A financial investor is set to buy a majority stake in Sernam, the ex-SNCF subsidiary and one ofFrance’s largest express parcel companies. Paris-based Butler Capital Partners and Sernam are in
exclusive negotiations over the acquisition of a majority holding by the private equity company inthe French operator. The transaction is expected to be finalised by the end of the year.Sernam, with 2,100 employees, is one of the ten largest French express and parcels operatorswith revenues of €369 million in 2005. It operates a network of 55 regional bases. In 2004, it hada market share of about 4.5%, according to CEP-Research information.
The French national rail operator SNCF sold the loss-making express parcels subsidiary to thecompany’s management led by managing director Philippe Chevalier in October 2005 after failing toattract any other bidders. At the time, SNCF said the management takeover would enable the expressparcels firm to continue its business activities and safeguard jobs. Sernam would continue totransport parcels on SNCF’s night-time express trains on a non-exclusive basis.
Sernam said in a statement that following its successful restructuring after the managementbuyout, its shareholders had decided to seek a new capital investor to support the company’sdevelopment. The planned acquisition would be conducted as a capital increase and the currentmanagement would retain a significant holding in the company.
Sernam said its management team was determined to speed up the company’s growth based onquality customer services and its competitive advantages such as express transportation byhigh-speed train.
Butler Capital Partners has invested in a diverse range of French companies over the last 15years, including in the freight transport group Giraud International and the SNCM shipping company.
