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Charterhouse Capital Partners announces investment in Funecap Groupe

August 03, 2018

Charterhouse Capital Partners LLP (“Charterhouse”), one of the longest established private equity firms operating in Europe, today announces that it is investing in Funecap Groupe (“Funecap” or “the company”), the second largest funerals company in France. Charterhouse is investing alongside Thierry Gisserot and Xavier Thoumieux, the founders and co-CEOs of the business, who are increasing their stake in the company, and the whole of the management team. Financial details of the transaction have not been disclosed.

The company is active in three complementary segments in the funeral sector: funeral services, provided through its network of operated and franchised POS; the management of funeral infrastructure such as crematoriums (Funecap manages around 40 crematoriums under public contracts with an average length of 20 years), funeral homes or parlors; and the sale and management of funeral provision contracts centered around the development of innovative digital solutions.

With revenues today of more than €200m (at a growth rate of 15% to 20% per year) and around €40m of EBITDA, the company, which employs over 1,500 people in 600 branches across France, has seen remarkable organic and inorganic growth since inception in 2010. Funecap has successfully pursued a buy and build strategy alongside an internal development plan, with over 85 add-on acquisitions and nearly as many openings. This has led to a national network of centralised funeral services providers built around a number of local brands and one national brand, Roc-Eclerc, the best-known brand in the French funeral sector. The company is also able to rely on its subsidiary, la Société des Crématoriums de France, which is recognised for the high quality of its infrastructure and services, to develop further its portfolio.

Charterhouse will work closely with Funecap’s management team in order to continue its buy and build strategy and organic growth plan, further developing the company’s market position and consolidating the highly fragmented €2.5 to €3bn French funeral industry, which today encapsulates more than 3,000 operators.

Thierry Gisserot, Founder and Co-CEO of Funecap Group, said:

“Funecap is dedicated to providing families with a full range of services, delivered with the utmost respect. We currently look after over 100,000 families a year, and our partnership with Charterhouse will see us strengthen and increase our network and the range of services we provide them with, as Funecap continues to grow.”

Xavier Thoumieux, Founder and Co-CEO of Funecap Group, added:

“Our ambition is to continue to consolidate the funeral sector to better serve our clients and build on our reputation for quality, both in terms of our infrastructure and teams, who are renowned for their dedication and work on behalf of families. We believe that our new shareholding structure will enable us to accelerate the development of the company and give it the necessary funding to engage in an ambitious investment program.”

Stephan Morgan, Partner at Charterhouse, said:

“We are delighted to be backing Funecap and its founders, who we have known for years from previous work together, in this transaction. The company has already built a leading position by bringing together a number of well-known and highly regarded funeral companies. We look forward to working again with Thierry Gisserot, Xavier Thoumieux and their management team to actively take Funecap’s impressive growth to the next level.”