Groupe Gorgé announces its plan to reorganize the share capital of its Fire Protection France business

  • Date: 25 Jun 2019

Groupe Gorgé’s Fire Protection France business comprises the subsidiaries CLF-Satrem, SVF and Amopsi. These three companies specialize in active and passive fire protection for the industrial and tertiary sectors through the engineering, installation and maintenance of sprinkler systems and glass fireproofed partition panels. In 2018, these subsidiaries generated revenue of around €38 million, with 238 employees.

These profitable businesses have seen a decline in performance over the last few years. In order to enhance their development, a leverage operation is planned in which the management team would hold up to 30% of the share capital in the Fire Protection France business. Groupe Gorgé would remain the reference shareholder with 70% of the share capital in this business, which would continue to be consolidated in the Group’s financial statements.

The Fire Protection France business offers a high level of recurring revenue in a booming market. With this operation, the Group aims to substantially improve the performance of this business in order to establish a leadership position in the French market, by reinforcing the management team’s involvement and by developing synergies between its different business lines.

This partial disposal of the share capital would generate available cash of €7 million for the Group and would have no impact on the income statement, excluding net income-group share. This operation is conditional on consultation of the companies’ employees’ representative bodies.

The strong growth in 3D printing activities and the major success awarded in robotics, with a contract of around €450 million in naval robotics, lead the Group to strengthen its efforts on developing high-tech businesses.

This operation combined with the project to sell Cimlec Group announced on June 20, 2019 (see the press release) will generate significant financial resources that could be allocated to developing new technological activities. Alternatively, they could also be used to strengthen the control of the robotics or 3D printing activities depending on market conditions.