Report
Arnaud Goossens
EUR 143.92 For Business Accounts Only

Leap into Scandinavia

​Sioen has recently announced two acquisitions, both based in Finland and included in Sioen’s Apparel division (30% of group sales in 2015). The acquisition rationale is to add new high-end Apparel activities in consolidating markets, with a focus on public tendering, while opening a second “home market” in Scandinavia and diluting exposure to more cyclical activities such as truck-trailer tarpaulins (now 14% of group sales). Sioen has acquired €33m in sales (9% of group sales) with an EBITDA margin of 15% for an EV/EBITDA multiple of 9.3x. The acquisitions are 4.5% EPS accretive and provide a after-tax cash return in excess of WACC as from year-2 (2018). More details on the profile and impact are contained in the report.

Underlying
Sioen Industries N.V.

Sioen Industries. Sioen Industries NV is a Belgium-based company with a portfolio of products and activities, such as spinning, weaving and coating, manufacturing of garments, production of chemicals and processing of technical textiles. The Company has three divisions: the Coating division, engaged in the production of a number of technical textiles, coated with various polymers and marketed in different markets; The Apparel division, engaged in the production of technical protective clothing active in a number of sectors, such as industry, leisure wear and specialized markets, as well as the Chemicals division engaged in the processing of basic raw materials into technical semi-finished products, such as pigment pastes, decorative inks, varnishes and inks for digital printing for a number of markets. It operates through Ursuit Group and Verseidag Ballistic Protection OY, UV Curable systems BVBA, James Dewhurst Group and Verseidag Ballistic Protection Oy.

Provider
Merodis Equity Research
Merodis Equity Research

Merodis Equity Research offers bespoke equity research backed by our extensive experience in equity markets at top-tier investment banks in London, Paris and Brussels serving institutional investors worldwide. Analysts at Merodis Equity Research have achieved #1 Extel rankings in the past for Benelux equity research.

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Analysts
Arnaud Goossens

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