Vantiva Announces Plan to Sell its Supply Chain Solutions Division
to Funds Managed by Variant Equity
Press Release
Vantiva Announces Plan to Sell its Supply
Chain Solutions Division
to Funds Managed by Variant Equity
The potential sale further enables both
Connected Home and Supply Chain Solutions (SCS) to focus on their
respective core businesses
Paris, France – December 19, 2024 – Vantiva (Euronext
Paris: VANTI), a global technology leader enabling Network
Service Providers to connect consumers worldwide, announces its
plans to sell its Supply Chain Solutions (SCS) division to funds
managed by private equity firm, Variant Equity, by entering into a
Put Option Agreement.
After a competitive and impartial selection process, the Board
of Directors has chosen Variant Equity as the best partner to
support SCS’s future and ensure alignment with the company’s
corporate interests.
The transaction is based on an SCS valuation of $40 million,
subject to the usual adjustments, including a working capital
adjustment at closing.
In accordance with IFRS 5, SCS will be classified as
discontinued operations in Vantiva’s Fiscal Year 2024 accounts.
Vantiva will also record a necessary asset impairment, and its
valuation process is currently underway.
The group's 2024 guidance remains unchanged. However, for
ongoing activities, they are as follows: EBITDA exceeding €100
million and a positive free cash flow after financial expenses and
taxes and before restructuring and integration costs related to the
CommScope Home Networks acquisition.
“We are very pleased with the prospect of selling SCS to
Variant. Given their focus on corporate divestitures and previous
industry experience, we believe they are the best-suited partner
for moving the business forward,” said Tim O’Loughlin, CEO of
Vantiva, “I am excited about SCS’s future with Variant.”
Farhaad Wadia, Managing Partner of Variant Equity, also
expressed enthusiasm for the prospect of SCS joining Variant as a
stand-alone portfolio company, stating, “Over the years, SCS has
developed valuable customer relationships, a comprehensive set of
capabilities and a robust global infrastructure. We look forward to
partnering with the SCS team to unlock continued growth and
capitalize on the business that has been built under Vantiva’s
ownership.”
Rob Wipper, President of Supply Chain Solutions, added, “We’re
excited about the prospect of joining the Variant portfolio. As a
stand-alone company, SCS can accelerate diversification strategies,
including expanding our precision manufacturing and third-party
logistics services, while maintaining our focus on the production
and distribution of physical media content.”
The pending sale of SCS demonstrates Vantiva’s commitment to
innovation and is the next step in implementing a more customer
centric strategy. Whereas earlier acquisitions, such as the January
2024 acquisition of Home Networks, strengthened Vantiva’s portfolio
of assets and expertise, the pending sale of SCS will now allow
Vantiva to concentrate on optimizing those assets and expertise to
deliver cutting-edge solutions to customers in the video,
broadband, and related technology spaces.
The transaction, in which Moelis & Company LLC is serving as
exclusive financial advisor to Vantiva, is contingent on Vantiva’s
exercise of the Put Option to enter into a binding Equity Purchase
Agreement, pending the completion of consultation processes with
Vantiva’s Works Council, along with other typical and customary
conditions. Both parties are confident of a positive outcome in the
coming weeks.
*****
Warning: Forward Looking Statements
This press release contains certain statements that constitute
"forward-looking statements", including but not limited to
statements that are predictions of or indicate future events,
trends, plans or objectives, based on certain assumptions or which
do not directly relate to historical or current facts. Such
forward-looking statements are based on management's current
expectations and beliefs and are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the future results expressed, forecasted, or implied by such
forward-looking statements. For a more complete list and
description of such risks and uncertainties, refer to Vantiva’s
filings with the French Autorité des marchés financiers (AMF). The
Universal Registration Document (Document d’enregistrement
universel) for fiscal year 2023 was filed with the Autorité des
marchés financiers on April 30, 2024, under no. D.24-0375.
*****
About Vantiva
Pushing the Edge
Vantiva shares are admitted to trading on the regulated market
of Euronext Paris (VANTI).
Vantiva, formerly known as Technicolor, is headquartered in
Paris, France. It is an independent company which is a global
technology leader in designing, developing and supplying innovative
products and solutions that connect consumers around the world to
the content and services they love – whether at home, at work or in
other smart spaces. Vantiva has also earned a solid reputation for
optimizing supply chain performance by leveraging its decades-long
expertise in high-precision manufacturing, logistics, fulfillment
and distribution. With operations throughout the Americas, Asia
Pacific and EMEA, Vantiva is recognized as a strategic partner by
leading firms across various vertical industries, including network
service providers, software companies and video game creators for
over 25 years. The group’s relationships with the film and
entertainment industry goes back over 100 years by providing
end-to-end solutions for its clients.
Following the acquisition of CommScope’s Home Networks in
January 2024, Vantiva continues its 130-year legacy as a global
leader in the connected home market.
Vantiva is committed to the highest standards of corporate
social responsibility and sustainability across all aspects of
their operations.
For more information, please visit vantiva.com and follow
Vantiva on LinkedIn and X (Twitter).
Contacts
Vantiva Press
Relations Image
7 for Vantiva
press.relations@vantiva.com vantiva.press@image7.fr
Vantiva Investor Relations
investor.relations@vantiva.com
About Variant Equity
Founded in 2017, Variant Equity is a Los Angeles based private
equity firm that makes control investments in corporate divestiture
and similarly operationally intensive transactions across a wide
range of industries including transportation and logistics,
technology and business services. The firm’s investment approach
focuses on businesses it believes are best suited to reach their
full potential as stand-alone enterprises through the deployment of
Variant’s operations and technology resources. For more
information, visit variantequity.com.
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