(BFM Bourse) – Down nearly 25% since the start of the year, against a background of exposure to Russia, Bonduelle’s share price rose on the stock market on Wednesday following the announcement of a major capital transaction on the North American market.
Capitalizing just over 510 million euros at Tuesday’s close (i.e. an enterprise value of around 1.1 billion euros by adding its net debt), Bonduelle will bring in a duo of renowned investors in the capital of Bonduelle Americas Long Life (long-life products) during a transaction valuing this subsidiary alone – representing a little less than a quarter of total activity – at 625 million euros. Investors read in the operation an implicit undervaluation of the group, and therefore return to the title which takes 5.23% to 16.50 euros around 3:15 p.m.
The northern agri-food company announced Tuesday after the market the entry into exclusive negotiations with two Quebec institutional investors, the Fonds de solidarité FTQ and the Caisse de dépôt et placement du Québec, with a view to the acquisition in equal parts between the latter, of 65% of Bonduelle Americas Long Life, which manages the group’s long-life activities (canned and frozen) in North America. Launched in the 1980s at the initiative of the major FTQ labor federation, the Fonds de solidarité FTQ is none other than the largest development capital investment network in Quebec today. Its financial size allows it both to remunerate (very correctly) savers who hold shares and to make investments aimed in particular at promoting employment in Quebec.
These two institutions will therefore acquire 65% of the capital of Bonduelle Americas Long Life (BALL), on the basis of an enterprise value of 850 million Canadian dollars (approximately 625 million euros) for 100% of the capital, which corresponds to 8.2 times the Ebitda generated in 2020-2021.
With a turnover of 943 million Canadian dollars for the year 2020-2021, BALL is dedicated to the processing and marketing of canned and frozen vegetables, in the United States and Canada, in mass distribution for the retail and foodservice, primarily private label, third party brands as well as its own brands such as Arctic Gardens and Del Monte.
This partial disposal project follows the strategic review of the group’s activities, and in particular BALL, announced in September 2021. The transaction should enable Bonduelle to continue the deployment of its activities, in particular branded, in line with its strategic priorities and its ambition for sustainable growth with a positive impact. “The entry into the capital of the Fonds de solidarité FTQ and the CDPQ would allow BALL to continue its development in a constantly consolidating North American market and to finance its growth and profitability investments, without new allocations of resources by the Group. Bonduelle, the latter benefiting in the long term, as a minority shareholder, from the creation of value of this activity up to 35%”, detailed Guillaume Debrosse, the general manager of the firm based in Renescure, in the North- Pas de Calais.
For its part, the Fonds de solidarité FTQ highlights a “structuring” transaction for the Quebec agri-food sector, which will allow BALL to continue its North American expansion, while maintaining a head office in Brossard, Quebec. The Fund’s participation in this transaction comes on top of historic investments of nearly C$1.3 billion in agribusiness (total assets exceed C$18 billion today).
Guillaume Bayre – ©2022 BFM Bourse
Are you following this action?
Receive all the information about BONDUELLE in real time: