HERIGE Group confirms its position as a leading industrial player in sustainable construction and announces that it has entered into exclusive negotiations with SAMSE Group to sell its Building Materials Trading division
Building on the success of its Joinery (ATLANTEM) and Concrete (EDYCEM) businesses, which have driven its rise to become a leading French industrial player, and on its strong CSR commitments over the last few years, HERIGE Group now intends to intensify its focus on industrial efficiency, innovation and decarbonization within these two divisions.
Following approval by the Group's Supervisory Board on December 2, 2023, HERIGE announces that it has entered into exclusive negotiations with SAMSE Group for the sale of its Building Materials Trading, Public Works and Natural Stone businesses (VM Matériaux, LNTP and Cominex).
In recent years, HERIGE has focused its research and development activities on products that meet the challenges of the sector's move towards more sustainable construction, including the development of Vitaliss®, which offers a range of low-carbon concrete products. The Group has also greatly strengthened its positioning as an industrial player, as demonstrated by its external growth transactions1. Thanks to these acquisitions, the Group has stepped up its regional coverage across France and developed synergies in new markets.
In line with HERIGE's stated ambition of profitable growth with a positive impact, the transaction would give the company the means to step up its industrial investments to boost productivity and operational performance, while consolidating its position in energy and the circular economy.
The scope of this sale2 represents a turnover of €383.5 million and 79 points of sale in Western France. All 1,155 employees would join SAMSE Group, which is recognized for its strong human values. Their presence would help further strengthen the company’s geographical coverage and business development, without compromising its close ties with customers.
The enterprise value of the scope to be sold is estimated using an EBITDA multiple3. The value of the shares is calculated by deducting adjusted net debt from this enterprise value. The transaction would reduce HERIGE’s debt by around €120 million (improving gearing by 83 points) and generate a capital gain of around €24 million, i.e., +16% in equity. This would provide the Group with additional resources to develop its two industrial divisions: Concrete with EDYCEM and Joinery with ATLANTEM.
Benoît Hennaut, Chairman of the Executive Board of HERIGE Group, said: “The planned transaction will enable HERIGE to concentrate on its industrial development strategy, with a fast-paced rollout of CSR and innovation initiatives. It is perfectly in line with our growth strategy focused on high value-added activities, based on an offering tailored to the challenges of energy renovation and the circular economy. For SAMSE Group, the acquisition will support its drive to bring commercial and human synergies to its trading businesses. As two-family groups with shared values, our common culture has brought us together. Our Group has a bright future ahead, and this planned sale is just one of the chapters in the long-term, profitable and sustainable industrial ambition driving us forward.”
This announcement follows a competitive tender process.
The proposed sale remains subject to informing and consulting with employee representative bodies, obtaining approval by the relevant competition authorities, and conducting environmental audits. The usual asset and liability warranties would be given. The planned transaction is scheduled to complete in spring 2024.
HERIGE will keep the market informed of further discussions between the two groups.
1 Acquisition of four joinery companies (Activence, Poralu, MGT and Coferm'Ing) and one concrete company (Audoin et Fils), three plants in the Bordeaux region and a recycled aggregates platform.
2 All financial data are calculated on the basis of an estimate for full-year 2023.
3 Operating profit + net depreciation and amortization.
All our financial communications are available on our website: www.groupe-herige.fr/en
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