Posted December 16, 2015

 

YPRES, Belgium – Picanol Group and Tessenderlo Group announced plans to combine the industrial activities of both companies into one larger industrial group, Picanol Tessenderlo Group NV. The deal involves the transfer of the current industrial activities of Picanol into Tessenderlo.

At an extraordinary general meeting the board of directors of Tessenderlo will call on shareholders to issue 25,765,286 new Tessenderlo shares at 31.5 euros, to compensate for the planned transaction to Picanol NV, based on a valuation of the Picanol activities at 811.6 million euros.

 

Tessenderlo Group, based in Brussels, is a worldwide specialty company that provides solutions for global needs in food, agriculture, water management and efficient (re)use of natural resources.

 

Picanol Tessenderlo Group will consist of four segments: the Tessenderlo segments Agro, Bio-valorization and Industrial Solutions, and the segment Machines & Technologies of Picanol. Picanol Tessenderlo Group will operate in more than 100 countries worldwide and realize a turnover of approximately 2 billion euros and a REBITDA of more than 200 million euros. It is the ambition of Picanol Tessenderlo Group to strengthen its prominent market position in each of the segments and to ensure a sustainable profitability.

 

The new diversified Picanol Tessenderlo Group can count on more than 7,000 strong and dedicated employees who will be offered wider opportunities for their future in the group. Moreover, Picanol Tessenderlo Group will be better able to attract, develop and keep new talent. The proposed transaction will not impact the current employment.

The agreement will allow for the sharing of the expertise of both companies, for establishing a common sourcing policy and for the enhanced support of the R&D and innovation culture.

 

Combining the respective cash flows of the two firms will not only benefit the financial independence of the company, but it will also permit continued investments in talent, growth and innovation under more challenging market circumstances. This will also provide the opportunity to propose a dividend policy to the shareholders, taking into account the sustainable growth that is pursued.

 

A strong embedment in Belgium will benefit the creation of shareholder value through the realization of an industrial long-term strategy.

 

Picanol NV (Euronext: PIC) will remain listed and will become a listed holding (with the name Picanobel NV) with a strong family shareholder base after the transaction.

The boards of directors of Tessenderlo Group and Picanol Group believe that the planned transaction is in the interest of both companies and they unanimously support the deal.

 

Source: Picanol Group and Tessenderlo Group