Delachaux: the first major IPO of the year in Paris ?

After a first quarter completely out of the blue, ipos are finally gone ahead in paris. But when an operation of great size be in 2018 ? After the cancellation of the IPO (‘Initial Public Offering’ according to the English expression) of Novares in February, it is one of Delachaux, which could open the ball.

Without remembering those that have occurred on Euronext Access, the ex-free Market, there are already about a half-dozen of transactions (completed or underway) since the beginning of the month of April as Vente-unique.com, Oxatis, Dontnod Entertainment, Voluntis or Enensys Technologies.

Remains that it is rather young companies. What about the ‘large’ introductions ? In the beginning of the year, the automotive supplier Novares seemed poised not only to open the ball of the IPO in paris, but also to achieve an operation of the right size. Founded in 1955, the ex-Mecaplast was intended, in 2018, a CA of between 1.20 and 1.25 billion euros, and a growth of over 7.5% in 2019. He had, moreover, to be valued in the Stock market at around 500 million euros. But in mid-February, Novares has renounced to its project, citing the ‘volatile markets’.

Now that the Scholarships are more focused and that the CAC 40 is lifted to its highest levels in about a decade, Delachaux could take the suite. The management has expressed its intention that in about a month and on the 15th of may, the group has registered its document de base introduction to the financial markets Authority, the first step of the potential of the operation.

Delachaux ? It is a group dating back to 1902, when Clarence Delachaux has developed a process of thermite weld for the transport companies. Its history has already crossed that of the stock Exchange, where the group was introduced in 1985. Before come out in 2011 at the instigation of the family and of the funds of CVC Capital, which currently each hold half of the capital approximately.

The group has two branches : the first, Infrastructure of the rail, focuses on ‘systems of fixation (20% of global market share, ed), (of) the products of the thermite weld (45%), (of) the material path and control, (of) equipment electrification for urban networks’. It represents nearly 60% of sales and adjusted operating income for the year 2017.

The other branch, the industrial Activities are diversified, includes the manufacture and design of power management systems and data, marketed within the line of products for Energy and Data Transmission Systems (EDMS ; global market share : 20%) under the trademark Conductix-Wampfler, the manufacturing of chromium metal, marketed under the brand name DCX Chrome (global market share : 25%), within the line of products Chrome Metal and the line of products Magnetism, including magnetic systems, lifting and sorting.’

Delachaux claims the position of world leader in its major product lines. In 2017, its sales have reached 841,4 million euros to 112 million in current operating income and net profit of 55 million. By 2018, it expects to achieve a turnover of at least € 900 million with an organic growth of at least 8%. The adjusted operating income promises to be at least 115 million.

The group also carries a gross debt of around 650 million euros and CVC Capital intends to highlight, or at least begin to do so. Delachaux also, on the occasion of its IPO, a capital increase of about 100 million. This should help to bring it back, and the end of 2018, with net debt at 2.75 times EBITDA, provides the direction. Follow.

EG

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