Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Paris  >  Electricité de France    EDF   FR0010242511

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Vinci's acquisitive energy arm hunts more targets in Europe

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/06/2017 | 04:34pm CEST

French energy infrastructure and automation company Vinci Energies' apparently insatiable appetite for takeovers remains undiminished as it strives for leadership of the highly fragmented outsourcing industry.

Vinci Energies, part of construction and transport concessions giant Vinci (>> Vinci), has completed 250 takeovers since 2000, more than tripling its turnover to 10.2 billion euros (9.14 billion pounds).

"We can very well continue on this trend," Chief Executive Yves Meignie told Reuters.

In the first eight months of this year the company snapped up 17 smaller businesses with combined turnover of 450 million euros and has its eye on more as it expands in outsourcing and digital services.

"In our business, the scope for consolidation is very, very big; there is no lack of opportunities," said Meignie, adding that the main constraint is the company's ability to integrate all its acquisitions.

Vinci Energies is one of those businesses that is everywhere without most people ever having heard of it. From Paris street lamps to sophisticated building-management systems, it provides the glue that keeps infrastructure running.

It operates heating and cooling systems in office blocks and hospitals, automates factories and oil platforms, runs cloud-computing systems and builds transport infrastructure. It also builds power grids and solar and wind farms for utilities.

SPENDING SPREE

Its biggest deal was the 1.2 billion euro takeover of electrical engineering group Cegelec in 2010, which added about 3 billion euros of revenue and made the Qatar Investment Authority a large minority shareholder in parent company Vinci.

Other notable acquisitions include Dutch company Imtech's IT operation, Brazilian energy and transport specialist Orteng and the energy services business of Swiss Alpiq (>> Alpiq Holding AG), which made Vinci Energies the biggest player in energy infrastructure in Germany behind French rival Spie (>> SPIE).

It has also gobbled up a string of start-ups and small-cap companies that often continue to operate under their own brands, putting Vinci Energies at the centre of a network of some 1,600 businesses.

But Vinci Energies, which employs 64,500 people, does not simply swallow companies it buys. "We integrate them in a highly decentralised network," Meignie said.

Though further deals in a home market that generates 5 billion euros of annual turnover may raise antitrust concerns, most of the industries in which Vinci Energies operates are so vast and fragmented that its wider market share is rarely bigger than 1 percent.

Outside of France, the company has European turnover of 4 billion euros, half of which comes from Germany, plus a further 1 billion euros from outside Europe, largely in Southeast Asia.

CHASING SCALE

Main rivals include Germany's Siemens (>> Siemens), Hochtief (>> Hochtief) and Bilfinger (>> Bilfinger SE). EDF's (>> Electricité de France) energy services group Dalkia is another, as is Engie's (>> Engie) Cofely, which bought the facilities management arm of Britain's Balfour Beatty in 2014.

All these provide outsourced engineering, maintenance and facilities-management services to cities and companies, winning clients with their know-how and then adding packages of related services that they often subcontract.

M&A activity in that industry has intensified as large national players buy companies abroad to build European scale.

Three quarters of growth at Vinci Energies comes from acquisitions, Meignie said, adding that the typical 2-3 percent operating margin of those acquired businesses is then boosted to to Vinci Energies' average of 5.7 percent by ditching the least-profitable contracts.

Vinci Energies accounts for nearly a quarter of its parent company's revenue and is in the same league as its competitors and CAC40 index members Cap Gemini (>> Capgemini) and Atos (>> AtoS SE), but Meignie played down the possibility of spinning off the business in an initial public offering.

"Vinci Energies is at the heart of Vinci, our story is part of theirs," he said.

(Reporting by Geert De Clercq; Editing by Luke Baker and David Goodman)

By Geert De Clercq and Gilles Guillaume

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ELECTRICITÉ DE FRANCE
11:52a ELECTRICITE DE FRANCE : Nomination de Colin Matthews CBE en tant que Président N..
10/12 UK ask regulator to set price cap to mend "broken energy market"
10/12 UK energy price cap should allow 'headroom' to protect competition - minister
10/12 Britain asks Ofgem to devise consumer energy price cap plan
10/11 INFORMATION NOTE : INES-2 event report on seismic resistance of pipes located in..
10/09 Areva's Finland reactor to start in 2019 after another delay
10/09 UK energy price cap legislation to be published on Thursday - May's spokesman
10/09 ELECTRICITE DE FRANCE : EDF prepares for the next stage of system performance te..
10/09 EDF : EDF prepares for the next stage of system performance testing at the Flama..
10/09 EDF : EDF prepares for the next stage of system performance testing at the Flama..
More news
News from SeekingAlpha
10/05 Total enters French retail power market, ready for price war
07/29 Electricite de France SA 2017 Q2 - Results - Earnings Call Slides
07/29 Electricite de France (ECIFF) Q2 2017 Results - Earnings Call Transcript
07/28 Electricite de France SA reports 1H results
07/03 Hinkley Point reactor another £2.2B over budget, EDF says
Financials (€)
Sales 2017 69 594 M
EBIT 2017 6 085 M
Net income 2017 2 131 M
Debt 2017 40 892 M
Yield 2017 3,41%
P/E ratio 2017 13,98
P/E ratio 2018 14,82
EV / Sales 2017 1,05x
EV / Sales 2018 1,05x
Capitalization 32 309 M
Chart ELECTRICITÉ DE FRANCE
Duration : Period :
Electricité de France Technical Analysis Chart | EDF | FR0010242511 | 4-Traders
Technical analysis trends ELECTRICITÉ DE FRANCE
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 21
Average target price 10,3 €
Spread / Average Target -7,7%
EPS Revisions
Managers
NameTitle
Jean-Bernard Lévy Chairman & Chief Executive Officer
Xavier Girre Senior Executive Vice President-Group Finance
Christophe Salomon Head-Information Systems
Bruno Lafont Independent Director
Jacky Chorin Director
Sector and Competitors
1st jan.Capitalization (M$)
ELECTRICITÉ DE FRANCE24.67%37 876
NATIONAL GRID PLC-1.78%41 956
ENGIE17.45%40 894
SEMPRA ENERGY13.36%28 384
E.ON48.67%25 864
PPL CORP10.19%25 733