Closing of divestment TKH France

TKH initiates € 25 million share buyback program

TKH Group N.V. (“TKH”) announces that the divestment of its TKH France activities to private equity group Argos Wityu, which was announced on May 31, 2023, has been closed. 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 activities will be continued by a newly established company under the name SCS Wagram Holding, in which TKH acquired a minority interest of 40%.

The transaction results in a one-off net profit contribution of about € 21 million for TKH in the third quarter of 2023 and a net cash inflow of about € 70 million, including the reduction of the off-balance non-recourse factoring and supply chain finance.

Following the closing of this divestment, TKH France will no longer be consolidated in TKH Group’s fourth quarter results. Therefore, barring unforeseen circumstances, for the full year 2023 TKH expects EBITA before one-off income and expenses to be between € 230 million and € 240 million, translating into a net profit before amortization and one-off income and expenses attributable to shareholders of between € 126 million and € 134 million.

In 2022, the turnover of TKH France totaled € 129.3 million with an EBITA of € 19.6 million and 186 FTEs. For comparison purposes (excluding the fourth quarter 2022 EBITA contribution from TKH France), in 2022 TKH Group EBITA totaled € 229.2 million, and net profit before amortization and one-off income and expenses attributable to shareholders € 139.2 million.

As part of the closing of the divestment of TKH France, combined with the strong financial foundation of the company, TKH will initiate a share buyback program of up to € 25 million in the coming months.