Naxicap explores sale of Ondura

The French roofing and building waterproofing specialist is expected to generate around EUR 60m in EBITDA, two sources said. This would be an increase from EUR 44.3m in 2020, EUR 37.5m in 2019, and EUR 36.5m in 2018, one of the sources said. Ondura's 2021 turnover is projected to increase by approximately 21% to around EUR 410m, this source added.

Ondura, previously known as Onduline, is one of the few building materials groups that has increased its sales during the Covid-19 pandemic, at a time when most peers have either declined or been stable, the source said.

Information memorandums are out and the company is in the process of selecting parties for the next round, one of the sources said.

There is a lot of interest from sponsors and trade buyers as the company's profile has fundamentally changed over the last three years, this source added. About 70% of sales are driven by renovation and refurbishment work, which represent very resilient sectors, they said. Of the sales, 70% are generated via professional distributors and 30% via DIY chains, which offers a balanced portfolio with limited risk of bad debt, the source added.

The business's capex has represented 2% of sales on average over the last five years and 65% EBITDA to free up cashflow conversion over 2020 and 2021, this source added. Working capital represents 20% of sales, he added.

It managed to avoid the recent supply chain disruptions by passing materials' price increases onto customers without any impact on revenue, he added.

The business's exposure to emerging markets such as Russia and Turkey could be a problem for suitors, one of the sources said. Yet while Russia and Turkey represented more than 70% of Onduline's EBITDA in 2013, the markets represent less than 30% of Ondura's EBITDA in 2021, another of the sources said.

Ondura is a much more diversified asset with recent European acquisitions, this source added. Earlier this year, it acquired polish company CB, a manufacturer and distributor of speciality building materials, for undisclosed terms. In 2019, it acquired German flat roof specialist Alwitra.

The company uses materials that have a low carbon footprint such as Onduline Classic, a roofing sheet made from around 50% recycled materials, according to the company's website.

In 2017, Naxicap acquired an undisclosed majority stake in Onduline for an estimated consideration of EUR 220m.

Established in 1944, the company operates in 32 countries and has 13 plants, as per its website.

Ondura declined to comment. Naxicap and Natixis did not respond to requests for comment.

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