Wendel grants exclusivity to Unigrains for sale of Mecatherm
for €120 million
Paris, July 31, 2018 - Wendel announced today that it has received a firm offer from Unigrains to acquire all the capital of Mecatherm, the world leader in industrial bakery equipment, for an enterprise value of €120 million, or about 10 times expected EBITDA for year-end 2018. Wendel subsequently entered into exclusive negotiations with Unigrains to finalize the transaction, which should close in the fourth quarter of 2018, subject to obtaining the necessary regulatory and legal authorizations.
Based on this offer, Wendel would receive net proceeds of around €83 million, or about €40 million above Mecatherm's valuation in Wendel's net asset value at May 2, 2018.
With Wendel's guidance and the support of a very talented, newly formed management team trained alongside its Chairman Olivier Sergent, Mecatherm has carried out extensive industrial reorganization, and successfully positioned itself in new, high growth segments ("Soft & Pastry & Premium breads"), while strengthening its traditional segment ("Crusty bread") where Mecatherm is the world leader. This reorganization was international in scope, particularly in emerging countries, thanks to an expanded sales team and a local presence in North America, Latin America and Asia.
Unigrains, an investment company controlled by French grain growers, specializes in agri-food and agribusiness, and has been supporting companies for more than 55 years. Unigrains currently manages €1 billion in assets and is a partner to nearly 150 companies. It sees the Mecatherm acquisition as an opportunity to develop exceptional know-how in the industrial breadmaking equipment sector while making its recognized expertise and international network available to Mecatherm and its management team.
André François-Poncet, Wendel Group CEO, said: "Mecatherm's management has made significant efforts over the past several years to transform its industrial and commercial organization to pave the way for new commercial successes. I am convinced that Mecatherm will find a new partner in Unigrains, an expert in the agri-food industry, that will allow it to successfully continue its growth. This transaction is also a further sign of our strategic commitment to simplifying Wendel's portfolio by focusing on assets of larger size within a narrower portfolio."
Philippe Pinta, Chairman of Unigrains, said: "We have worked for the last 55 years to strengthen the ties between agriculture and agri-food. The Mecatherm acquisition represents a new strategic focus that will complement our role as equity investor and offer a singular vision for growth in bakery and pastry products, a major asset of our partner companies. We are very excited to advance the excellence of the entire French cereals segment and its international reach in this way, as well as ensuring the continuity of a French leader in a very vibrant global market.
Olivier Sergent, Mecatherm's Chairman and CEO said: "We thank Wendel for their constant support throughout these last seven years, which allowed us to build a stronger group that is better positioned in its market segments. Along with the entire management team, we are pleased to have the support of a prestigious French investor, who will provide us with its unique expertise in the cereals industry over the long term and in keeping with what we have achieved with Wendel.
DC Advisory and Gaillard Partners assisted Wendel with this transaction.
Agenda
09.06.2018
H1 results 2018 / Publication of NAV (pre-market release)
By conference call
11.29.2018
Investor Day 2018 / Publication of NAV and trading update (pre-market release).
About Wendel
Wendel is one of Europe's leading listed investment firms. The Group invests in Europe, North America and Africa in companies that are leaders in their field, such as Bureau
Veritas, Saint-Gobain, Cromology, Stahl, IHS, Constantia Flexibles and Allied Universal. Wendel plays an active role as industry shareholder in these companies. It implements long-term development strategies, which involve boosting growth and margins of companies so as to enhance their leading market positions. Through Oranje-Nassau Développement, which brings together opportunities for investment in growth, diversification and innovation, Wendel is also a shareholder of Mecatherm in France, Nippon Oil Pump in Japan, PlaYce and Tsebo in Africa, and CSP Technologies in the United States.
Wendel is listed on Eurolist by Euronext Paris.
Standard & Poor's ratings: Long-term: BBB-, stable outlook - Short-term: A-3 since July 7, 2014. Wendel is the Founding Sponsor of Centre Pompidou-Metz. In recognition of its long-term patronage of the arts, Wendel received the distinction of "Grand Mécène de la Culture" in 2012.
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