FRANCE, May 15, 2001 (PRIMEZONE) -- ALSTOM has signed a definitive agreement for the sale of its Contracting Sector in a management buy-out backed by CDC Equity Capital (Groupe CDC Ixis) and Charterhouse Development Capital.
CDC Equity Capital and Charterhouse have involved several members of management including Mr. Claude Darmon and Mr. Jacques Gounon who accordingly will leave ALSTOM.
The transaction is concluded on the basis of a price of 770M, with ALSTOM retaining, in addition to the net cash held by the Contracting Sector, close to 600M.
The Contracting Sector is the local electrical installation arm of the former CEGELEC acquired by ALSTOM in 1998 with net sales in the fiscal year 2001 of 2.5 billion. The other parts of CEGELEC, focused on systems, were integrated from the beginning within the corresponding Power, T&D and Transport Sectors of ALSTOM.
Merrill Lynch has acted as advisors to ALSTOM in connection with this transaction which is subject to the usual conditions precedent and regulatory approvals. The closing is expected towards the end of June 2001.