NextStage AM Buys Majority Stake in SEMA for €30M

NextStage AM has injected €30 million into Societe des Eaux Minerales d Arcachon (SEMA), securing a controlling interest in the historic French mineral water producer. This significant capital infusion is earmarked to propel SEMA into a new phase of commercial expansion and industrial enhancement, targeting ambitious growth objectives.

The investment, channeled through NextStage's Evergreen vehicles and the FPCI Pepites et Territoires fund (backed by AXA and NextStage AM), represents a strategic leveraged buyout. SEMA, a company with over a century of heritage, operates two distinct natural mineral water sources in the Arcachon region of France. The renowned Abatilles brand originates from the Sainte Anne Source, a deep well drawing water from 472 meters, while the Source des Pins brand is sourced from a 330-meter depth.

This move by NextStage AM signals a strong belief in the premiumization potential of French regional water brands within a competitive beverage market. The French bottled water sector, valued at over €2 billion annually, is experiencing steady growth driven by consumer demand for natural, healthy, and origin-certified products. SEMA's established presence, particularly Abatilles' reputation among restaurateurs in Southwestern France, provides a solid foundation for broader national penetration.

The core strategy behind this acquisition centers on amplifying the market presence of both the Abatilles and Source des Pins brands. SEMA aims to significantly broaden its distribution network across the entire French market, with a clear objective to double its current revenue within the next five years. This expansion will likely involve enhanced marketing efforts and potentially increased production capacity to meet projected demand.

SEMA, which currently employs around 50 individuals, reported revenues exceeding €20 million in the most recent reporting period, with an annual output surpassing 50 million bottles. The company was previously under the ownership of Jean Merlaut and Herve Maudet since 2013, who have overseen its operations and brand development prior to this transaction. The involvement of AXA as a funder underscores the perceived stability and growth prospects of the French beverage industry.

This transaction highlights a trend of private equity firms seeking established consumer brands with strong regional identities and clear avenues for national scaling. The €30 million investment is expected to facilitate upgrades to SEMA's industrial infrastructure and bolster its commercial teams, enabling it to compete more effectively against larger, more established players in the French mineral water market. The deal was facilitated by advisory services from Largilliere Finance, who represented SEMA's shareholders and management.