’importation/distribution BtoB de dispositifs médicaux.

Contrepartie iXO Private Equity

Founded in 2003, iXO Private Equity is the leading regional player in independent private equity in France. With more than €750m in assets under management, the management company focuses mainly on expansion and buyout capital. It invests between €2m and €30m per project in companies in the south of France. Firmly rooted at the heart of these regions, its stable team is made up of 20 people, including 14 professional investors with complementary experience, including 4 Managing Partners dedicated to the regions covered by iXO Private Equity: Olivier Athanase (Nouvelle Aquitaine), Nicolas Charleux (Provence-Alpes-Côte-d'Azur), Jean-Luc Rivière (Occitanie) and Alexandre Sagon (Auvergne-Rhône-Alpes). www.ixope.fr

Frafito, a company specialising in the import and distribution of major international brands of medical devices, has teamed up with iXO Private Equity, a leading regional private equity firm. Orchestrated by the teams at Pax Corporate Finance, the deal is supported by financing arranged by Société Générale and Arkéa Banque Entreprises.

This LBO will enable Frafito to accelerate its development, in particular through a strategy of external growth, in order to strengthen its leading position in its market in France and internationally.

Based in the Nice region, Frafito supports healthcare professionals on a daily basis by offering innovative, reliable medical devices with an international reputation. The company distributes over 1,500 products in 9 different product ranges, with a particular focus on diagnostics (blood pressure monitors, thermometers, vital signs monitors, etc.). Positioned exclusively on a B2B basis, Frafito has more than 2,000 customers throughout France, including traditional and pure player web-based medical equipment retailers and pharmaceutical wholesale distributors.

Founded in 1986 by Sélim & Graziella Fiani, Frafito is now run by their son Elie, who took over the reins in 2011. In recent years, the family business has seen its growth accelerate, thanks to the diversification of its product range and the search for and negotiation of exclusive deals on flagship products and well-known brands such as Omron, Edan, Braun, Hill-Rom and, more recently, Philips. Between 2011 and 2021, Frafito will have increased its sales by a factor of 6 to €13 million. Thanks to its operational, logistical and commercial efficiency, and its high-performance after-sales service, Frafito is now one of the 3 key players in the BtoB import/distribution of medical devices.

Frafito now intends to enter a new phase in its history. In addition to financing its organic development and structuring (strengthening its sales teams and support functions), this transaction will also give Frafito the opportunity to carry out an external growth plan aimed at conquering new markets. In a fragmented but rapidly consolidating sector, the company wants to be able to seize targeted acquisition opportunities that will enable it to expand its customer base and gain access to new products. It is in this context that iXO Private Equity is acquiring a stake in Frafito.

Elie Fiani, Chairman of Frafito, said: "The proximity of iXO Private Equity's teams and their ability to work closely with companies to support their growth plans will be a valuable asset for us. We are therefore delighted to welcome our new investor on board and thank him for the confidence he has shown in us today.

Violaine Mahier, Investment Director at iXO Private Equity, concludes: "We are delighted to be associated with Frafito, a family business run by a talented young entrepreneur who has demonstrated his ability to make the right strategic choices and drive growth. This investment is a perfect illustration of our philosophy of supporting fast-growing regional champions, with whom we can plan long-term development strategies to enable them to establish themselves in their markets.

Anthony Ginieis, Partner at Pax Corporate Finance, comments: "After several months of discussion with Frafito's management regarding the company's strategic development, we came to the conclusion that a tie-up with a financial partner was the best option. Ixo Private Equity, with its philosophy, its regional roots and its ability to support Frafito in its future projects, appeared to be the ideal partner for this operation. The aim now is to create a national player that is a leader in its market".