PAI Partners is expected to start exploring options for StellaGroup, a France-based window manufacturer, towards the latter half of next year, according to two sources familiar with the situation.

The company, which also produces shutters, curtains, gates and doors is already working with advisors, one source added.

It registered EUR 120m EBITDA in 2023 and could be valued at least EUR 1.6bn, the second source said.

StellaGroup posted EUR 642m in pro forma revenues in 2023, according to an official document. Half of its revenues come from outside of the French market, as per the company’s official website.

PAI Partners acquired a majority stake in StellaGroup in 2018 in a deal that would have valued the company at around EUR 600m, as reported. It bought 61% of the company while seller ICG and the management remained as minority shareholders, as per an official press release.

PAI owns the asset via the 2018-vintage PAI Europe VII, which has one realisation with the sale of Asmodee to Embracer Group. From the same vintage, a sale of Apleona had earlier stumbled on price expectations.

In 2021, StellaGroup was reported as a potential 2022 sale candidate by this news service.

StellaGroup, which is based in Epagny Metz-Tessy, near Annecy, operates in France, Germany, Italy, the Netherlands and the UK and has around 2,500 employees, according to the same official document.

In 2023, StellaGroup acquired Italy-based pergola and shutters manufacturer Pratic F.lli Orioli, which registered EUR 80m in revenues in 2022, according to an official press release.

PAI Partners, which invested in StellaGroup via its EUR 5.1bn fund PAI Europe VII, is prepping a new vehicle dedicated to the mid-market, PAI MMF II, in a move that reflects a wider trend in the sponsor universe of large and upper-mid-market GPs moving down deal sizes, as reported.

PAI Partners declined to comment. StellaGroup and ICG did not reply to requests for comment.