Service provider Altrad is looking to acquireEngie‘s industrial maintenance subsidiary, Endel.
The deal is expected to close by early 2022, after consultation with employee representative bodies and subject to regulatory approval.
Altrad diversifies
Altrad wants to strengthen and diversify its industrial offering in engineering and mechanics.
The acquisition ofEndel, active in nuclear power plants, petrochemicals, steelmaking and pharmaceuticals, could fulfil such ambitions.
In addition, Endel has a number of strengths: 5,200 employees and sales of €550 million by 2020.
“Altrad wishes to participate in Endel’s development and give all its teams the means to implement a structured and viable strategic plan. We have every confidence in Endel’s ability to develop and prosper”, emphasizes Mohed Altrad, founder and Chairman of Altrad.
A free transaction?
For energy giant Engie, the challenge lies elsewhere: to refocus investment on renewable energies and infrastructure.
Nevertheless, the group is keen to find a solid shareholder for Endel, capable of supporting the subsidiary’s industrial and social development.
Although no amount has yet been announced, the press is quoting a figure of almost zero for the deal, given the subsidiary’s difficulties.
In addition, the transaction is expected to be completed by early 2022, after consultation with employee representative bodies and subject to regulatory approval.
However, the proposed sale does not include the subsidiaries Pierre Guerin (food processing and pharmaceuticals), CNN MCO (ship maintenance) and Era (engineering).
