- Capital increase by an initial amount of €20.0 million
- Indicative price range: between €15.95 and €21.55 per share
- Placement period: 22 September 2016 to 5 October 2016
- Raising capital to support the Group's development plans, in its aspiration to join the leaders on each continent in the mid-run by consolidating the sports and leisure equipment market and expanding the Group's footprint in “sportainment”
- Eligible for investment in PEA and PEA-PME tax-efficient equity savings plans.
ABEO, a designer of sports and leisure equipment, announces the launch of its initial public offering (IPO) for the listing of its shares on the Euronext Paris regulated market (compartment C). On 21 September 2016, the French Financial Markets Authority (AMF) approved the prospectus for ABEO's initial public offering with visa No. 16-440. This document comprises the Document de base filed on 14 June 2016 under number I.16-055, the offering circular and a summary of the prospectus.
To mark the occasion, Olivier Estèves, ABEO's Chief Executive Officer, and Jacques Janssen, Managing Director, made the following comments: "With its development model combining organic and external growth over the last 14 years, ABEO has established itself as a leading player in the sports and leisure equipment market. The initial public offering is the logical extension of our record of growth, and this move will provide us with the resources to consolidate our leadership position and accelerate our international growth strategy. “
ABEO: A success story on the sports and leisure equipment market, estimated to be worth €5 billion
- In 2002 Olivier Estèves, ABEO's current CEO, launched a strategy to diversify the family business. Thanks to the acquisition and development of strong brands, in the space of 14 years the Group has become a major operator in the professional sports and leisure equipment market. The world market is estimated at around €5 billion and is growing steadily.
- The acquisition in late 2014 of the Dutch family business Janssen-Fritsen, one of the Group's main competitors in the gymnastics equipment market, marked the passing of a major milestone by giving ABEO new critical mass with which to drive its international growth. The Group currently markets its products in around 100 countries. As at 31 March 2016, ABEO employed around 1,000 people, 600 of whom were based abroad, while 66% of the year's sales were generated outside France.
- The Group has displayed strong growth momentum, achieving average annual revenue growth of 28% since 1st April 2012, including 7% like-for-like growth, and posted revenue of €148 million for the financial year ended 31 March 2016. ABEO's vertical integration enabled it to generate a high gross margin of 57% and an operating margin (EBITDA/Revenues) of 8.4% for the same financial year.
ABEO: a unique global player marketing specialised brands that partner sports federations and feature at major sporting events
- ABEO designs, manufactures and distributes equipment for sports and leisure centres. ABEO is the only global operator to offer a comprehensive range covering the sports, climbing and locker-room sectors, including
- The Group currently assists a wide range of B2B customers (18,000 active customers during the 2015-2016 financial year) with the implementation of their sports projects. Its customer base includes specialised sports halls and clubs, leisure centres and parks, schools, local authorities, construction professionals, etc.
- One of the Group's key differentiating advantages is the fact that it owns a portfolio of market-leading brands in France and worldwide, including Gymnova and Spieth, flagship brands in the gymnastics sector, Janssen-Fritsen, which specialises in physical education, Schelde Sports, a team sports specialist, Entre-Prises, inventor of the artificial climbing wall, and France Equipement, a household name in the locker room fittings market.
- Thanks to the partnerships formed with sports federations and the frequent appearance of the brands at international competitions with a high media profile opening the doors to market entry, the Group's products enjoy a strong reputation that influences the decisions of local prescribers. Since 1956, the Group has taken part in the Olympic Games 14 times via its brands. It provided the gymnastics equipment, basketball backstops and competition stages in Rio this summer. In June 2016, ABEO renewed until 2020 a contract for the exclusive supply of gymnastics competition equipment to British Gymnastics, the British sport federation, and with Germany's two gymnastics federations (Deutscher Turnerbund and Deutsche Turnliga).
ABEO: Aims to double its revenue to over €300 million by 2020 and improve its EBITDA margin
- ABEO has become a natural focal point of consolidation in a highly fragmented market made up of specialised local operators. The Group aims to join the market leaders on every continent by 2020.
