• Approval by the Board of Directors of a c.€193M rights issue fully backstopped by Searchlight Capital Partners, as a part of a comprehensive c. €323M recapitalisation package
  • Changes of governance at Latécoère with Thierry Mootz being promoted CEO and Greg Huttner being appointed as Deputy CEO, both effective August 2, 2021
  • Potential1 acquisition of Technical Airborne Components, a leading designer and manufacturer of rods and struts for the aerospace industry

Regulatory News:

Latécoère (Paris:LAT), a tier 1 partner to major international aircraft manufacturers, today announced that its Board of Directors held yesterday under the Chairmanship of Pierre Gadonneix, has appointed Thierry Mootz as Chief Executive Officer of Latécoère SA with effect on August 2, 2021 in replacement of Philip Swash. Thierry Mootz will also remain General Manager of the Interconnection Systems division. The Board has also approved the principle of a capital increase for c.€193M with shareholders’ preferential subscription rights fully underwritten by its reference shareholder Searchlight Capital Partners to enable organic and inorganic growth.

Approval by the Board of Directors of a c.€193M rights issue

Latécoère launches a comprehensive c.€323M recapitalisation plan to strengthen its balance sheet, further invest in the competitiveness and competencies of its global footprint and continue to actively pursue M&A opportunities following the successful acquisition of Bombardier EWIS in Mexico as well as the potential acquisition of Technical Airborne Systems (TAC) announced today.

As part of the transaction, the Board of Directors of Latécoère has approved the principle of a c.€193M rights issue which is fully backstopped by its anchor shareholder Searchlight Capital Partners.

The terms and conditions of the rights issue will be described in a specific press release to be published once the AMF has approved the prospectus; this press release is expected to be published in the coming days.

Strategy and changes of Governance at Latécoère

COVID-19 has had a highly disruptive impact on the aerospace sector. The Company immediately embarked upon an extensive program to secure, reset and position Latécoère to grow into a larger, more competitive and resilient global aerospace leader.

The group has completed a number of significant steps to survive the crisis and prepares for growth, including the implementation of rigorous safety standards to protect employees and the adaptation of its workforce and industrial capacities to the new market environment. This required extensive and difficult re-structuring initiatives in order to reset the Company for the forthcoming years ahead. A lower fixed and variable costs structure will enable Latécoère to emerge from the crisis stronger and more competitive.

A new strategy and five-year business plan have been approved by the Board of Directors, setting a clear course for the next chapter for Latécoère. The core pillars of the strategy are:

  • Operational Excellence and Cost Competiveness
  • Organic Growth in traditional markets and adjacent Interconnection Systems markets
  • Focused innovation in Aerostructures and Interconnection Systems to improve competitiveness and position Latécoère for the next generation of aircraft
  • External Growth (M&A): a key driver of future growth for the business as evidenced by the acquisition of Bombardier EWIS in Mexico (closed February 2021) and the potential acquisition of Technical Airborne Systems in Belgium that was announced today
  • Ongoing development of the Latécoère people

The Board of Directors of Latécoère decided yesterday the following changes of governance of the Group:

  • Thierry Mootz, current Deputy CEO, will be promoted CEO of Latécoère, effective August 2, 2021.
  • Grégoire Huttner will be appointed Deputy CEO effective August 2, 2021 and will continue to serve as the General Manager of the Aerostructures Division.

The composition of the Board of Directors will remain unchanged, with Philip Swash to continue as director of Latécoère.

In addition, Christopher Seherr-Thoss has been appointed as Director of M&A, to lead Latécoère’s ambitious inorganic growth strategy.

Commenting on today’s communication, Philip Swash, Chief Executive Officer, said: “It has been a great honor to lead the Latécoère team and re-engage with global Aerospace customers and suppliers. I would like to thank all stakeholders and shareholders for their trust and support. The Company now has the plan and the financing to develop into a truly global leader and I feel that it is now an appropriate time for me to return to a non-executive board position where I shall continue to support Thierry Mootz and the Latécoère team.”

