Delta Plus Group: the right dosage?

(Boursier.com) — Delta Plus Group rises 0.8% this Thursday to 67.80 euros, while the group continues its strategy of geographic consolidation and strengthening of its position in high value-added markets with the acquisition of the company Armor, specialist in safety shoes high-end in the Benelux. The acquisition of Armor allows Delta Plus to consolidate its presence in the Benelux, a region with high potential in Europe, and to occupy a leading position in the premium foot protection segment. This operation is a continuation of the acquisition of Maspica in 2022, as well as Delta Plus’ strategy aimed at sustainably positioning itself as a leader in high-end PPE solutions.

Founded in 1999 in Groningen, the Netherlands, Armor has over the years become a key player in the distribution and marketing of high-end safety shoes on the Benelux market. With around twenty employees and a warehouse located in Groningen, Armor relies on a network of more than 500 distributors and a complete range of safety shoes and accessories. The company is recognized for its expertise in the marketing of high-end shoes, in particular Sixton brand products which represent 85% of its sales and are manufactured by the Maspica company, already a 100% subsidiary of Delta Plus Group since its inception. acquisition in 2022.

In 2023, Armor reached a turnover of 13.2 million euros, of which 80% in the Netherlands and the rest in Belgium, and shows average annual growth of around 15% over the 6 recent years. After elimination of intra-group turnover between Maspica and Armor, this acquisition should bring approximately 5 million euros of additional turnover to Delta Plus with an accretive effect on the group’s operational profitability.

“The combination of Armor’s know-how in the distribution and marketing of high-end footwear and Delta Plus’ expertise in PPE in general, as well as the cultural proximity between these two companies, will create a platform solid for the future development of the group in the Benelux” comments the management of Delta Plus. Portzamparc estimates that the operation is modest (9 ME) and will therefore not weigh on the balance sheet. On the other hand, immediate value creation is limited. Enough to aim for a price of 84 euros while remaining on the purchase file.