- It benefits from a broad and diversified customer base and from the sustainable growth prospects of its markets due to the increasingly important role assigned to sport in Western and emerging economies. ABEO is planning a new phase of accelerated growth while improving its operating profitability.
- Accordingly, for the financial year ended 31 March 2020, the Group is aiming to achieve revenue of over €300 million, double the figure for 2016, including an organic growth target of over 7% per year and an external growth target of over 12% per year.
- This objective is based on the Group's historic development model combining organic growth with targeted acquisitions in order to add to the brand portfolio, penetrate new markets more effectively and consolidate the more mature markets. The Group is currently involved in exclusive negotiations regarding three acquisitions in the Sports division, including two in Europe and one in Asia, representing potential additional revenue of around €20 million in total. These acquisitions may be finalised by the end of 2016, subject to the findings of ongoing due diligence procedures.
ABEO: Strong start to the 2016/2017 financial year
- In line with its objectives, ABEO achieved an excellent sales performance in Q1 2016/2017: revenue for the first quarter amounted to €40.5 million, representing organic growth of 15.4%. Business was particularly strong in the Sports sector which posted double digit growth, whilst momentum was maintained in the Climbing and Locker Room divisions. Furthermore, at the end of July 2016 the Group had a healthy backlog of firm orders to be invoiced in the 2016/2017 financial year, confirming the growth strategy implemented by the Group.
ABEO: Raising capital to consolidate the Group's position as a leading player and expand its footprint in “sportainment”.
- The success of this strategy will rely on three strong growth drivers, namely international expansion, capitalising on the brands and strengthening the Group's presence in “sportainment” (sports and entertainment) and services.
- With the initial public offering, ABEO is looking to accelerate the unfolding of its international growth strategy. The capital raised will finance the consolidation of the market and give ABEO the means with which to take advantage of external growth opportunities.
Availability of the prospectus
Copies of the prospectus, approved on 21 September 2016 under visa number 16-440 by the French Financial Markets Authority (AMF), comprising the Document de base filed on 14 June 2016 under number I.16-055, together with an offering circular and prospectus summary, are available free of charge on request from ABEO or may be downloaded from the ABEO (www.abeo-bourse.com) and AMF (www.amf-france.org) websites.
The reader's attention is drawn to Chapter 4 “Risk factors” of the Document de base filed with the AMF under number I.16-055, and to section 2, “Risk factors entailed in the offer”, in the offering circular approved on 21 September 2016 under number 16-440.
- Share codes
- Share capital before the IPO
Société anonyme (French Public Limited Company) with registered capital of €4,008,738, divided into 5,344,984 shares.
- Indicative price range
Between €15.95 and €21.55 per share on offer.
- Number of shares in the offer
1,066,666 new shares to be issued under a capital increase in cash; this may be raised to a maximum of 1,317,864 new shares in the event that the extension clause and greenshoe option are fully exercised.
- Gross amount of the transaction
Approximately €20.0 million on the basis of a price at the median value of the offer-price indicative range, namely €18.75, with a possible increase to around €24.7 million in the event of full exercise of the extension clause and greenshoe option, of which €1.7 million of shares transferred.
- Offer structure
It is intended to make the shares on offer available under a global offer (the “Offer”), comprising:
If permitted by demand expressed under the OPO, the number of new shares allocated in response to orders issued in connection with that offer shall be equal to at least 10% of the total number of shares on offer, excluding those issued in the event of the extension clause being exercised, and before the potential exercise of the greenshoe option.
- Company abstention commitment and shareholder lock-in provisions
|21 September 2016||AMF approval visa for the prospectus|
|22 September 2016||Subscription period opens|
|5 October 2016||Subscription period closes|
|6 October 2016||Setting of the offer price and possible exercise of the extension clause|
|10 October 2016||Settlement-delivery of the new shares|
|11 October 2016||Trading starts on the Euronext Paris regulated market|
|4 November 2016||Closing date for exercise of the greenshoe option|
Persons wishing to take part in the OPO must place their orders with an authorised financial intermediary in France by 5 October 2016 at 5:00 pm (Paris time) for subscriptions at branches and 8:00 pm (Paris time) for online subscriptions.
