CFK Finance recently finalised the transaction of sale of CTMI S.A., (metalwork, piping, industrial mechanics) to the holding company, ALYZEE. This transaction more specifically involves its SOTUMEC subsidiary whose business is connected to that of CTMI.
Headed by Philippe Rossi since its establishment (1982), CTMI S.A. (28 staff in Seine-Maritime (76)) carries out most of its business in manufacturing and maintenance of storage tanks (petroleum, chemical and agro-food products). 70% of its turnover comes from maintaining and backfitting tanks for refineries and petroleum depots (Esso, Exxon, Shell, Hoecht etc.) and 30% from constructing new tanks. The sale of CTMI S.A. is a result of the seller’s wish to take his retirement. The 2003 turnover is in the region of 3.5 million Euros and the operating profit is higher than 10%.
The holding company, ALYZEE/SOTUMEC (50 staff in Seine-Maritime also), achieved a turnover of more than 6 million Euros in 2003 and posted an operating profit higher than 10%. Its growth has been steady and profitable for several years.
The sale transaction in a non-exclusive sell-side assignment was managed by Laurent Adrian, Partner/Director, and Eric Pincemin, Business manager, from the CFK Finance consultancy. “One of our competitors was carrying out an assignment simultaneously. Our intervention was considered more professional and our candidate more suitable by the seller despite a comparable profile and a higher financial offer,” comments Laurent Adrian.
With regard to this transaction, the mergers and acquisitions consultancy was involved in selective shortlisting, discussions and negotiations with potential buyers, and agreements. “What is interesting is to see how calmly the buyer, Stéphane Lhérondel, 38, dealt with his first development through external growth,” says Laurent Adrian. The terms of the agreement relate to the acquisition of 100% of the voting rights and the dividends of CTMI S.A; they were laid down on 2nd April through a memorandum of agreement subject to funding and auditing conditions precedent. The unconditional transfer of ownership took place on 30th June. Philippe Rossi, the seller, will support this industrial transaction until 31st December.
CTMI S.A. and ALYZEE holding company/SOTUMEC, positioned on conventional industrial markets, show that it is possible to post excellent financial results while having recourse to labour-intensive business activities. CTMI S.A. and SOTUMEC will benefit from synergies (same market, same business activity, same clients) and the transaction will enable the new entity to continue expanding.