The PGS (Palettes Gestion Services) Group, the French market leader in the wooden pallet sector, has raised €10 million to finance its growth and rapid international development.
In the wake of launching PGS Middle East, the Group’s new subsidiary and production site in the United Arab Emirates, the market leader in the French wooden pallet sector acknowledges it has raised €10 million in capital in two successive stages to finance its growth and strong international development.
A Two Stage Financial Operation
The first operation, representing a total of €4.92 million, enabled the two founding managers of PGS Group – Jean-Louis Louvel, the President, and Michaël Modugno, the Vice-President – to increase their equity in the company by €3 million and also open up €1.92 million in company equity to the company’s managers. The second fundraising operation, representing a total of €5 million, was concluded on 13 March 2014 by Bpifrance, notably through the “Fonds Bois” (the bank’s Wood Fund), and NCI, a major regional investment fund in Normandy.
“For this first equity financing operation, we are delighted to have been able to involve the Group’s management, the NCI regional investment fund and Bpifrance, notably through the French Wood Fund, which specialises in our sector of activity,” stated Louvel. “The mission of Bpifrance is ‘to serve the future’ and this will certainly be the case with the PGS Group through our strong international development strategy. Our objective is to achieve a consolidated turnover of €500 million within 5 years. Despite opening up the capital to outside investors, Louvel intends to maintain a large majority and total control of the company with his partner Michaël Modugno.
Vanessa Giraud, the Investment Director of the Sectoral Fund (Fond Bois) said “We are delighted to be a shareholder and pleased that the “Fonds Bois” will contribute to creating a market leader in the wood sector. PGS has managed to position itself in a sector made up of relatively small companies which are mainly family owned.”
“As a professional investor serving regional economic development in Normandy, we are pleased to be able to support this local SME, which is a major player in the logistics sector. We were won over by the commitment of the teams and by Jean-Louis Louvel’s clear strategic vision, which has combined organic growth, acquisitions, international development and innovation since the company’s inception. By participating in this increase in capital and by bringing in NCI and BPI, the directors of PGS clearly underline their faith in the company’s ability to implement an ambitious project,” says Anne-Cécile Guitton, Associate Director of NCI.