M&A Activity • Jul 3, 2012
M&A Activity
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ParexGroup, Materis' Mortars business, completed a strategic acquisition in China in the façade industry. ParexGroup, one of the global leaders in mortars, acquires the company Suzuka, leading player on the organic textured coatings market. With an industrial site and a laboratory in Shanghai and a commercial network in central and western China, which will complete ParexGroup's one (800 sales outlets in that country), Suzuka's sales rose sharply to € 13 million in 2011 with a high level of profitability.
It's the second external growth operation of Materis this year after the acquisition in May of Elmin, main bauxite supplier of Kerneos, its Aluminates business.
Moreover, Wendel announces the closing of the debt renegociation of Materis on last June 15. Wendel has announced in May the agreement in principle of this renegotiation with a 91% extension rate, marking the end of a process launched in September 2011, 18 months ahead of the first maturities, with the company's pool of 199 lenders.
This agreement consists essentially in the postponing of 2013-15 maturities to 2015-16 and in increasing the Materis's sources of liquidity.
Wendel and its co-investors have injected €25 million of equity to finance Materis' development (external growth and industrial investments). Wendel has also agreed to provide a €25 million interest-bearing liquidity line. This line may be increased to €50 million in 2013 under certain conditions, and would be cancelled and repaid after the sale of one of the company's businesses.
The senior debt of Materis is close to €1.590 billion. With this agreement, €118 million will mature in 2013-2014, €546 million in 2015 and €925 million in 2016. The mezzanine debt, which amounts to €422 million, will mature in December 2016.
Lastly, Wendel and Materis pursue the strategic review of Materis' portfolio, with a view to selling a business in the coming year if the numerous expressions of interest resulted in an attractive offer under favorable financial and industrial terms.
Materis, a world leader in specialty chemicals for building and construction, is organized into four businesses: admixtures, aluminates, mortars and paints. In 2011, Materis realized sales of €2 billion and employed 9,800 people worldwide.
Wendel is one of Europe's leading listed investment firms. The Group invests in France and abroad, in companies that are leaders in their businesses: Bureau Veritas, Legrand, Saint-Gobain, Materis and Stahl. 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 also invests in Van Gansewinkel Groep in the Netherlands, exceet in Germany, and Mecatherm and Parcours in France.
Wendel is listed on Eurolist by Euronext Paris and is included in the Next 20 index.
Standard & Poor's rating: Long term: BB-, negative outlook - Short term: B since October 10, 2011.
Wendel is the founding sponsor of the Centre Pompidou-Metz, which on September 23, 2011, welcomed more than 1.4 million visitors since opening its doors in May 2010. As a result of its commitment for a long time in the field of Culture, Wendel received the title of Major Partner of the French Ministry of Culture on March, 23th 2012.
Christine Anglade-Pirzadeh: +33 (0)1 42 85 63 24 Laurent Marie: +33 (0)1 42 85 91 31 [email protected] [email protected] Christèle Lion: +33 (0)1 42 85 91 27 Olivier Allot: +33 (0)1 42 85 63 73
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