Jul 27 2007
Plastic Omnium announced its commitment to focusing on two core businesses—automotive equipment and products and services for local communities— and to significantly strengthening the latter.
As part of this strategy:
- Compagnie Plastic Omnium has acquired, with effect from 1 July 2007, all outstanding shares of Compagnie Signature. A major player in road signage in Europe, Compagnie Signature earns €240 million in annual revenue from vertical signage, road markings, safety equipment and urban furniture. It was a wholly-owned subsidiary of Burelle SA, Compagnie Plastic Omnium’s majority shareholder. Based on an independent valuation by banks, the two companies’ Boards of Directors approved the price of the Compagnie Signature shares at a total €90 million, paid in cash.
- Compagnie Plastic Omnium is planning to form an alliance with Eurovia in road signage. Compagnie Signature is also in the process of finalizing a partnership agreement with Eurovia, a Groupe Vinci subsidiary that is one of the world’s leading builders of transportation infrastructure. The agreement would create two companies, consolidating the partners’ horizontal and vertical signage operations, which would be jointly owned through cross shareholdings. Following the transaction, Compagnie Signature would own 65% of the vertical signage business, which it would manage with Eurovia as a minority partner, and Eurovia would manage the new horizontal signage business with 65% of the capital and Compagnie Signature as a minority partner. The agreement would offer both partners major innovation and development opportunities, as well as additional financial resources to step up growth in France and Europe. While still subject to consultation with employee representatives and approval by competition authorities, the proposed partnership is expected to be completed in the second half of the year.
- At the same time, Compagnie Plastic Omnium should complete the acquisition of Germany’s Sulo Environmental Technology from Veolia Propreté. With €200 million in revenue, Sulo Environmental Technology is a major player in Europe in the production and marketing of household waste bins and metal containers. Its acquisition extends Plastic Omnium Environment’s manufacturing and marketing presence in Germany and Eastern Europe, while broadening its services portfolio. The transaction remains subject to approval by the competition authorities. Following these transactions, the services for local communities business is expected to generate more than €600 million in revenue in 2008, with enhanced potential for innovation and development.
Proposed sale of a majority stake in 3P
Separately, Compagnie Plastic Omnium is in exclusive negotiations to sell its Performance Plastics Products - 3P to private equity fund Osiris Partners, in association with company management. By acquiring 72% of 3P, Osiris Partners and 3P management are expected to give the company the means to significantly enhance its growth potential. The proposed sale is subject to consultation with employee representatives.