ADVISO PARTNERS is advising AZULIS CAPITAL (backed by BNP PARIBAS DÉVELOPPEMENT and ARKÉA CAPITAL) in its LMBO transaction to acquire a majority shareholding in the FRIO Group alongside the management team, which is reinvesting heavily and strengthening its percentage interest.
Founded in Le Mans in 1993, LA SOMMELIÈRE is a longstanding player in the wine cellar market in France. In 2006, it was acquired from its founder by Richard GUILLOREL, who orchestrated a progressive diversification into cooling appliances for household and professional use then created GROUPE FRIO after buying the company's closest rival, CLIMADIFF, in 2011.
The Group is currently managed by Didier GRYCHTA (Chairman) and Xavier DUBREUIL (CEO), who joined the project in 2018 and 2010, respectively.
Backed by NAXICAP PARTNERS since 2015, the Group, which generated revenues close to €50 million in 2018, designs and distributes cooling appliances, focusing on three key markets: (i) wine cellars, under its LA SOMMELIÈRE, CLIMADIFF, AVINTAGE, VITEMPUS and PROVINTECH brands, with leading positions in France and Europe, (ii) cooling appliances for household and professional use under its FRIGELUX brand.
More recently, it has developed high-potential ranges, such as medical cooling equipment for pharmacies and healthcare facilities, and its INTERFROID SERVICES subsidiary, which offers maintenance and repair contracts for professional customers. Since the acquisition of PROVINTECH in 2017, the FRIO Group has also established itself in the high-end segment of bespoke wine cellars. In addition, the Group markets a range of complementary products (wine accessories and cellars for chocolate, cheese, cigars, etc.) on a smaller scale.
It targets a diversified client base, through the store networks and websites of leading household appliance distributors in France and Europe and via specialist kitchen suppliers.
The Group's business model is based on a "fabless" operating structure which requires little capital. GROUPE FRIO's teams focus on product innovation and design, and the manufacturing operations are subcontracted to fifteen or so carefully chosen European and Asian partners with which the Group has longstanding agreements. The Group manages logistics from its site in Le Mans, through which virtually all of its products are transported.
With the backing of AZULIS CAPITAL, its new majority shareholder, GROUPE FRIO aims to expand further, especially in export markets, which already represent 30% of its revenues, while drawing on its innovation expertise to add new features to its products.
Pierre JOURDAIN, Chairman of AZULIS CAPITAL'S board of directors: "GROUPE FRIO's teams have intelligently positioned the Group as the leading wine cellar supplier in France, while building solid positions in several international markets. We are convinced that the company still harbours excellent growth potential, thanks to its expertise in designing new products and its aim to venture into new regions and market segments. We are very happy that management has chosen us to support them in this new stage of their development, with a wealth of new projects in the pipeline."
Guillaume DARY, Managing Partner at ADVISO PARTNERS: "GROUPE FRIO is one of the great companies that ADVISO PARTNERS supports in the French regions. Our strategic approach, coupled with our closeness to the management team and detailed knowledge of its aims, enabled us to successfully position AZULIS CAPITAL in this fast-moving competitive auction process. With AZULIS CAPITAL on board, the Group can continue to consolidate the market, especially internationally."
