Canadian institutional investors CDPQ and PSP investment sign an agreement with management and Ardian to acquire significant minority stakes in industrial engineering group fives

Founded in 1812, Fives has participated in the modernization of various global industries, including steel, aluminium, cement, energy, and more recently, the automotive and aerospace industries, as well as logistics. The group’s rich history is grounded in constant innovation, development of proprietary technologies, international expansion and a pioneering spirit. This enables Fives to have a comprehensive global vision of the various industries in which it operates, as well as strong expertise in the design of critical equipment and solutions for industrial processes. 

Today, Fives is at the forefront of innovation, taking a leading role in the “Industry of the Future” with a unique focus and expertise in digitalisation, automation and robotics to optimize industrial processes. With a network spanning four continents, the group possesses a balanced global footprint. For the year ending December 2017, the group is expected to generate over EUR1.8 billion (CAD$2.7 billion) in sales, across North America (30%), Europe (30%), Asia (22%) and the Middle-East and Africa (18%).

This transaction offers CDPQ and PSP Investments the opportunity to become important partners, contributing to the continued development of Fives’ solutions, designed to improve the overall performance of industrial plants, including the optimisation of the energy and resource efficiency and environmental footprint. The partnership with CDPQ and PSP Investments will provide Fives with the necessary resources to finance its mid- and long-term expansion plans through major growth avenues, particularly in markets like Intralogistics, as well as leverage its recently developed breakthrough technologies.

Frédéric Sanchez, Chief Executive Officer of Fives Group, said: “In the past years, with the full support of Ardian, we have invested heavily in R&D and business development, both in terms of portfolio products and geographical reach - reinforcing our leadership in our core markets and expanding our offer in adjacent booming segments such as FAW (Fully Automated Warehouse), as well as establishing AddUp, a promising platform with Michelin in metal 3D printing (additive manufacturing). Today, we are very enthusiastic to enter a new phase of our development with CDPQ and PSP Investments. Their long-term approach to investment, their deep valuable industrial insights and their strategic vision aligned with that of the management team make them ideal partners for the group, allowing Fives to take advantage, at a global scale, of the full potential of our diversified operations.” 

"For over 200 years, Fives’ technology has changed the way the industrial world operates", said Stephane Etroy, Executive Vice-President and Head of Private Equity at CDPQ. "We are impressed by the company's ability to continuously adapt, innovate and expand worldwide within the context of rapidly changing technological landscapes. Alongside Frederic Sanchez, his management team, and our partner PSP Investments, we look forward to contributing to the industrial advancement and improved resource efficiency through Fives.” 

“We are excited to team up with Fives’ talented management team, led by Frédéric Sanchez, a true visionary in this sector, alongside our partners at CDPQ and Ardian,” said Simon Marc, Managing Director and Head of Private Equity at PSP Investments. “The transaction is a great example of partnership with successful entrepreneurs and like-minded, long-term investors. Fives has been at the forefront of innovation since its inception and we are looking forward to supporting its growth in the next industrial revolution.”

"Fives is an excellent company with a rich, unparalleled heritage,” added Dominique Gaillard, CEO of Ardian France and head of Ardian Direct Funds. “As a business, it continues to go from strength to strength and its focus on industry-leading innovation, combined with its pioneering spirit, positions it well for the years to come. We have achieved great things with Fives since we first invested. CDPQ and PSP Investments are ideal partners and, alongside Ardian, will contribute significantly to its continued development." 

The completion of the transaction remains subject to approval by relevant regulatory authorities.