(AOF) – To strengthen its business in order to create long-term shareholder value, Latécoère is continuing to advance discussions with several potential targets, which, if successful, would have a significant impact on the combined group.
In particular, after completion of its technical due diligence, Latécoère submitted two legally non-binding offer letters to acquire 100% of two separate companies, both based in North America, active in Aerostructures and which, in total, generated a turnover of approximately 90 million euros in 2021.
One of these offers, relating to the larger of the two target companies, has been approved by each of the boards of directors of Latécoère and the target with a view to the planned merger and the parties have entered into exclusive negotiations today until to April 29, 2022 to reach the finalization of a definitive legal documentation.
The second offer is currently being examined by the board of directors of the smaller of the two targets and remains subject in particular to the approval of the board of directors of Latécoère as well as the finalization of the definitive documentation relating to the ‘transaction.
Should these transactions materialize, they would require a maximum total cash investment of approximately €95 million (split on a basis of approximately 70/30 if the two transactions were carried out), which would be entirely financed by the proceeds from the August 2021 capital increase.
The completion of these operations should, in this case, take place within the next 12 months. However, there is no certainty that these acquisition projects will succeed at this stage.
AOF – LEARN MORE
Consolidation phase in aeronautics
The size of French players is very limited compared to that of their American competitors. Hence the need to bring these stakeholders together, thus making it possible to increase the budget allocated to research and development and to gain weight in international calls for tenders. The Aéro Partenaires investment fund was launched in 2020 to support this movement. It was created by the investment company Ace Capital Partners, a subsidiary of Tikehau Capital, with the French State, Airbus, Safran, Dassault Aviation and Thales. This fund carried out several transactions in 2021.