A long-term investor
Wendel is a hands-on investor and shareholder that assists sector-leading companies in their long-term development. Wendel's business model combines the entrepreneurial passion born of a long family tradition with a culture of performance and accountability.
MECATHERM IN BRIEF
Why did we invest in Mecatherm?
The Mecatherm group is the world leader in industrial bakery equipment; it has attained, for example, a 60% market share in highcapacity lines. It serves the entire market with three complementary solutions: “High Capacity” lines (traditional baguettes and crusty bread), “Premium” lines (artisan quality bread and baguettes), and “Variety” lines (buns, brioches, loaves of bread, pastries, etc.). Today, the group has an installed base of 500 automatic lines in more than 50 countries worldwide, representing 15,000 tons of goods produced by Mecatherm lines every day. The group benefits from high barriers to entry:
• unique R&D and product innovation knowhow with its team of 25 experts. Since 1995, the group has launched nearly 20 new products and benefits from 15 active patents;
• strong brands (Mecatherm and Gouet) and the trust of its clients (50% of its clients have been customers for over 10 years);
• a sales network that has more than doubled in three years, with about 30 sales representatives serving all market segments.
Wendel finalized its acquisition of the Mecatherm group through Orange-Nassau Développement in October 2011.
Highlights of 2011
In 2011, the Mecatherm group’s net sales totaled 85.6 million, down 3.7% from 2010.
As expected, growth in the group’s sales was slightly curtailed in the fourth quarter of the year, as a result of the accounting impact of a slight offset in the timing of new orders. Adjusted operating income was €15.6 million, down 11.7% from 2010. The adjusted operating margin came in at 18.3% vs. 19.8% in 2010. Mecatherm’s high profitability demonstrates that its industrial model is well-adapted to the market. All equipment is modular and manufacturing is fully outsourced, enabling the company to optimize its cost structure at all times while focusing its expertise on R&D and customer service. Mecatherm was consolidated beginning in the 4th quarter of 2011.
Outlook for development
The group’s growth is based on four main pillars:
• geographic expansion as bread consumption and demand increases in high-growth countries, where the group already achieves 36% of its net sales;
• the growing share of industrial bakery on a global scale;
• market consolidation, reinforcing the group’s range with complementary technologies.
• bigger market shares in the “Premium” and “Variety” segments;
These major assets, combined with a light cost structure and rigorous financial discipline, should allow the Mecatherm group to expand further and strengthen its leadership positions.
30 June 2011: Wendel: exclusivity agreement in view to acquire MECATHERM, the world leader in industrial bakery equipment
11 July 2011: Wendel: signature of a share purchase agreement to acquiring the MECATHERM Group, the world leader in industrial bakery equipment
04 October 2011: WENDEL ACQUIRES THE MECATHERM GROUP VIA ORANJE-NASSAU DÉVELOPPEMENT