AREVA signed an agreement with the private equity firm Bain Capital, setting out the legal and financial terms and conditions for the disposal of FCI, AREVA’s connector subsidiary. This agreement received approval from AREVA’s Supervisory Board held on 19 September. Since its inception in 2001, AREVA has been closely involved in FCI’s financial recovery. FCI can now pursue its development, based on a healthy industrial and financial situation. On the other hand, AREVA is planning to focus its resources on its core business, energy. Following a competitive process, AREVA retained Bain Capital’s offer, which is the best bid from a financial as well as industrial and social point of view for the reasons listed below:
o The transaction values FCI at an enterprise value of € 1.067 billion.
o Bain Capital, with the support of FCI’s management, is willing to implement an ambitious development strategy.
o Bain Capital offers significant social guarantees: continuity of social policies, location of FCI headquarters in Versailles, and preservation of the Communication Data Consumer division industrial sites in Europe as well as industrial sites in France for at least 3 years.
The closing should occur before the end of October subject to approval by the antitrust authorities, and to a decree following the recommendation of the French ‘Commission des Participations et des Transferts’. The disposal of FCI should have a positive impact of about € 500 million on the AREVA group’s 2005 consolidated net income and generate a positive cash flow of about € 850 million.
o The transaction values FCI at an enterprise value of € 1.067 billion.
o Bain Capital, with the support of FCI’s management, is willing to implement an ambitious development strategy.
o Bain Capital offers significant social guarantees: continuity of social policies, location of FCI headquarters in Versailles, and preservation of the Communication Data Consumer division industrial sites in Europe as well as industrial sites in France for at least 3 years.
The closing should occur before the end of October subject to approval by the antitrust authorities, and to a decree following the recommendation of the French ‘Commission des Participations et des Transferts’. The disposal of FCI should have a positive impact of about € 500 million on the AREVA group’s 2005 consolidated net income and generate a positive cash flow of about € 850 million.