In order to be registered, orders issued under the global placement offer must be received by the Lead Managers and Joint Bookrunners by 5 October 2016 at 5:00 pm (Paris time).
Financial intermediaries and advisers
Read more at www.abeo-bourse.com
ABEO is a major player in the sports and entertainment (“sportainment”) market. The Group posted revenue of €148 million for the year ended 31 March 2016, 66% of which was generated outside France, and has around 1,000 employees.
ABEO is a designer, manufacturer and distributor of sports and leisure equipment. It also provides assistance in implementing projects to professional customers in the following sectors: specialised sports halls and clubs, leisure centres, education, local authorities, construction professionals, etc.
ABEO has a unique global offering, and operates in a wide variety of market segments, including gymnastics apparatus and landing mats, team sports equipment, physical education, climbing walls, leisure equipment and locker room fittings. The Group has a portfolio of strong brands which partner sports federations and are featured at major sporting events, including the Olympic Games.
For any questions relating to this press release or the ABEO Group, please contact:
ACTUS finance & communication
Investor relations – France Bentin [email protected] Tel: +33 (0)1 53 67 36 39
Press relations – Serena Boni [email protected] Tel: +33 (0)1 53 67 36 39
This press release and the information included herein do not constitute an offer of sale, purchase or subscription or the solicitation of a sale, purchase or subscription order for ABEO shares (the “Shares”) in any country. No shares have been or will be offered in France prior to obtaining the approval of the French Financial Markets Authority (the “AMF”) for a prospectus comprising the Base Document (“document de base”) that is the subject of this press release and an offering circular (securities note) to be submitted to the AMF at a later date.
The dissemination, publication or distribution of this release in certain countries may constitute a breach of applicable statutory and regulatory provisions. Accordingly, persons who are physically located in such countries in which this release is disseminated, distributed or published must enquire about and comply with such local restrictions.
This release amounts to a promotional communication and not a prospectus within the meaning of Directive 2003/71/EC issued by the European Parliament and Council on 4 November 2003, as amended, specifically by Directive 2010/73/EU issued by the European Parliament and Council on 24 November 2010, as amended and as transposed in each Member State of the European Economic Area (the “Prospectus Directive”).
In the case of European Economic Area Member States other than France (the “Member States”) which have transposed the Prospectus Directive, no action has been undertaken or will be undertaken in order to enable a public offering of securities that renders the publication of a prospectus mandatory in any of those Member States. As a result, the Shares may be offered in Member States solely: (a) to legal entities that are qualified investors as defined in the Prospectus Directive, or (b) in other cases that do not require ABEO to publish a prospectus under Article 3(2) of the Prospectus Directive.
This release has not been disseminated or approved by an “authorised person” within the meaning of Article 21(1) of the Financial Services and Markets Act 2000. As a result, this release is solely addressed and intended for (i) persons outside the United Kingdom, (ii) investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, (iii) the persons referred to in Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, or (iv) any other person to whom this release may be addressed in accordance with the law (the persons listed under points (i), (ii), (iii) and (iv) are jointly designated as the “Eligible Persons”). The securities are only intended for Eligible Persons and any invitation, offer or agreement relating to the subscription, purchase or acquisition of the securities can only be addressed to or entered into with Eligible Persons. Any person other than an Eligible Person must refrain from using or relying on this release and the information that it contains. This release does not amount to a prospectus approved by the Financial Services Authority or by any other regulatory authority in the United Kingdom within the meaning of Section 85 of the Financial Services and Markets Act 2000.
This release does not constitute an offer of transferable securities or any kind of solicitation to purchase or subscribe to transferable securities or to any solicitation to sell transferable securities in the United States. The transferable securities that are the subject of this release have not been and will not be registered within the meaning of the US Securities Act 1933 as amended (the “US Securities Act”) and cannot be offered or sold in the United States without registration, or an exemption from the registration requirement, pursuant to the US Securities Act. The Shares have not been and will not be registered under the US Securities Act and ABEO does not intend to perform any public offering of its shares in United States.