Didier Depreay | Point Chaud

How did this company come about?

Didier Depreay: Everything started in the eighties in Burgundy, France. That’s where the Morizot family launched a business providing frozen baguettes, croissants and chocolate biscuits to (their own) local bakeries. After a brief stint working for Ziegler and at a bank, I came into contact with the Morizots. The founders requested my help in establishing the business in France and so we did. Soon, they also decided to expand into Belgium, again with my assistance. I realised that our country had tremendous potential, though requiring a corresponding amount of work. In 1993 I launched Point Chaud Belgium in Liège, after obtaining the rights for further development of the business here. I was the majority shareholder from the beginning, but – at the request of the French – I continued to combine my Belgian activities with the operations in France for many years. When Point Chaud France faced financial difficulties in 2006, I started focusing exclusively on the Belgian operations to which I had obtained the rights, with the exception of three Burgundy bakeries (Dijon, Colmar, Chalons).

What is the extent of Point Chaud’s presence in Belgium now?

Didier Depreay: We currently boast 48 points of sale, primarily in Wallonia, but also two in Brussels. Production and logistics are located in Liège, near our headquarters. We’ll be adding another three shops in 2019. We are ambitious. Our entire group consists of 400 employees and our turnover is approaching 53 million euros. Every night we supply our partner shops (franchises or independently owned) with products, either readymade or still in need of final processing.

How are the shares currently distributed?

Didier Depreay: My company 2D Conseil accounts for the majority of shares. In 2014 BNP Paribas Fortis’ PE subsidiary joined in to the tune of 31. 7 percent and the Walloon public holding Meusinvest has a 3.6 per cent interest.

Did you intend to expand from the beginning?

Didier Depreay: Yes, it was the intention from the start. I saw right away that there was a large segment of the market just waiting to be conquered. The first two Point Chaud points of sale were in my home town of Liège. We continued to invest everywhere according to a carefully thought-out formula. The idea was to establish our own shops in interesting locations, such as train stations or shopping centres, for example. The initial investments amounted to €450,000 on average.

Why is growth so important?

Didier Depreay: Growth is what every entrepreneur strives for, isn’t it? That passion to progress rules all. You seek out a market and customers and try to develop your business. There’s no greater satisfaction.

Growth requires financial resources. How did you first get started on your great entrepreneurial adventure, and how has it evolved through the years?

Didier Depreay: Probably like many other starters, I first approached my own family. An uncle at a high level in the United Nations believed in me and was willing to supply the necessary start-up capital, money which I repaid later.

To obtain private funding, whatever the amount, you must win your backer’s trust. On which principles is that relationship founded?

Didier Depreay: I have always adhered to two principles religiously. One: all gains must be re-invested in the company. I have never paid out dividends. Two: particularly with larger partners, you must be able to supply a solid business plan, with a thorough investigation of the market.

Is it best for a company to work with different PE partners for different stages of growth?

Didier Depreay: That is how it went for Point Chaud. Between 2007 and 2014, we worked with the Belgian-Luxembourg fund Eurefi. They approached us. It proved a positive experience. From the beginning, the deal was meant to be of limited duration. That is to say, they intended to leave after five years at the most. Not a problem, as their support of that stage of our growth was well-executed and professional. They added value in multiple ways: not just financially, but also legally and organisationally, Eurefi helped us progress. Then it was time to move on, as agreed.

Was finding a new PE partner easy for you? Or is such a quest difficult?

Didier Depreay: BNP Paribas Fortis’ PE subsidiary reached out to us of their own accord. Apparently they are quite good at knowing where support is needed.

How would you describe their added value?

Didier Depreay: First of all, this time the deal is open-ended. No exit term has been specified; they’ll stay as long as they feel comfortable. Additionally, we have agreed that all future deals will be by mutual consent. Their professionalism is comprehensive and characterises every aspect of their business operations: fiscal, legal, financial. Having a partner like BNP Paribas Fortis on board is truly an asset. It reinforces both the image and the credibility of the company. Besides, don’t underestimate to what extent their network and contacts help boost our business too. You could say such a party as BNP Paribas Fortis benefits a company’s legitimacy greatly, in every way.

Do they supervise operations like a benevolent aunt?

Didier Depraey: Of course there are the quarterly meetings, where everything is presented and analysed based on the figures. Other than that, our management has great leeway. I’m even free to choose my own primary bank.

Is private equity a panacea? Or does it also have disadvantages? Can’t private equity be rather expensive, for example?

Didier Depreay: What’s expensive? The due diligence before participating did add up, but even there they were willing to help carry the costs. Other than that I never felt overly pressured, as to profitability for example.

What is your response to the statement that PE investors are looking for the exit as soon as they enter, and only focus on cashing in?

Didier Depreay: That was in fact true of Eurefi, but that was the agreement from the start. Now, with BNP Paribas Fortis, I don’t have that idea at all. The opposite actually. I really feel we’ll be able to achieve some fantastic things together. I should hope so; after all, an entrepreneur’s path is always full of opportunities.

Private Equity/BVA
Author: Karel Cambien