Intermoney| Vidrala (Hold, PO 94) yesterday informed the National Securities Market Commission (CNMV) that it has reached an agreement with Veralia for the sale of its Italian subsidiary for €230mn (7x EBITDA) of which 100% would be cash for Vidrala, obtaining capital gains of €100mn.
Vidrala Italia achieved sales of €131mn in 2023 (8% of Vidrala’s total) and EBITDA of €33mn (mgn 25%). Approval is pending from the Italian competition authorities, so the deal is not expected to close until 3Q24. The amount of the transaction would go to reduce debt, which after the acquisition of Vidroporto reached €483mn (1.1x BITDA) and pay an extraordinary dividend.
Assessment: Positive news, as the Italian market is not very strategic for Vidrala, where they only had a 3% market share, which did not allow them the same production and pricing power as in their other markets where they have a greater presence. This is a strategic and non-financial transaction, as they have a relatively comfortable financial position (1.1x EBITDA), although the cash obtained will allow them to strengthen the balance sheet and thus be able to focus on their most strategic markets (Iberia, UK and Ireland) and on the integration of Vidroporto in Brazil.
