French scaffolding and equipment giant Altrad has made a £332m offer for industrial services specialist Cape.
The Cape board this morning said it would recommended that the offer be accepted by its shareholders. If it is successful, the deal will create one of the world’s largest industrial services firms.
Under the terms of the deal, Cape shareholders would receive 265p per share in cash, representing a premium of 46 per cent on the stock’s closing price of 181p on Thursday 6 July.
Altrad, which has a global turnover of about €2.3bn (£2bn), already owns a number of UK access, hire and scaffolding businesses, including NSG and Trad Group.
In 2016, Cape employed around 16,000 people working in 23 countries and reported revenue of £863.5m.
However, the firm reported a pre-tax loss of £71.7m for the year to 31 December 2016, .
Altrad Group chairman Mohed Altrad said: “We are very pleased to announce this proposed acquisition that is fully aligned with our growth strategy, to become the world leader in the provision of industrial services, scaffolding solutions and light construction equipment in the civil and industrial sectors.
“Altrad and Cape have strong complementary in geographic and product mix enabling the creation of a multi-disciplinary industrial services leader in key markets around the world.
“We believe the proposed acquisition can bring together our respective strengths to create a powerful global platform with a strong competitive edge to meet customers’ requirements.”
Cape chairman Tim Eggar added: “Under the leadership of its current management team, Cape has made significant strategic, operational and financial progress, and despite a more challenging year anticipated in 2018, the Cape board has confidence in Cape’s future prospects.
“However, we believe that the offer from Altrad represents fair and reasonable value in cash today for Cape shareholders recognising Cape’s prospects and growth potential.
”Taking these factors into consideration, the Cape board unanimously intends to recommend that Cape shareholders accept the offer.”
Nexus plans IPO
Nexus Infrastructure will raise £35m through an initial public offering.
The IPO will take place on Tuesday 11 July and values the specialist services provider at more than £70m.
Nexus is made up of two companies: Tamdown, which provides specialist infrastructure services including earthworks and substructures; and TriConnex, which designs, installs and connects gas, fibre, electricity and water networks.
The group has grown revenue from £60.5m in 2012 to £135.7m last year.
It had underlying pre-tax profit of £11m last year, accounting for a one-off provision of £1.3m on two 2015 contracts.
The group’s clients include Berkeley, Canary Wharf Group and Persimmon.
Nexus chief executive Mike Morris said: “This is an important milestone for the group and the start of our life as a publicly quoted company. We have two well-established businesses, with client and operational teams in place to deliver on our strategic goals and growth strategy.”