Ardian agreed to acquire a 60 percent stake in the global product solutions division of publicly listed engineering group Assystem. The global solutions division specializes in product engineering and post-development services for clients in the aerospace, automotive, transportation and manufacturing industries.
Assystem S.A. (ISIN no.: FR0000074148 – ASY) has signed an agreement with Ardian to transfer 60% of the company’s Global Product Solutions (GPS) division, leaving the former with 40% ownership.
Assystem aims to allow GPS to remain one of the main players in the ongoing consolidation of the R&D outsourcing market. By cooperating with the private independent investment company Ardian, the group gives GPS access to the resources and expertise that Ardian deploys to support the growth of its holdings, particularly through identification and financing of acquisitions.
GPS aims to respond to the expectations of its clients, who are willing to prioritise fewer suppliers with a more general, global offering. Enhancing GPS’s growth and its geographical and sectorial reach is of the essence to ensure, over the long run, its position as a market leader.
The company’s managerial teams will remain in place. Mr Olivier Aldrin, former deputy chief executive officer of the Altran group, will assume the role of chairman of the management board from the transaction date.
The agreement consists in an offer made by Ardian to benefit Assystem. It includes the organisation and financing of the GPS division acquisition, allowing Assystem to own 40% of the share capital of the acquisition vehicle. Ardian and Assystem are expected to conclude contracts as per the terms of the offer, upon receipt of notice from the employee representative bodies as required by the legislation in force. The operation is planned for end of Q3 2017 and is subject to approval by the relevant merger control authorities.
Dominique Louis, Chairman and CEO of Assystem, said:
“We believe that relying on Ardian’s skills and financial means was an excellent driver for accelerating GPS’s development and securing its position as a market leader. Ardian and Assystem are now partners in this new chapter of GPS’s history. We are confident in GPS’s success and convinced of the opportunities this partnership is creating for its clients, managers and employees.”
Lise Fauconnier, Managing Director Ardian Mid Cap Buyout, said:
“We are very pleased about the opportunity we are given to lead a development project for GPS, together with Assystem. GPS enjoys a strong growth and profitability dynamic which we plan to both continue and accelerate, through external growth, in an environment of consolidation for outsourced R&D.”
Assystem is an international group specialised in engineering and is listed on Euronext Paris. As a key participant in the industry for 50 years, Assystem supports its clients in developing their products and managing their capital expenditure throughout the product life cycle. Assystem employs more than 12,500 people worldwide and generated €956 million in revenue in 2016. Assystem SA is listed on Euronext Paris (ISIN no.: FR0000074148 – ASY).
GPS, which had revenues of €578 million in 2016 (of which 59% in aerospace, 33% in automotive and 8% in transportation & industry), specialises in product engineering and post-development services for industrial clients operating in the aerospace, automotive, transportation and manufacturing industries. Its activity is highly technical and the company has proven expertise in critical and complex systems.
E&I, which had revenues of €316 million in 2016 (of which 60% in Nuclear and 40% in Energy Transition & Infrastructures), specialises in engineering in the sectors of energy and infrastructure. E&I operates in restricted environments, with strong operating safety requirements, renewable energies, transport infrastructure and building, as well as the life sciences. On the nuclear market, Assystem is one of the four leading engineering companies in the world, and the largest independent actor in Europe. For more information, visit www.assystem.com. Find Assystem on Twitter: @Assystem
Founded in 1996 and headed by Dominique Senequier, Ardian is an independent private investment firm that advises and/or manages $60 billion of assets in Europe, North America and Asia. The company, which is majority-owned by its employees, has always placed entrepreneurial spirit at the heart of its approach and offers its international investors investment performance while participating in the growth of companies around the world. Ardian’s investment philosophy is based on three pillars: excellence, loyalty and entrepreneurship. Ardian relies on a solid international network, with more than 450 employees working in twelve offices in Paris, London, Frankfurt, Milan, Madrid, Zurich, New York, San Francisco, Beijing, Singapore, Jersey and Luxembourg. The company offers its 580 investors a diversified selection of funds covering the entire asset class, with Ardian Fund of Funds (primary, early secondary and secondary), Ardian Private Debt, Ardian Buyout (including Ardian Mid Cap Buyout Europe & North America, Ardian Expansion, Ardian Growth and Ardian Co-Investment), Ardian Infrastructure, Ardian Real Estate and Ardian Mandates. For more information, visit www.ardian.com. Find Ardian on Twitter: @ardian