The Carlyle Group Submits Bid for 65% of Giannoni

Paris – Global private equity firm The Carlyle Group today announces that it has submitted a fully financed firm bid to Mssrs. Rocco Giannoni and Joseph Le Mer for the acquisition of Giannoni France, the Brittany-based manufacturer of stainless steel heat exchangers for condensing boilers in commercial and residential premises across Europe and North America. This offer has been made in association with Joseph Le Mer, who will retain a 35% stake in the group and remain as CEO. This offer will soon be presented to Giannoni France’s Workers Council. Through this partnership, M. Joseph Le Mer and The Carlyle Group are committed to support Giannoni France in developing innovative energy-efficient products while growing its international presence outside Europe.

Established in 1993 by founders Joseph Le Mer and Rocco Giannoni, Giannoni France sells its innovative heat exchangers to the major gas boiler manufacturers in Europe and the United States. The company plays a key role in developing energy efficient heating systems, with a strong focus on sustainability. Gianonni’s products facilitate substantially reduced energy consumption, costs and greenhouse gas emissions. The company’s growth relies on its well capitalized manufacturing plants based in Morlaix and Lannion, Brittany. Due to the ongoing success of its internal research and development department, Gianonni has introduced new products and registered several patents in 2010.

Benoît Colas, Managing Director at The Carlyle Group, commented, “Gianonni has demonstrated unparalleled technological innovation and a fundamental commitment to sustainability, safety and reliability. We are confident in the continued high growth potential of the company due to opportunities in growing markets, such as Eastern Europe and Russia, and new product developments. Under the excellent leadership of Joseph Le Mer and Rocco Giannoni, the company has developed an outstanding reputation for top quality products and we look forward to supporting Gianonni through its next phase of development and expansion.”

Joseph Le Mer, Chief Executive Officer of Giannoni, said, “We are exceptionally proud of Gianonni’s achievements over the past 17 years and believe Carlyle's institutional support will facilitate our plans for expansion and further enhance the world class products we manufacture. Gianonni has diversified and evolved to become a leading player in this particularly specialised market. We are delighted to have found in Carlyle an investor, whose global resources and sector expertise will help propel us forward as we continue to grow and consolidate our position as the leading manufacturer in this niche.”

Equity for this investment will come from Carlyle Europe Partners III, a €5.4bn fund that closed in July 2007.

# # #