Pierre Gadonneix, Chairman of the Latécoère Board of Directors said: “I would like to thank Philip Swash for agreeing to lead Latécoère at the beginning of a major crisis. He was able to lead the company through this period and ensure a transformation plan that today puts Latécoère on a sound basis to face the future with confidence. I am pleased that he stays involved with the Company as a non-executive director at our Board of Directors. I believe Thierry Mootz is the right man to implement this transformation since he has been with the Company for over 6 years and Latécoère can approach the next chapter with confidence and ambition.”

Thierry Mootz, Deputy Chief Executive Officer said: “I am honored and excited to take the leadership of Latécoère, which is a strong contributor to the Aerospace market in France. Thanks to the job done by Latécoère team, the Company has successfully navigated through the crisis, will emerge stronger from it and is now ready for growth. The recapitalization of the Company will allow us to execute our plan, deliver high performance to our customers and finance growth.”

Potential acquisition of Technical Airborne Components (TAC)

Subject to completion of the information and consultation process with the employee representative bodies of the Group, Latécoère envisages to acquire Technical Airborne Components (TAC), a leading designer and manufacturer of rods and struts for the aerospace industry, for approximately € 30 million from Searchlight Capital Partners2.

Lastly, Latécoère adds that it is actively looking at other external growth opportunities, particularly in North America. Those discussions are at a preliminary stage and would require a maximum investment of around €100 million should these opportunities be concluded.

Important Information

This press release does not constitute an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of ordinary shares in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The distribution of this press release may, in certain jurisdictions, be restricted by local legislations. Persons into whose possession this press release comes are required to inform themselves about and to observe any such potential local restrictions.

This press release is not a prospectus within the meaning of Regulation (UE) 2017/1129 of the European Parliament and of the Council of 14 June 2017 as amended (the “Prospectus Regulation”) and as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (the “UK Prospectus Regulation”). With respect to the member States of the European Economic Area and the United Kingdom (each a “Relevant State”), securities may not be offered or sold absent the publication of a prospectus in any Relevant State or an exemption from such publication under the Prospectus Regulation or the UK Prospectus Regulation.

The distribution of this press release has not been made, and has not been approved, by an “authorised person” within the meaning of Article 21(1) of the Financial Services and Markets Act 2000. As a consequence, this press release is only being distributed to, and is only directed at, persons in the United Kingdom that (i) are “investment professionals” falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), (ii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations, etc.”) of the Order, or (iii) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of Article 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “Relevant Persons”). Any investment or investment activity to which this press release relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

This press release does not constitute or form part of any offer of securities for sale or a solicitation of an offer to purchase or to subscribe securities in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any State or other jurisdiction of the United States, and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an exemption from such registration. Latécoère does not intend to register all or any portion of its securities in the United States under the Securities Act or to conduct a public offering of the Securities in the United States.

About Latécoère

As a "Tier 1" international partner of the world's major aircraft manufacturers (Airbus, Boeing, Bombardier, Dassault, Embraer and Mitsubishi Aircraft), Latécoère is active in all segments of the aeronautics industry (commercial, regional, business and military aircraft), in two areas of activity:

  • Aerostructures (55% of turnover): fuselage sections and doors,
  • Interconnection Systems (45% of turnover): wiring, electrical furniture and on-board equipment.

As of December 31, 2020, the Group employed 4,172 people in 13 different countries. Latécoère, a French limited company capitalised at € 23,704,629.50 divided into 94,818,518 shares with a par value of €0.25, is listed on Euronext Paris - Compartment B, ISIN Codes: FR0000032278 - Reuters: LAEP.PA - Bloomberg: LAT.FP.

1 Implementation of this acquisition is subject to completion of the information and consultation process with the employee representative bodies of the Group. 2 Latécoère has a call option to acquire Technical Airborne Component for a transfer price of €35.4 million from Searchlight Capital Partners, or approximately €30 million net of cash on balance sheet and including deal related expenses.

Taddeo Antoine Denry / Investor Relations +33 (0)6 18 07 83 27

Marie Gesquière / Media Relations +33 (0)6 26 48 97 98 teamlatecoere@taddeo.fr

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