Applus+ regains prominence in the park with a rise of almost 7%, up to 9.25 euros, after confirming that it has received signs of interest from various venture capital funds to take over the company. Specifically, the group details that these are non-binding and unsolicited offers from Apollo, Apax and TDR. In a statement to the CNMV, the group details that these investors have requested access “to a review of information” and that Applus+ has “granted it”, while adding that as far as the company knows “there is no type of decision by any of these investors or the certainty that said entities will carry out any additional action”.
This is how Applus+ reacted to the news published yesterday by ‘Reuters’ in the sense that several international funds are studying a takeover bid for the company, which has a market capitalization of around 1,250 million euros. According to the aforementioned media, Applus+ is holding consultations with JPMorgan to assess the operation, for which the American firm Apollo and the British Apax Partners, dedicated to venture capital, have been interested separately. There is also a consortium formed by the firms I Squared and TDR that would also be interested in the Spanish company, specialized in businesses such as ITV.
With this increase, the Applus+ shares continue their ‘bullish rally’ after yesterday they rose almost 14% at the close of the session due to the possible interest of various venture capital funds in acquiring the company for an amount that would exceed 1,000 million a few euros. This fight over the business comes just weeks after Applus+ sold 100% of its US non-destructive testing and inspection business, which primarily serves the oil and gas industry, to a financial investor.
The transaction is subject to certain regulatory approvals and is expected to be completed in the coming months. Applus+ has specified that, although the price of this transaction “is not material”, with it it will improve its profitability and the return on the capital employed and “it will reinforce the quality of its portfolio”. The business from which the company has divested showed a turnover of approximately 100 million euros in 2022, with operating losses, “in challenging competitive conditions in the local market in recent years,” the company stresses.
Applus+ will continue with the rest of its North American businesses, which now account for around 10% of group revenue. In recent months, the company has announced three underperforming divestments, with a turnover of approximately €150 million in 2022. In addition, since the Strategic Plan was announced in November 2021, it has made seven acquisitions and the purchase of the 20% minority stake in the ITV business in Galicia that it did not yet own. In total, to date, the company has invested approximately €100 million in strategic areas of the portfolio that enhance the service offering in its most sustainable, fastest-growing, and best-margin businesses.
