- 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210712005863/en/
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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