FRANKFURT: Auto transport agency Gefco has been put up on the market by house owners Russian Railways (RZhD) and carmaker Stellantis in a deal anticipated to be price greater than 2 billion euros ($2.39 billion), folks near the matter stated.
The house owners are working with JP Morgan and Rothschild on the divestiture, they stated, including potential patrons have already been requested to log their curiosity.
Gefco, its house owners and the banks declined to remark.
Gefco is predicted to submit earnings earlier than curiosity, taxation, depreciation and amortisation of 345 million euros on gross sales of 4.4 billion this yr, one of many sources stated.
In 2020, manufacturing facility and dealership closures and delayed purchases by shoppers because of the pandemic led to a 20% slide in turnover to three.8 billion euros, whereas recurring EBIT fell 32% to 140 million.
Automotive markets have since rebounded and European automobile registrations surged 74% in Could, rising for the third month in row.
Stellantis stays Gefco’s major buyer, accounting for roughly half of its income, and has already flagged that it’ll scale back its enterprise with Gefco, weighing on the corporate’s valuation, the folks stated.
Whereas many listed logistics friends commerce at greater than 10 instances their anticipated core earnings, Gefco is predicted to be valued at considerably lower than 10 instances, one of many sources stated.
France’s PSA Group offered a 75% stake in Gefco to Russian Railways in 2012 for 800 million euros. PSA rebranded as Stellantis final yr after its merger with FCA.
Based in 1949, Gefco employs 11.500 workers in 47 nations. It tried to drift on Euronext in 2019, however needed to scrap plans on muted investor curiosity.
The corporate sells transport companies to Stellantis, Ford, Renault, Skoda and Toyota, but in addition different corporations akin to Nestle and Electrolux.
In September, a worldwide cyberattack on Gefco made headlines and Gefco stated in its annual report revealed in Could that it made vital progress in rolling out a brand new IT system.
Stellantis Chief Government Carlos Tavares has stated he would current a marketing strategy for Stellantis in late 2021 or early 2022, as he’s working to ship on a synergy goal of greater than 5 billion euros a yr.
Stellantis this month floated French used automobile group Aramis.
Russian Railways, initially deliberate to broaden its logistics enterprise after shopping for Gefco, however a couple of years later modified course, promoting Russian railway logistics container operator Transcontainer.