Press release Acquisition of Verseidag-Indutex

• Transforming Serge Ferrari Group size with pro forma consolidated 2019 revenues of€273 million
• Consolidating the Group's position in its strategic market segments
• Strengthening the Group's position in Germany, Europe's largest market, and accelerating its internationalization in the Middle East, the United States and China
• Global refinancing of Serge Ferrari Group in a tensed economic environment

Saint-Jean-de-Soudain,July29,2020,5:45pm CEST – Serge Ferrari Group (FR0011950682 - SEFER) designs, manufactures and distributes innovative flexible composite materials and is listed on Euronext Paris –Compartment C. The Group today announces the acquisition of Verseidag-Indutex from Jagenberg AG, for an undisclosed amount. It thus strengthens its position as the world leader in flexible composite materials for the Tensile Architecture and Modular Structures markets. With this acquisition, the Group also becomes a key player in the field of non-combustible solutions.

Sébastien Ferrari,Serge Ferrari Group Chairman and CEO,commented: “For Serge Ferrari Group, the acquisition of Verseidag-Indutex is a key and transforming step in its growth momentum, and structuring in its international development as well as in its innovation strategy. We are extremely proud of it, as the acquisition of Verseidag-Indutex enables the Group to become the undisputed global leader in two of our strategic market segments: Tensile Architecture and Modular Structures. The acquisition of Verseidag, an iconic brand and leading company recognized worldwide, is completely in line with our selected acquisition strategy, to strengthen our commercial, product and technological bases.”1Pro forma 2019 consolidated revenues including F.I.T. and Verseidag-Indutex

Acquisition by Serge Ferrari Group from the Jagenberg Group of a world-renowned company

The Serge Ferrari Group announces that it has concluded a final agreement with the Jagenberg Group for the acquisition of Verseidag-Indutex, thus strengthening its global positioning in the fast-growing market of flexible composite materials.

Located in Krefeld, Germany, Verseidag-Indutex, world leader in PTFE glass materials, operates on the markets of Tensile Architecture and Modular Structures markets. Verseidag-Indutex also operates in the sectors of Industrial, Biogas, Large Format Digital Printing, Solar Protection for Building and Automotive industry.

Verseidag-Indutex currently employs close to 250 people located on its four industrial sites in and around Krefeld, and has sales subsidiaries in four geographical areas: in Europe, including Germany, which is the largest European market, in the United States, the Middle East and Hong Kong. Verseidag-Indutex and the acquired companies generated consolidated revenues of €72 million in 2019.

As part of this acquisition and according to the terms of the signed agreement, Mr. Jan Kleinewefers, main shareholder of Jagenberg, will be co-opted to the Board of Directors of Serge Ferrari Group and Dr. Erich Bröker, CEO of Jagenberg, will become a member of the Strategic Committee of Verseidag-Indutex

Dr Erich Bröker, CEO of Jagenberg AG,added: “Based on the extensive investments during the last 10 years in the development of technologies, innovative products and know-how, the industrial logic of combining these two premium suppliers was that convincing that we were prepared to sell our subsidiary Verseidag-Indutex. The newly created Group of companies opens up growth perspectives that neither of them could have achieved on their own.”

Strengthening of Serge Ferrari Group's position as world leader in Tensile Architecture and Modular Structures markets, and in the field of non-combustible solutions

This transforming acquisition enables Serge Ferrari Group to strengthen its international leadership and strategic positioning within two of its four priority business segments. It is consistent with its external growth strategy aimed at integrating complementary companies in terms of sales networks, products and technology on its priority business segments. It follows, in the first half of 2020, the acquisition of a majority stake in the capital structure of F.I.T. in Taiwan, a designer, manufacturer and distributor of high-tech non-combustible materials, thus creating a leading global player of non-combustible solutions.

This acquisition will allow to generate significant synergies in the future, as the activities of Serge Ferrari Group and Verseidag-Indutex are highly complementary in terms of product ranges, sales networks, marketing and manufacturing. Verseidag-Indutex’s strong position in PTFE glass materials for Tensile Architecture and Modular Structures in particular, in combination with Serge Ferrari's unique proprietary Précontraint® technology, will enable the Group to develop a very complete and diversified commercial offer. In addition, the Verseidag-Indutex product range will strengthen the Group's position in new segments such as Large Format Digital Printing, Solar Protection for Building and Automotive industry. The plan is to continue to develop both the Verseidag brand and those of the Serge Ferrari Group, which already enjoy a high level of recognition. 

Markus Simon,CEO of Verseidag-Indutex Gmb Hadded: “The product ranges and production-related synergies will provide us with great advantages in the future. Furthermore, the unwavering and long-standing commitment of the teams of both our companies to continuously offer their customers innovative product solutions with the highest quality standards fits together remarkably well.”

Sébastien Baril, Marketing and Digital Transformation Director of Serge Ferrari Group, will have the responsibility of the integration of the Verseidag-Indutex Group into the new Group thus formed. He concluded: “This acquisition will strengthen the Group's fundamentals. It also reinforces our position in the very attractive market for innovative non-combustible solutions and allows us to expand our product portfolio with, for example, larger production widths or environmentally friendly coating techniques that present great development potential. The highly complementary nature of the product ranges, business expertise and geographical footprint of our two companies is a definite step forward for the Group

Financial terms of the acquisition

Under the terms of the operation, Serge Ferrari Group acquired 100% of the shares of Verseidag-Indutex and of the companies Verseidag Seemee US and Cubutex GmbH and 60% of DBDS Deutsche Biogas Dachsysteme GmbH, in return for a cash payment in two instalments (one at closing, the other in 2021), a payment in Serge Ferrari Group shares also in two instalments (one in 2021, the other in 2022) and an earn-out to be paid in 2023, indexed to the EBITDA growth.

Simultaneously, in order to finance its external growth operations, the 2020-2022 investment and development program, and to refinance its existing debt, Serge Ferrari Group has entered into credit agreements with its banks for €75 million, as well as financing with Euro PP lenders (bond format) for €20 million, which can be increased to €30 million. These financing lines will be implemented progressively, depending on the needs. 

Outlook for the new consolidated Serge Ferrari Group

In 2019, the pro-forma consolidated revenues including F.I.T and Verseidag-Indutex amounts to €273 million. Given the current economic context linked to the health crisis, it is not possible to comment at this stage the new Group's revenues estimates for 2020, nor its profitability.

Financial Calendar

Publication of H1 2020 results on Wednesday, September 9,2020, after market close  

For more information, please download the press release