Summary of the acquisition
Alimak Group has entered into an agreement to acquire Tractel, a world leading height safety specialist providing reliable, innovative, and cost-effective working-at-height solutions and services for a consideration of MEUR 500, corresponding to approximatelySEK 5.3 billion , on a cash and debt free basis (Enterprise Value). The purchase price corresponds to an EV/EBITDA multiple[1]of 10.3x based on Tractel's EBITDA during the period of 12 months ending on30 June 2022. -
Tractel has a diversified and global customer base and owns manufacturing sites on three continents. Its revenue during the period of 12 months ending on
30 June 2022 increased by 7% and amounted to MEUR 201, corresponding to approximately MSEK 2,093, with an EBITDA margin[2] of 24%. -
The acquisition offers significant commercial synergies and growth opportunities, including a significantly wider customer base, an expanded product portfolio and a strengthened global service organization, with growth prospects
in Construction , Facade Access as well as in the Wind division. Accelerated growth is expected in all the mentioned areas, globally. -
The combination of
Alimak Group and Tractel had an annual revenue exceedingSEK 6.0 billion , during the period of 12 months ending on30 June 2022 , with an EBITA margin[3] of 17%, excluding synergies.[4] -
The acquisition will significantly increase
Alimak Group's EBITA margin and operating cash flow immediately post completion and is expected to be EPS accretive from the full year 2024 (excluding non-cash amortization impacts and after the Rights Issue). - With full effect 2026, the total expected annual cash flow potential from commercial and cost synergies amounts to approximately MSEK 150, of which approximately MSEK 80 are estimated to be realized by 2024. The total expected annual cash flow potential from cost synergies amounts to approximately MSEK 70, of which approximately MSEK 40 are estimated to be realized by 2024.
-
To finance the acquisition,
Svenska Handelsbanken is providing a long-term facility of MEUR 300 and a bridge loan facility. Post-closing of the transaction, the bridge loan facility is intended to be repaid with proceeds from a new share issue with pre-emptive rights forAlimak Group's shareholders. -
The transaction is subject to customary competition authority approvals as well as the shareholders of
Alimak Group authorizing the Board of the company to resolve on the Rights Issue. The transaction is expected to close in the second half of 2022 andAlimak Group aims to carry out the Rights Issue during Q4 2022 and/or Q1 2023.
"This transformational acquisition underlines Alimak Group´s profitable growth strategy and ambition to expand our global market presence. We have followed Tractel for a long period and know that it is a growing and highly profitable quality company that shares our values. The combination offers significant commercial synergies and growth opportunities, including a substantially wider customer base, an expanded product portfolio and a strengthened global service organization. We are convinced that this transformational acquisition will create significant shareholder value over time via higher revenue growth and improved profitability", says Ole Kristian Jødahl, CEO
"The combination of
Financing and financial impacts
The acquisition is financed through a long-term facility of MEUR 300 and a bridge loan facility from
Post completion of the transaction and the Rights Issue, the Net Debt[5]EBITDA ratio will increase to 2.9x and temporarily exceed the long-term financial target.
Acquisition-related costs, including transaction, financing, integration and restructuring costs, will amount to approximately MSEK 55, expected to be recognized in 2022 and in 2023. The transaction costs will be accounted for and presented as items affecting comparability.
Tractel will from the start continue to operate under its existing brands and be reported as a new division within the
Support from
Tractel at a glance
Tractel is a world leading height safety specialist, providing reliable, innovative, and cost-effective working-at-height solutions and services. The company has highly recognized quality solutions and brands in combination with a well-established reputation and track record in the market segments in which it operates. Tractel is globally recognized and respected in a range of applications and industries, in particular in industrial, construction, energy, telecoms and infrastructure projects. Tractel brands are built on excellence in engineering and manufacturing, and have a reputation for quality, reliability, and safety. The solutions portfolio comprises height safety protective equipment, load measurement & control, lifting & handling, temporary & permanent access hoists and platforms, BMUs (
Tractel has subsidiaries in 19 countries, 1,100 employees, customers in 120 countries and over 10,000 distributors globally. Its manufacturing sites are located in
For more information, please visit www.tractel.com
Tractel has a diversified and global customer base and own manufacturing sites on three continents. Revenue last twelve months, per end of June, increased by 7% and amounted to MEUR 201, corresponding to approximately MSEK 2,093, with an EBITDA-margin of 24%.
