TKH to divest connectivity activities in France

TKH to acquire minority stake of 40%

TKH Group NV (“TKH”) announces that private equity group Argos Wityu SAS has provided its commitment to acquire 100% of the shares of TKH France SAS (“TKH France”), through a newly created company SCS Wityu Holding SAS (“SCS Wityu”). TKH France distributes connectivity solutions for the building & construction industry mainly in France and contains the entities CAE Data SAS and ID Cables SAS. The turnover of TKH France totaled € 129.3 million in 2022 with an EBITA of € 19.6 million and 186 FTEs. The divestment of TKH France fits within TKH’s strategy of focusing on proprietary smart technologies.

The transaction is expected to close in Q3 2023, subject to the customary employee information and consultation procedures in France as well as necessary regulatory antitrust filings.

TKH France will be divested for an Enterprise Value of € 118 million. Under the terms of the agreement, TKH will invest € 26.5 million in SCS Wityu to acquire a minority stake of 40%. SCS Wityu will be controlled by Argos Wityu SAS, with key management of TKH France also participating. Upon closing, TKH is expecting a one-off net profit contribution of about € 20 million.

Alexander van der Lof, CEO of TKH Group: With the announcement of this intended substantial divestment a next milestone in the roll out of our Accelerate 2025 strategy is reached. The value creation potential with a buy and build strategy for this activity can best be realized outside the TKH Group and we firmly believe that private equity group Argos Wityu will bring the right experience and necessary focus to grow these activities into the next stage. For TKH, this divestment allows us to put further strategic focus on our differentiating and innovative power in smart technologies to drive added value at higher levels. By reinvesting part of the proceeds for a 40% share, TKH has the opportunity to further benefit from the value creation potential in the near future. TKH will continue to be active in France within Smart Connectivity systems with fibre optic network solutions under the brand TKF Telecom.

Thomas Ribéreau, Partner at Argos Wityu commented: Argos Wityu is proud to have been chosen by TKH Group to further develop this very successful French connectivity solutions company. We are pleased that TKH Group will remain invested in the operations. We will strive to preserve the group’s DNA, developing its market-leader identity and the value-add brought to its customers through its strong offer of products and services, and to structure its growth.

Haaksbergen, May 31, 2023

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