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Case Study: Framatome ANP - Divestiture

Situation

Framatome Advanced Nuclear Power purchased a large engineering services company to expand its U.S. presence. One of the divisions of the acquired Company did not fit with Framatome’s long-term strategic focus.
Framatome wanted to sell the division but was very concerned about the sensitive nature of a sale and the impact that the process would have on the management team who were also interested in purchasing their division.
Further complicating the process, Framatome is partially owned by the French government and the sale process had to be scrutinized closely by the government and ultimately had to meet its approval.

Solution

Matrix developed a financial model representing the division as a stand-alone operating company, provided Framatome with a full valuation analysis and produced a memorandum for marketing. Matrix advised Framatome on the strategic marketing and managed the entire selling process.
Matrix approached strategic buyers while at the same time negotiating with the division’s management team to produce a credible offer that would be competitive with the strategic acquirers. Framatome chose to sell to its management team.
Matrix negotiated the terms and conditions of the sale and insured that full debt and equity were in place to close and receive French government approval.