PARIS (Agefi-Dow Jones)–The listed investment vehicle (“Special purpose acquisition company” or Spac) 2MX Organic and InVivo Retail, which brings together the activities of the French agricultural cooperative group InVivo Group in distribution, have finalized their merger and become Teract, the various parties announced on Friday.
This marriage allows the creation of a “major disruptive player”, “combining tradition and modernity, production and distribution, agricultural know-how and innovation, in-store and online experience”, said Teract in a press release.
The company will be listed on the Paris Stock Exchange under its new corporate name, Teract, as of Monday, under new ticker codes (“TRACT”) and Isin (“FR001400BMH7”). The Spac 2MX Organic set up by Xavier Niel, the founder of Iliad, the investment banker Matthieu Pigasse and Moez-Alexandre Zouari, which operates 1,500 stores under the Franprix, Monoprix and Picard names, had signed the initial public offering on largest of the year 2020 in Paris, raising 300 million euros. The 2MX Organic stock closed up 8.4% on Friday, at 7.46 euros.
InVivo Retail valued at €675 million
As announced at the end of March, the merger of the two entities resulted in an enterprise value of 675 million euros for InVivo Retail, whose annual turnover under banners is close to 3 billion euros and the turnover consolidated business of 1.35 billion euros. InVivo Retail brings together the Gamm vert, Jardiland and Delbard brands in gardening, Frais d’Ici and Bio&Co in food distribution, as well as the Noa pet stores. In total, its network has 1,597 stores in France, of which 213 are directly owned.
The transaction consisted of a contribution in kind of InVivo Group’s entire stake in the capital of InVivo Retail, representing 100% of the latter’s share capital and voting rights, in favor of 2MX Organic. The contribution in kind of InVivo Retail shares by InVivo Group was fully remunerated by the issue of new 2MX Organic shares, at a unit price of 10 euros. Following this issue of shares, InVivo Group became the controlling shareholder of 2MX Organic.
Bpifrance enters the capital of Teract
After the completion of all planned capital transactions, InVivo Group will own 68.70% of the capital and voting rights of Teract, while the participation of the founders of Spac will be 12.25% and Bpifrance will hold 1. 48% of titles. The public investment bank has indeed benefited from a capital increase reserved to invest 12 million euros in Teract.
The funds raised, which come on top of the remaining proceeds from 2MX Organic’s IPO at the end of 2020, provide Teract with just over €100 million in financial resources to implement its commercial expansion strategy. . As a priority, Teract intends to develop a new store concept under the “Grand Marché – Frais d’ici” brand, which will specialize in the food distribution of fresh and local products. Backed by the garden centers of the InVivo Retail network, the “Grand Marché – Frais d’ici” stores will draw on the strengths of the new entity, in particular the securing of supplies through the network of InVivo member cooperatives.
In terms of governance, Thierry Blandinières, the managing director of InVivo Group, has been chosen to chair Teract’s board of directors, while Moez-Alexandre Zouari becomes its managing director. Cédric Carpène, Bertrand Hernu, Bertrand Relave, Maha al-Bukhari Fournier, Ewa Brandt, Marie-Amélie de Leusse and Soraya Zouari are appointed directors.
Furthermore, in the context of Bpifrance’s investment in Teract, the appointment of Bpifrance Investissement, represented by Louis Molis, as a member of Teract’s board of directors will be proposed to the company’s next general meeting, and to the later when approving the financial statements for the year to be closed on June 30, 2023.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: VLV
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July 29, 2022 13:30 ET (17:30 GMT)