Alimak Group to acquire Tractel for EUR 500mn

Alimak Group to acquire Tractel for EUR 500mn

STOCKHOLM, SWEDEN: Alimak Group AB 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.

The acquisition is transformational, accelerating Alimak Group’s profitable growth strategy, creating a highly profitable global provider of safe and sustainable premium height solutions with an annual revenue of over SEK 6 billion.

The acquisition adds a new vertical into Alimak Group, Height Safety & Productivity Tools, strengthening the solution portfolios within the Construction, Facade Access and Wind division as well as significantly increasing the potential for the service business.

The consideration amounts to EUR 500 million, corresponding to approximately SEK 5.3 billion, on a cash and debt free basis (Enterprise Value).

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 EUR 201 million, corresponding to approximately SEK 2.093 billion with an EBITDA margin 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 exceeding SEK 6.0 billion, during the period of 12 months ending on 30 June 2022, with an EBITA margin of 17%, excluding synergies.

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 SEK 150 million, of which approximately SEK 80 million are estimated to be realized by 2024. The total expected annual cash flow potential from cost synergies amounts to approximately SEK 70 million, of which approximately SEK 40 million are estimated to be realized by 2024.

To finance the acquisition, Svenska Handelsbanken is providing a long-term facility of EUR 300 million 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 for Alimak 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 and Alimak 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 Alimak Group.

”The combination of Tractel and Alimak Group will create a leading global business with significant opportunity for future growth, in a market where there is substantial room for further penetration of our joint products and services. We look forward to the next chapter of our profitable growth journey as part of the Alimak Group,” says Philippe Gastineau, CEO of Tractel

www.alimakgroup.com

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