(AOF) – Jacquet Metals, a leader in the distribution of special metals, has signed a definitive agreement for the acquisition of several distribution companies from Swiss Steel Group, a world leader in the production of special long steels. This acquisition will strengthen the positioning in Central and Eastern Europe of the IMS group division, which specializes in the distribution of engineering steels. The scope of the transaction includes companies in the Czech Republic, Poland, Slovakia, Hungary, Lithuania, Estonia and Latvia.
These are companies that generated in 2022 a turnover of 158 million euros and an EBITDA of 12 million euros with 267 employees, mainly by selling steels not produced by Swiss Steel Group.
This is the second significant agreement between Jacquet Metals and Swiss Steel Group following the acquisition of distribution entities in Germany, Austria, Belgium and the Netherlands in 2015. With this transaction Jacquet Metals and Swiss Steel Group will increase their business relationships and continue to cooperate as long-term partners.
The completion of the transaction is subject to the usual conditions precedent including the approval of the transaction by the competent competition authorities. Completion of the transaction is expected in the second quarter of 2023. Jacquet Metals will finance the entire transaction using its available cash. The parties have agreed to keep the acquisition price confidential.
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Concerns remain
According to the Federation of Specialized Trade, Procos, in October 2022, activity fell by 1.5% over one year. Nevertheless, the beauty and health (+ 5.2%) and specialized food (+ 3.5%) activity is dynamic compared to October 2021. The frequentation of the points of sale was very impacted by the problems of fuel and bad weather. Compared to October 2019, the pre-covid year, the drop in attendance is very sharp (-20.9% in October). Shopping centers and the outskirts are more impacted than city centers with a difference of four to five points.
Several reasons for concern exist for the future. The players are experiencing a very significant scissor effect given the increase in their operating costs while the evolution of demand is very uncertain. Very few brands can pass on the increase in their costs to their selling prices. The federation therefore asks, among other things, to limit the indexation of the Commercial Rent Index to + 3.5% for the rents of all companies in 2023. It also invokes an absolute urgency: to cap the price of energy for 2023 and retroact on the contracts already signed to prevent the rate of failures from accelerating.