Other than stock options and warrants for its staff and management, this is Eurofins\u2019 first equity issuance since
\nOctober 2000, and represents a slight dilution of under 3.8% for its existing shareholders. Proceeds of the
\ntransaction will be used to optimize the Group\u2019s capital structure, thereby increasing Eurofins\u2019 ability to respond
\nswiftly to strategic, value-enhancing opportunities, with the objective to create higher earnings per share (EPS) than
\nthe dilution impact from the new issuance. The transaction should increase Eurofins\u2019 strategic options going
\nforward, as well as the Group\u2019s ability to generate value for its shareholders. <\/p>\n
As communicated several times previously1
\n, even without this additional equity, as can be judged based on current
\ntrends, the Group management believes that Eurofins should be able to continue generating at least 5% organic
\ngrowth and acquire about EUR 200m of external revenues per year to progress towards its objective of doubling in
\nsize again to reach EUR 4bn of revenues and EUR 800m of adjusted EBITDA by 2020. Indeed, given its liquidity
\nand the strength in current operating trends (continuing in line with the ones observed in the first quarter of 2016)2
\n,
\nEurofins\u2019 management does not believe it required additional funding to execute on this mid-term plan. However,
\nthe management also believes that the further optimization of its balance sheet and overall capital structure
\nresulting from the CDPQ investment should enable the Group to respond swiftly to compelling larger opportunities if,
\nand when they materialize, which could significantly accelerate the achievement of its mid-term objectives. <\/p>\n
One of Eurofins\u2019 stated objectives for 2016, rather than hoarding cash on its balance sheet, was to work towards a
\nmore flexible access to funding to be able to respond to large M&A opportunities should they arise3
\n. In addition to
\nthis EUR 200m investment, CDPQ has indicated a strong interest in supporting further investments by Eurofins.
\nSeveral current large investors of Eurofins have also indicated strong interest in participating in further equity raises
\nshould they become required for one or several larger transactions. In this context, an investment of 606,061
\nshares from an investor committed to further capital deployment appeared preferable to issuing 1 million shares
\nimmediately, as considered in December 2015. <\/p>\n
In addition, over the last few quarters, Eurofins has also secured further flexible bank financing that it only needs to
\ndraw as required. Over the next few months, Eurofins also intends to repay and refinance its older Schuldschein
\nand OBSAAR bonds (of which EUR 170m and EUR 59m respectively remain due as of end June 2016) with
\ninstruments with longer maturities.<\/p>\n
CDPQ, one of the largest institutional fund managers in North America, has a solid track record of long-term
\ninvestments in companies that are leaders in their fields of activities, and that have proven ability to generate
\nsustainable shareholder returns. As a manager of pension and insurance funds, CDPQ has a long investment
\nhorizon, providing the companies it invests in stable financial support over time. <\/p>\n
Comment from Dr. Gilles Martin, Eurofins CEO: “This transaction provides Eurofins with the ability to potentially Comment from Roland Lescure, Executive Vice-President and Chief Investment Officer at CDPQ: \u201cWith a solid, Eurofins Scientific (EUFI.PA), a world leader in bioanalytical testing, announces that it has privately placed 606,061 newly-issued shares with La Caisse de d\u00e9p\u00f4t et placement du Qu\u00e9bec (\u201cCDPQ\u201d), one of Canada\u2019s largest institutional fund managers, at a subscription price of EUR 330 per share, raising EUR 200m of additional cash for the Group. <\/p>\n","protected":false},"author":20,"featured_media":53888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1601],"tags":[1671,1888,1437,2082,2035,1702],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/53890"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=53890"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/53890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/53888"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=53890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=53890"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=53890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\naccelerate the achievement of its mid-term plan, should the opportunity arise, and create significant incremental
\nshareholder value with limited dilution. CDPQ\u2019s approach of focusing on long-term financial returns on its investment and deploying long-term partnerships with the companies it invests in, which may include supporting
\nlarger acquisitions, is entirely consistent with Eurofins\u2019 strategy of deploying capital for long-term value creation and
\nsecuring flexibility in its future funding. We look forward to a mutually beneficial partnership with CDPQ.<\/em>\u201d <\/p>\n
\nvisionary management team, Eurofins has successfully established itself as a world leader in the cutting-edge
\nmarket segment of bio-analysis testing. Under the leadership of Stephane Etroy, Head of Europe Private Equity,
\nCDPQ will support Eurofins\u2019 management team as it pursues its international growth plans and puts innovation
\nforward to develop the company over the long term.<\/em>“<\/p>\n","protected":false},"excerpt":{"rendered":"