Wendel completes the acquisition of a 51% stake in IK Partners, a
major step in the deployment of its strategic expansion in
third-party private asset management
Wendel completes the acquisition of a 51% stake
in IK Partners, a major step in the deployment of its strategic
expansion in third-party private asset management
Wendel (Euronext: MF.FP), today announced the
completion of the acquisition of 51% stake in IK Partners
(“IK”), following regulatory approvals.
As part of this initial transaction, Wendel will
invest a total of 3831 million euros, or c. 12.5 times the
estimated 2024 pre-tax Fee Related Earnings (“FRE”)2, to acquire
51% of IK’s shares. Wendel Group is also entitled to 20% of carried
interest generated on all future funds raised by IK.
The 383 million euros will be paid by Wendel in
two stages:
- 255 million euros today, following the
transaction closing,
- 128 million euros on May 14, 2027,
subject to certain conditions.
The remaining 49% of IK’s capital will be
acquired by Wendel in subsequent transactions, which will take
place between 2029 and 20323, in accordance with the announcements
made on October 17, 2023.
Wendel's ambition is to build a sizeable
platform managing multiple private asset classes, alongside its
historical principal investment activity. The development of this
platform will provide Wendel with recurring cashflows and exposure
to the performance of multiple asset classes. Wendel’s ambition is
to reach 150 million euros in FRE by 2027 in third-party private
asset management. Wendel plans to reach this level through
double-digit organic growth of its activities, supplemented by
external growth in new asset classes.
Wendel's new business model is designed to
enable the development, over time, of a value-creation platform
with the potential to generate operational synergies.
A European private equity
leader
Founded in 1989, IK is one of Europe's leading
private equity firms, with teams across seven of Northern European
countries focusing on the mid-market segment. The Company invests
in the Business Services, Healthcare, Consumer and Industrials
sectors in Benelux, DACH, France, Nordics and the UK.
IK manages 11.84 billion euros of private assets
on behalf of third-party investors and since inception, has
invested in over 180 companies.
Laurent Mignon, Wendel Group CEO,
commented:"We are very proud to embark on this new
entrepreneurial stage in Wendel's development with the acquisition
of a high-quality company like IK, sharing the same values and
investment philosophy.
The partnership with IK is a major step in the
deployment of our new strategy announced in 2023. It will form the
foundation of the private asset management division we are
building.
Given its financial strength, Wendel has the
resources to support IK Partners' development over the long term,
and invest in its funds to gain access to the results of successful
value creation strategies implemented by its teams.
Executing this ambitious strategy will
accelerate Wendel's diversification, boost recurring cash flow
generation and enhance our attractiveness as an investor and listed
company.
We look forward to working with Christopher
Masek and his team, to ensure the success of this new partnership.
I would also like to thank the Wendel teams for their contribution
to this new milestone in our development. I am convinced that, in
the years to come, we will continue to find new opportunities for
external growth and direct investments which will create value for
Wendel's shareholders while preserving our company's strong
financial profile."
Christopher Masek, CEO of IK Partners,
commented:
"We are excited to partner with Wendel, whose
investment will support our existing strategies, while also
creating the opportunity for us to accelerate growth in other
areas. The envisaged partnership will allow our company to achieve
its three strategic objectives which are to: access significant
permanent capital; secure a long-term solution for our Partner
Group to grow; and maintain our autonomy and identity.
In an industry that is seeing significant
consolidation through partnerships similar to this, we believe that
this transaction sets the foundation for continued growth and
strengthening of the IK platform. It offers a unique and attractive
model that benefits our company, employees and investors for years
to come.
We look forward to working with Laurent and his
team in what we believe will be a fruitful partnership."
1 Excluding €16M of ticking fees and
interests.
2 Fee Related Earnings: earnings generated by
recurring fee revenues (mainly management fees). It excludes
earnings generated by more volatile performance-related revenues
such as performance fees or carried interest of investment
income.
3 And no later than 2034 if the deferral option
is exercised.
4 Including co-invest direct investments from
significant LPs, and from third-party co-control co-investment.
Agenda
Thursday, May 16, 2024
Annual General Meeting
Wednesday, July 31, 2024
H1 2024 results - Publication
of NAV as of June 30, 2024, and condensed Half-Year consolidated
financial statements (post-market release)
Thursday, October 24, 2024
Q3 2024 Trading update -
Publication of NAV as of September 30, 2024 (post-market
release)
Thursday, December 5, 2024
2024 Investor Day
About Wendel
Wendel is one of Europe’s leading listed
investment firms. The Group invests in Europe and North America in
companies which are leaders in their field, such as ACAMS, Bureau
Veritas, Crisis Prevention Institute, IHS Towers, Scalian, Stahl
and Tarkett. Wendel often plays an active role as a controlling or
significant shareholder in its portfolio companies. Wendel seeks to
implement long-term development strategies, which involve boosting
growth and margins of companies so as to enhance their leading
market positions. With Wendel Growth, Wendel also invests via funds
or directly in innovative, high-growth companies. In 2023, Wendel
initiated a strategic shift into third-party asset management of
private assets, alongside its historical principal investment
activities.
Wendel is listed on Eurolist by Euronext
Paris.
Standard & Poor’s ratings: Long-term: BBB,
stable outlook – Short-term: A-2 since January 25, 2019
Moody’s ratings: Long-term: Baa2, stable outlook
since September 5, 2018
Wendel is the Founding Sponsor of Centre
Pompidou-Metz. In recognition of its long-term patronage of the
arts, Wendel received the distinction of “Grand Mécène de la
Culture” in 2012.
For more information: wendelgroup.com
Follow us on LinkedIn @Wendel
Press
contacts |
Analyst and investor contacts |
Christine Anglade: +
33 1 42 85 63 24 |
Olivier Allot: +33 1 42 85 63 73 |
c.anglade@wendelgroup.com |
o.allot@wendelgroup.com |
|
|
Caroline Decaux: +33 1
42 85 91 27 |
Lucile Roch: +33 1 42 85 63 72 |
c.decaux@wendelgroup.com |
l.roch@wendelgroup.com |
|
|
Primatice |
|
Olivier Labesse: +33 6
79 11 49 71 |
|
olivierlabesse@primatice.com |
|
Hugues Schmitt: +33 6
71 99 74 58 |
|
huguesschmitt@primatice.com |
|
|
|
Kekst CNC |
|
Todd Fogarty: +1 212
521 4854 |
|
todd.fogarty@kekstcnc.com |
|
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