Eurazeo is carrying out a dividend recapitalization of French life insurance broker Groupe Premium after canceling the sale of the company earlier this year, sources told Reorg.
The private equity firm
pulled the sale after failing to receive bids reaching its targeted valuation multiple of 15x. Groupe Premium’s projected EBITDA in 2023 is €100 million, while it reported €75 million in 2022.
Groupe Premium’s leverage levels are at about 3x, giving Eurazeo room to be able to recapitalize its portfolio company and pay dividends to reward equity investors, sources said.
The company’s existing debt amounts to about €250 million and the new package is expected to be about €400 million, sources said. Barings is the incumbent lender and it is expected that it will club with other lenders, the sources added.
Groupe Premium has grown substantially since Eurazeo
acquired a majority stake in the company for about €290 million in 2021. At the time, Eurazeo invested about €100 million in Groupe Premium, while Montefiore Investment and the company’s management re-invested.
Its turnover has increased 80% year over year to €188 million in 2022, according to its
website.
Founded in 2000, Groupe Premium is an independent broker for life insurance and retirement savings solutions and offers wealth management consulting.
The company has its headquarters in Paris and employs more than 1,000 people.
Eurazeo declined to comment.
-- Lucía Camblor, Nick Krause