Altamir - Registration Document 2016

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FINANCIAL AND LEGAL INFORMATION
1
Presentation and history of the Company
Sector Country Date
of investment
Residual cost
in €m
Fair value
in €m
% of the portfolio
at fair value
France 2010 36.6 73.2 8.4
1) Business description
THOMEurope is a leading jewellery retailer inEurope. TheGroup
was created in 2010 from the merger of two leading French
jewellery retailers, Histoire d’Or and Marc Orian.
Since the 2016 acquisition of the brands Stroili Oro in Italy and
Oro Vivo in Germany, the group now operates in France, Italy,
Germany and Belgium through a network of 1,000 company-
owned stores, primarily located in shopping centres. THOM
Europe operates under the following brands: Histoire d’Or, Marc
Orian, TrésOr, Stroili Oro, Franco Gioielli and Oro Vivo.
2) Why did we invest?
Having been a shareholder of Histoire d’Or for eight years, Apax
had reviewed the opportunity to combineHistoire d’Or andMarc
Orian several times in the past. The investment thesis is now
based on the combined group.
THOMEurope is a leader ina stable, high-marginand fragmented
market, in which scale provides a key competitive advantage.
Its retail concepts, found in prime locations, stand out from the
competition and are supported by best-in-class operations. Its
outstanding, proven and highly-committed management team
has a strong knowledge of both theHistoire d’Or andMarcOrian
groups.
3) How do we intend to create value?
In addition to the synergies generated from the merger, THOM
Europe shows significant growth potential via new openings
in both shopping centres and city centres, development of
e-commerce and international expansion.
4) What has been achieved?
Since investment and the Histoire d’Or/Marc Orian merger,
several developments have created value for the group. A few
dozen stores have been opened in France and Belgium with
particular development in city centres since FY 2013. In 2014,
the group acquired 31 Piery stores andmade several other small
acquisitions. THOMEurope has also internationalised, acquiring
two jewellery chains in Northern Italy, and opening several new
stores in the country. Lastly, an e-commerce site and a digital
marketing/CRM strategy were launched in FY 2013.
In July 2014, the group issued€345m in five-year senior secured
bonds to refinance its existingdebt, finance the acquisitionof the
Piery stores and repay part of shareholders’ convertible bonds,
which allowed Altamir to recoup 40% of its initial cost.
In October 2016, THOM Europe acquired Stroili, the leading
Italian jewellery retail chain (369 stores), and Oro Vivo’s
German subsidiary (38 stores) thereby creatingEurope’s largest
jewellery retailer withmore than 1,000points of sale, over 5,000
employees and pro forma sales of more than €600m.
5) How is it performing?
THOMEurope continues to performwell, increasing same-store
sales, opening new stores and stepping up the pace of its online
sales. For the 2015-16 financial year (FYE 30 September), sales
rose by 4% (€394m) and EBITDA by 7% compared with the
previous year.
The group continued to outperform themarket in the first three
months of the 2016-17 financial year.
Note: on 18 July 2014, THOMEurope issued publicly traded debt
securities. Therefore, only publicly available information can be
disclosed in this report.
The valuation of the investment in THOMEurope grewby €23m
during the 2016 financial year.
6) How will we crystallise value?
THOM Europe has a scale and high margin profile which makes
it an attractive target to large private equity groups as well as
trade buyers.
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REGISTRATION DOCUMENT 1 ALTAMIR 2016