M&A Activity • Apr 1, 2014
M&A Activity
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CUSTOM SOLUTIONS (ISIN: FR0010889386 - Ticker: ALSOL), French key player in Operational Marketing Solutions in Europe, announces today the acquisition of a majority stake in the capital of the Finnish Company « Lojaali », based in Helsinki; as well as its Swedish subsidiary "Loyaltic" based in Stockholm.
Custom Solutions announces the acquisition of a 55% stake in the company "Lojaali", company under Finnish law, and "Loyaltic", its subsidiary in Sweden, alongside its leader and three other historic founders. Lojaali is a digital marketing agency specialized in "recruitment and retention" promotional marketing operations by top brands. It has developed since 2006 a real know-how in the production of Web to Store digital campaigns to, thanks to its innovative mobile web solutions marketed in Finland and Sweden for a year.
This stake, achieved mainly through a capital increase of € 226K, will give the company the means to accelerate its business development in all Nordic countries: Finland, Sweden but also Denmark and Norway.
"LOJAALI" doubled its turnover in three years to nearly reach € 900K in 2013 with a balanced result. Its team, which counts with a dozen employees, has developed and secured the loyalty of international renowned clients such as Microsoft, Coca-Cola, Lenovo, Nissan as well as local brands, leader in their market as Lambi (paper) or Vassan (breads).
In accordance with the strategy announced in the framework of its "RIO 2016" project, Custom Solutions continues its acquisitions in operational marketing strengthening its expertise in digital while expanding its European coverage across the Nordic countries.
The company "LOJAALI" has a recognized expertise on the market of digital promotional offers by top brands in Sweden and Finland. It will enable the Group to strengthen its expertise in developing mobile websites (Responsive Design).
The two companies will establish a steering committee to develop business synergies. This acquisition will enable the Group to strengthen its offer in the management of European offers by teaming up with a local partner for the treatment of consumer relationship. The Group will also be able to provide an adapted answer to its major European customer accounts.
"LOJAALI" has experienced strong growth in sales over the past two years and now has the financial resources to accelerate growth in all Nordic countries to take a strong leadership position in the market of promotional offers in this area. Its rapid growth should enable it to make profits by 2015. Custom Solutions should acquire 100% of the company "LOJAALI" by the end of 2017.
Cedric Reny, CEO of CUSTOM SOLUTIONS comments: « I am particularly pleased with this acquisition and delighted by this new association with its leader Robert Olkinuora and his associates. It reinforces the group in Europe in an area with high purchasing power and relatively little competition. The financial resources of the Group associated with its know-how and the high ambitions of the management team are real assets for Lojaali's growth on its traditional markets but also in all the Nordic countries. Moreover, this structure will allow the Group to improve its offer in Northern Europe even as we meet brakes in the treatment of the offers in this area because of language barriers and geographical distance. Finally, their expertise in digital should allow us to improve our service on our markets. "
Robert Olkinuora CEO and partner of Lojaali comments: "I am very pleased about this merger, since it makes our company stronger and gives us the possibility to expand our business on the Nordic markets. The company has offices in Finland and Sweden, with plans to open new offices in Denmark and Norway as well before the end of next year, in order to serve big brands in the Nordic countries. We share the same philosophy with Custom Solutions about smart and effective marketing solutions and customer centricity. We are very excited about the partnership and look forward to growing together with the rest of the Custom Solutions Group. »
Sales Turnover - First Half, 2014
(After the market close)
Founded in 1997, Custom Solutions is a major player in Operational Marketing Solutions.
The company supports its customers in developing their sales, acquisition and retention of their consumers and motivating their sales networks in designing and deploying innovative and effective marketing offers from the most classic to the most personalized, throughout France and Europe.
Thanks to its global offer, its capacity of recognized innovation and in its 16 years of expertise, Custom Solutions built himself a robust fame with 300 prestigious customers, among which Danone, Nestlé, Ferrero, Procter and Gamble, Sony, LG, Warner Bros, Orange, Free, Renault or Total.
The Company announced in 2013 its strategic plan to 3 years, RIO 2016 whose goal is to make Custom Solutions a major European player in operational marketing. The project is structured around three axes:
Over the last 5 years, Custom Solutions multiplied by 2 its sales turnover to reach € 18m for the year ended September 30, 2013.
Lojaali is a finish interactive agency that helps brands develop smart and effective promotions and loyalty programs.
Lojaali's business is to help companies increase their sales, by identifying, activating, and retaining their best customers. It is executed by providing digital promotions, sales activation, and loyalty programs. Lojaali's offering is a combination of marketing technology and services consisting of the promotional mechanics, digital execution, hosting and managing the campaign and reporting the results. The solutions can be used as stand-alone sales boosting systems or combined with a bigger campaign or program. The clientele consists of large national and multinational brands that want the best possible solution available.Our main customers are: Vaasan (bread producers), Mesta Group (Tissue papers), Nestlé, Coca-Cola and Lenovo.
The company, that has a staff of 10, was founded in Helsinki in 2006 and has experienced a steady growth since then. The Swedish office was opened in Stockholm in 2013. The turnover in 2013 was approximately 900K€ and should grow and be over 1M€ for 2014.
www.customsolutions.fr/en
CUSTOM SOLUTIONS - capital of € 4 863 050 - RCS (SIRET): Aix en Provence 500 517 776 (00042) - VAT FR 33 500 517 776- APE 7311 Z ZI Rousset, 135 Avenue Victoire, 13790 Rousset (France)- Phone: +33 (0)4 86 91 42 00 - Fax: +33 (0)4 86 91 42 30 - e-mail: [email protected]
Listed on Euronext's Alternext Paris ISIN : FR0010889386 – Mnemonic : ALSOL Eligible to PEA-PME
Cédric Reny
Chief Executive Officer
David Lebec
Administrative and Financial Director
Phone : +33 (0)4 86 91 41 43
GILBERT DUPONT
Jérôme Guyot
Listing Sponsor
Phone : +33 (0)1 40 22 45 87
CUSTOM SOLUTIONS - capital of € 4 863 050 - RCS (SIRET): Aix en Provence 500 517 776 (00042) - VAT FR 33 500 517 776- APE 7311 Z ZI Rousset, 135 Avenue Victoire, 13790 Rousset (France)- Phone: +33 (0)4 86 91 42 00 - Fax: +33 (0)4 86 91 42 30 - e-mail: [email protected]
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