Salcef to grow after the acquisition of Francesco Ventura Costruzioni Ferroviarie. Analysts are positive

December 23, 2022

Abstract : The closing of the transaction is expected in the coming weeks, making the enterprise value reaching approximately 70 million. The acquisition is expected to increase the Group’s capacity in a market that will be supported by significant investment in the upcoming years

MILAN, Dec 19 (Class Editori) — Salcef Group SpA is shopping in Italy. In fact, the industrial Group has reached an agreement with the Ventura family to acquire the entire share capital of Francesco Ventura Costruzioni Ferroviarie Srl (FVCF), a Rome-based company which has been operating for more than 50 years in the railway construction and maintenance sectors, with an important presence in Southern Italy.

Salcef will close the acquisition in the coming weeks

The closing of the operation is expected in the coming weeks and, according to the company’s announcement, will be linked to the fulfillment of some additional suspensive conditions typical for this type of transaction, including the finalization of the separation of assets not directly related to the “railway armament branch”, which will remain in control of the transferors.

The enterprise value of about 70 million euros will also include FVCF’s financial exposures. Valeriano Salciccia, Salcef’s current CEO, also stressed that “the transaction fits perfectly into the company’s growth strategy and allows it to increase its presence in the core business of railroad armament and, at the same time, to have at its disposal machinery and qualified human resources, which are essential in this historical phase of huge investments in the sector”.

Salcef rises in the Stock Exchange and analysts appreciate the M&A

Salcef’s stock runs driven by the news (+1.75% at 17.44 euros for a capitalization of 1 billion), while FTSE MIB is a little more than positive. Intesa Sanpaolo analysts (buy rating and 24.5 euros target price on the stock) rate the acquisition positively, which “should increase the Group’s capacity in a market that will be supported by significant investments in the upcoming years,” namely the Italian one.

From a preliminary simulation, assuming an EBITDA margin of 20% in 2023, with revenues around 65 million euros, the EV-to-EBITDA multiple would be around 5.4 times according to analysts. A “relatively attractive multiple given Salcef’s multiple at 10.3 times in 2022 and 8.7 times in 2023,” the analysts pointed out.

(Source:Class Editori)

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