MF FP

WENDEL

Finance/Real Estate


Presented:10/08/2013
Price:€99.25
Cap:$4.90B
Current Price:€93.10
Cap:$4.41B

Presented

Date10/08/2013
Price€99.25
Market Cap$4.90B
Ent Value$12.41B
P/E Ratio70.18x
Book Value€54.68
Div YieldN/A
Shares O/S47.13M
Ave Daily Vol80,000
Short IntN/A

Current

Price€93.10
Market Cap$4.41B
Wendel is a private equity firm specializing in equity financing in middle markets and later stages through leveraged buy-out transactions. The firm invests in companies operating in oil and gas, real estate, healthcare equipment and services, electricals, information technology, materials, telecommunications, and utilities. companies. It invests in both listed and non-listed companies. The firm seeks to invest in Europe, North America and Africa and prioritizes its investments in France, Germany, Belgium, Netherlands, Luxembourg, United States, and Canada but also considers investments in other geographies. It invests between €0.2 million ($0.26 million) and €0.5 million ($0.66 million) in companies in the priority geographies which includes France, Germany, Belgium, Netherlands, Luxembourg, and Canada. For other geographies, it invests up to €0.2 million ($0.26 million). The firm acquires at least a 34 percent stake in each portfolio company and requires the majority of voting rights. It prefers to take a majority stake in its portfolio companies. The firm seeks to take a seat on the board of directors or supervisory board of its portfolio companies. It makes balance sheet investments. Wendel was founded in 1704 and is headquartered in Paris, France.

Highlights

Wendel is an investment and holding company that owns an asset the presenter is “in love with.” The stock is trading at ~EUR 100, and its two largest assets are just over a 50% stake in Bureau Veritas (BV), and a 17% stake in Saint-Gobain (SG). Outside of those two holdings, Wendel owns some smaller, private investments. BV is the most interesting play, in the presenter’s opinion, so he hedged out SG. The way the math works out on a gross asset value basis, Wendel has EUR 200 gross asset value investment and a NAV of EUR 135 after adjustments for debt and other items.

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