Vantiva announced it plans to sell its Supply Chain Solutions division, which includes optical disc (Blu-ray, DVD, CD) replication, vinyl record manufacturing and logistics services, to funds managed by Variant Equity.
For more information visit: www.vantiva.com
Unedited press release follows:
Vantiva Announces Plan to Sell its Supply Chain Solutions Division to Funds Managed by Variant Equity
The potential sale further enables both Connected Home and Supply Chain Solutions (SCS) to focus on their respective core businesses
Paris, France – December 19, 2024 – Vantiva (Euronext Paris: VANTI), a global technology leader enabling Network Service Providers to connect consumers worldwide, announces its plans to sell its Supply Chain Solutions (SCS) division to funds managed by private equity firm, Variant Equity, by entering into a Put Option Agreement.
After a competitive and impartial selection process, the Board of Directors has chosen Variant Equity as the best partner to support SCS’s future and ensure alignment with the company’s corporate interests.
The transaction is based on an SCS valuation of $40 million, subject to the usual adjustments, including a working capital adjustment at closing.
In accordance with IFRS 5, SCS will be classified as discontinued operations in Vantiva’s Fiscal Year 2024 accounts. Vantiva will also record a necessary asset impairment, and its valuation process is currently underway.
The group’s 2024 guidance remains unchanged. However, for ongoing activities, they are as follows: EBITDA exceeding €100 million and a positive free cash flow after financial expenses and taxes and before restructuring and integration costs related to the CommScope Home Networks acquisition.
“We are very pleased with the prospect of selling SCS to Variant. Given their focus on corporate divestitures and previous industry experience, we believe they are the best-suited partner for moving the business forward,” said Tim O’Loughlin, CEO of Vantiva, “I am excited about SCS’s future with Variant.”
Farhaad Wadia, Managing Partner of Variant Equity, also expressed enthusiasm for the prospect of SCS joining Variant as a stand-alone portfolio company, stating, “Over the years, SCS has developed valuable customer relationships, a comprehensive set of capabilities and a robust global infrastructure. We look forward to partnering with the SCS team to unlock continued growth and capitalize on the business that has been built under Vantiva’s ownership.”
Rob Wipper, President of Supply Chain Solutions, added, “We’re excited about the prospect of joining the Variant portfolio. As a stand-alone company, SCS can accelerate diversification strategies, including expanding our precision manufacturing and third-party logistics services, while maintaining our focus on the production and distribution of physical media content.”
The pending sale of SCS demonstrates Vantiva’s commitment to innovation and is the next step in implementing a more customer centric strategy. Whereas earlier acquisitions, such as the January 2024 acquisition of Home Networks, strengthened Vantiva’s portfolio of assets and expertise, the pending sale of SCS will now allow Vantiva to concentrate on optimizing those assets and expertise to deliver cutting-edge solutions to customers in the video, broadband, and related technology spaces.
The transaction, in which Moelis & Company LLC is serving as exclusive financial advisor to Vantiva, is contingent on Vantiva’s exercise of the Put Option to enter into a binding Equity Purchase Agreement, pending the completion of consultation processes with Vantiva’s Works Council, along with other typical and customary conditions. Both parties are confident of a positive outcome in the coming weeks.