Sales rise 12% and operating income on ordinary business nearly doubles.
Successful integration of Schiederwerk and agreement to sell Savoye reflect continued diversification into less volatile industrial activities.
Steep rise in 2017 consolidated results
Legris Industries, a diversified industrial group with four Divisions—Clextral, Keller, Savoye and Schiederwerk—reported an 8% rise in sales at comparable scope of operations in 2017, powered by growth at Clextral, Savoye and Schiederwerk. At actual scope, Group revenue rose 12% to €254m for the year, with Schiederwerk consolidated for only 8 months in 2016. Over the same period, operating income on ordinary business nearly doubled to €12.2 million or 4.8% of consolidated sales.
These figures confirm that the Group has returned to profitability and that its growth strategy is succeeding.
2017 Sales by Division
Clextral, the global leader in twin-screw extrusion technology, reported 7% full-year organic growth in sales in 2017, for a total of €61.9m. With €60m in orders booked during the year, the Division got off to a strong start in 2018.
Keller, which designs and provides turnkey plants and equipment for production plants in the building materials industry (bricks and tiles), announced sales of €69.8 million, down a slight 4% from 2016. The Division kicked off 2018 by signing a major contract for a fully equipped plant in South Africa.
Savoye, specialized in automated logistics systems, reported double-digit growth in sales—up 10% to €85.1m—fueled by fast-moving markets and an influx of large orders. Altogether, orders increased by a steep 43% to €112 million.
Schiederwerk, a specialist in electric power-supply systems for high-intensity lighting, confirmed its growth potential with €38 million in sales at year-end 2017, up 39% from 2016. At end-2017, the Division’s total orderbook was double that of end-2016, a sign of continued growth ahead.
Sale of Savoye Division and unchanged business strategy
Legris Industries has just signed an agreement for the sale of Savoye with Noblelift industrial investment fund, which was set up by Noblelift Intelligent Equipment Co. Ltd (Noblelift) and two other investors. The buyer is awaiting approval from Chinese officials to finalize the acquisition, which comes amid a wave of consolidation among global players in automated handling in recent years. With strong support from Noblelift, Savoye will improve its exposure to international markets and secure new resources to accelerate growth outside its traditional markets.
In line with its strategy of investing in mid-size industrial companies over the long term, Legris Industries acquired Savoye in 1992. Since then the Division has expanded rapidly: after acquiring a number of businesses in its sector, Savoye now offers customers a full range of automated logistics solutions. Its sales have quadrupled, and it has become a key player in intralogistics in Europe.
With the sale of Savoye, which should be finalized in the second half of 2018, and its robust orderbook in early 2018, Groupe Legris Industries is pursuing a growth strategy based on both organic growth and acquisitions. The Group continues to seek acquisitions in new, less volatile industrial activities—such as Schiederwerk, acquired in 2016—and will now have increased financial resources to achieve its goals.
FTI Consulting Strategic Communications
Tel: +33 1 47 03 68 10