The combination of
- For
Alimak Group , Tractel is a strong strategic fit. -
The acquisition adds a new vertical into
Alimak Group , Height Safety & Productivity Tools, which provides significant synergies for cross selling of solutions, adds a lot of new customers, and opens new segments, and contributes with a vast global network of distributors. The end customers of these products are found both within construction as well as basically all industrial segments. -
The acquisition strengthens the solution portfolio
in Construction . Tractel's temporary access business, including the brand Scanclimber, which is a leading provider of mast climbing work platforms, complementsAlimak Group's wide product range of construction hoists, transport platforms and mast climbing work platforms, serving both construction and rental customers. -
The transaction gives
Alimak Group the opportunity to establish a global market leading position in Facade Access.Alimak Group together with Tractel, will have a complete portfolio of solutions and a global service organization able to help all customers with optimized total cost of ownership, globally. -
The transaction includes attractive growth opportunities in Wind. Tractel's product range and growth initiatives in Wind is a perfect fit with Avanti's portfolio and broadens the scope and opportunities for
Alimak Group . The joint offering will enhance the Group's value proposition to both OEM's and end customers, expanding the portfolio for safe and efficient access and lifting & handling solutions in Wind towers. Alimak Group and Tractel have similar after sales business models based on products that have a long life with need for inspection, service, and re-certification. The combination offers significant potential to increaseAlimak Group's service business, based on the large combined installed base ofAlimak Group and Tractel. The expanded service solutions offering and the vast installed base, enables the company to minimize customers' total cost of ownership, prolong the lifetime of the solutions and to refurbish and if needed replace such solutions, thereby also reducing the climate and environmental footprint.
Strategic review of Wind division closed
With the opportunities identified through the acquisition and the increased demand for renewable energy, the Board of
The EBITA-margin in the Wind division has steadily improved driven by efficiency measures and price management, including the exit of the tower internals business. The acquisition of Tractel clearly expands the commercial opportunities for the Wind division, including the addition of lifting and height safety solutions for the wind turbines, and the provision of an increasing amount of value creative and cost-efficient solutions and services for the OEM's and operators.
- Revenue growth target: 5-7%
The Group's mid-term target is to have an average annual revenue growth of 5-7%.
- EBITA-margin target: 14-16%
The Group's mid-term target is to reach an operating EBITA margin of 14-16%.
- Net Debt/EBITDA target: ~2.0x
The company will maintain an effective capital structure with a net debt of around 2.0x EBITDA over a cycle. The capital structure will be flexible and allow for strategic initiatives.
- Dividend policy: 40-60%
The Group has a target of paying a dividend of 40-60% of its net profit to its shareholders.
- Sustainability target:
Aim to reduce CO2-footprint with 30% cross our value chain by 2025. (Scope 3, normalized based on turn-over, reduction compared to 2019)
Advisors
Telephone conference / Presentation
A telephone conference for investors, analysts and financial media will be held at 09.30 CET on
To participate by phone - please call:
SE: +46 856642651
US: +1 6319131422
Pin: 64490040#
Link to audiocast:
https://tv.streamfabriken.com/press-conference-august-2022
For more information, please contact:
Ole Kristian Jødahl, CEO,
ole.joedahl@alimakgroup.com or
thomas.hendel@alimakgroup.com
This information is information that Alimak
About
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In the
[1] EV/EBITDA multiple is calculated by dividing the consideration amount (enterprise value) by earnings before interest, taxes, depreciation, and amortization (EBITDA).
[2] EBITDA-margin is calculated by dividing EBITDA by revenue.
[3] EBITA margin is calculated by dividing earnings before interest, taxes, and amortization (but including depreciation) by revenue.
[4] Preliminary unaudited pro forma financials with the purpose of describing the hypothetical financial results after
[5] Net Debt is defined as interest-bearing liabilities (excluding shareholder loans) less cash and cash equivalents.
[6] Based on ownership data as per
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