1 — DEVELOP AND CRYSTALLIZE VALUE
… by pursuing the long-term growth of our portfolio companies and by taking advantage of opportunities to divest, form partnerships, list companies on the stock exchange or reinvest in our companies.
2 — INVEST
… around €750 million in equity each year, depending on market conditions, in Europe, North America, and Africa, in companies with exposure to long-term growth trends. Part of this amount may come from partners who share our investment philosophy.
3 — STAY VIGILANT
… keeping net debt under strict control, maintained at under €2.5 billion, while maintaining a balance in the portfolio between listed and unlisted assets.
4 — ACHIEVE OUR AMBITIOUS FINANCIAL OBJECTIVES
… with a double-digit average return to shareholders, dividends increasing year after year, and regular share repurchases, depending on opportunities.
Wendel's investment profile
Essentially, Wendel invests in the leading companies in their sectors that have the potential of rising to the top in the medium to long term, thanks to our support and by dint of their model and their management.
Growth and transformation
Companies well positioned to capitalize on high-growth regions and/or major long-term economic trends, such as: demographic changes, urbanization, sustainable growth, safety and
security, digitalization, etc.
With high potential for long-term profitable growth, through both organic growth and value-creating acquisitions.
Initial equity investments of generally between €200 million and €700 million, with possible reinvestment over time to support organic or external growth.
Companies based in Europe, North America, and Africa with signiﬁcant international exposure or an international growth strategy.
Balanced governance mechanisms that enable us to fully assume our role as shareholder.
Experienced, top-ranking managerial teams who share our vision.
Co-investment mechanisms that align their investment interests with those of Wendel.
Debt on the level of the Group companies is non-recourse regarding Wendel and scaled on the basis of their growth proﬁle and ability to generate cash ﬂow.
Wendel does not invest in sectors whose reputation would be detrimental to its image or values.
Acquisitions by Group companies
Growth by acquisition is an integral part of the development model of Wendel Group companies. Our companies plan to achieve a non-negligible share of their growth through acquisitions, focusing on small or medium-sized purchases, which create the most value.
Wendel’s teams assist Group companies in their search for accretive acquisitions, in deploying their external growth strategy and in arranging the required financing.
Our entrepreneurial model
Wendel has set up co-investment systems to allow its principal managers to invest their personal funds in the same assets in which the Group invests and be involved in the creation of value in the Group. This gives executives a personal stake in the risks and rewards of these investments.
Various mechanisms also exist to allow senior managers to participate in the performance of each entity. For our listed subsidiary,Bureau Veritas, these mechanisms consist of stock-option and/or bonus share plans. For unlisted subsidiaries (Cromology, Mecatherm, Stahl...), the participation policy is based on a co-investment mechanism through which these executives may invest significant sums alongside Wendel.
Success Stories : developing companies
over the long term to help become leaders
Wendel partners with companies for the long run, such as with Capgemini or BioMérieux. Although it may hold an investment for a shorter period, Wendel always makes decisions with the company’s enduring interests in mind. Wendel supports acquisitions and capital expenditure, keeping a constant focus on innovation.
Capgemini : 1982-2006
- Held for 24 years
- Became a world leader in consulting and IT services
- Sales increased 45-fold
- IPO in 1985
- Investment multiple: 1.5x
- Amount invested by Wendel: €1,290 million
Biomérieux : 1988-2007
- Held for 19 years
- Became a global player in in vitro diagnostics; world leader in clinical and industrial microbiology
- Margin improved by 330 points over the 2003-2007 period
- IPO in 2004
- Investment multiple: 4.4x
- Amount invested by Wendel: €106 million
Editis : 2004-2008
- Held for 4 years
- Margin improved by 400 points over the period
- 6 acquisitions
- Sold to a publishing industry player, Spanish group Planeta
- Investment multiple: 2.7x
- Amount invested by Wendel: €183 million
Stallergènes : 1993-2010
- Held for 17 years
- Became the world leader in allergy immunotherapy
- Sales increased 10-fold
- Sold to a highly specialized family-held investment company (Ares Life Sciences, founded by the Bertarelli family)
- Investment multiple: 35x
- Amount invested by Wendel: €12 million
Deutsch : 2006-2012
- Held for 6 years
- Continued support of innovation in a difficult economic environment
- Margin improved by 500 points over the period
- Sold to the industry world leader, TE Connectivity
- Investment multiple: 2.5x
- Amount invested by Wendel: €388 million
Legrand : 2002-2013
- Held for 11 years
- Global specialist in electrical and digital building infrastructures
- 2002-2012: revenues increased by more than 55%
- Over 30 acquisitions
- Relisted on the stock exchange in 2006
- Investment multiple: 3.9x
- Amount invested by Wendel: €659 million