The French retail giant is looking for a buyer for its GreenYellow subsidiary. This energy supplier and producer, founded in 2007, has already received five offers from investment funds and industrialists. The sale could take place as early as July as part of Casino’s plan to reduce its debt. Here’s an update from AURIS Finance experts, a merger and acquisition consultancy.
It has been 15 years since the creation of the French firm GreenYellow, which focuses on solar photovoltaic production solutions, energy efficiency, and energy services. Owned 73% by retail giant Casino, co-shareholder of the Tikehau Capital fund, GreenYellow has traditionally worked with food retailers and local authorities, installing solar panels on the roofs of buildings, warehouses, and supermarkets. Since 2007, GreenYellow has made great strides in expanding its offering, from the development of electric mobility to new solar technologies such as hybrid energy storage systems and floating solar power. Over the years, GreenYellow has diversified its customer portfolio into new sectors and strengthened its international presence. Now active in 17 countries, 75% of the group’s business is generated outside France, particularly in Asia and South America. In 2020, the group’s revenue stands at €352 million, up 40% on the previous year, and is expected to reach €500 million in 2021. This growth is largely driven by the increase in global demand for clean energy.
Debt reduction plan and asset disposal
Despite a promising future for GreenYellow, Casino is looking to sell its subsidiary. This strategy is part of the debt reduction plan launched by Casino in 2018. This strategy is accompanied by a simplification of the group’s legal structures, separating the French shop networks from the e-commerce division, and from ancillary activities such as GreenYellow and RelevanC, a company specialising in the management and exploitation of the group’s data. Since July 2018, Casino has divested assets worth €2.8 billion and has an overall target of €4.5 billion from divestments. The sale of GreenYellow is part of this strategy. “The aim is to complete the sale by mid-July, interest is quite high. The priority is a good valuation and a strong offer,” a person close to the matter told the daily Les Echos.
Industry giants in the race to buy GreenYellow
Among the potential buyers are investment funds Macquarie, I Square Capital and Icon Infrastructure, all three of which are interested in buying the company. In total, the French retail giant is said to have received five bids, with the other two coming from industrialists: the Dutch industrialist SHV Energy and the giant Veolia, which is ready to join forces with an investment fund. The sale of GreenYellow could also be of interest to other giants in the sector, such as TotalEnergie, the Portuguese energy company EPD, ENGIE and the Ardian fund. There is therefore real competition for this target. The price sought by the group’s management is €1.5 billion, or fifteen times projected 2022 Ebitda.
Get the support you need
Following the example of GreenYellow, fast-growing companies positioned in dynamic markets are now attracting a great deal of interest from investment funds and industrialists. AURIS Finance’s sector specialists will assist you throughout the entire process of selling or buying a company.
