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The Salins du Midi Group is the 3rd largest salt producer in Europe with presence in France and Africa. Owned until 2000 by the American group Morton Salt, Salins underwent an initial LBO. At the end of an initial successful process, the management wished to reorganise its shareholding and continue to develop the group through organic growth as well as acquisitions. It chose a consortium led by Chequers in association with other investors.
Salins operates on a relatively stable market with significant barriers to entry, linked in particular to high logistical costs due to the price of salt per tonne. A considerable part of Salins’ profitability is linked to road-gritting salt, the volumes of which vary markedly from one season to another. The leverage used in the transaction was calibrated to deal with one or two years of low snowfall.
The plan presented by the management team was to continue developing the group in the wake of the previous operation: improving productivity, winning new markets and external growth.
Value creation
After a difficul initial period linked to lower snowfall than anticipated, the group returned to growth and profitability, generating significant cash flow that enabled it to be virtually debt-free. Salins was taken over in 2014 by its chairman Hubert François, with the help of his family group.2004
€200-300m
MBO
Asset light Industrials
France