BREAKING NEWS – 06.12.2023

In a press release of December 1st, 2023, Nusco SpA, a Company operating in the production and marketing of NUSCO-branded wood, PVC, aluminum and iron interior doors and window frames, listed on Euronext Growth Milan, resolved to subscribe the capital increase in Modo Srl, a company that is related to the Nusco family and active in the production of window frames including wood, wood-aluminum and PVC windows, shutters and iron and aluminum grides, for exclusive sale to Nusco SpA. Nusco’s subscription of the capital increase in Modo, amounting to € 1.06 million, will take place through the offsetting of part of a receivable amounting to € 1.66 million that Nusco has from Modo, due to a subcontracting agreement signed in January 2020. For the remaining part of the receivable, amounting to € 0.60 million, the parties renegotiated the terms for the fulfillment of orders already accepted but still outstanding, which will be carried out in two equal tranches in fiscal years 2024 and 2025. The subscription assumes a relevant strategic value for both Companies: Nusco recognizes the great experience of Modo Srl in the production of wooden frames and considers the consolidation of the strategic partnership to be fundamental, which in this case turns, for Nusco, into greater production flexibility, as well as an expansion of its range of customized products. Through the subscription, the Company will have access to Modo’s specialized skills and production capacity, paving the way for the achievement of greater vertical integration and significant operational synergies that will enable it to ensure greater quality and competitiveness in the market. Nusco will thus hold approximately 44.17 % of the share capital of Modo Srl. The remaining part of the capital will be attributable to:  the Romanian company Nusco Trade Srl for 51.67 %;  Industria Meridionale Trasformazione Legno I.M.T.L. Srl for 3.05%;  Nusco immobili Industriali Srl for 1.12%. Guerino Vassalluzzo, Chairman and CEO of Nusco stated: “The operation of acquiring the stake in Modo represents an important strategic step for Nusco in its goals of developing and consolidating the window and door business. This investment, allows us, in fact, to pursue our strategy of expansion and strengthening of our market positioning, while maintaining a competitive advantage in our reference sector, that of window and door frames, which is increasingly in rapid evolution. In addition, Modo represents an important partner for Nusco, with great added value, which will contribute significantly to increasing and improving the Nusco Group’s offering, responding effectively to customer needs. This operation is in line with the commitments pursued by the Group in recent years, and is part of the broader growth path both at the national and international level.” The agreement confirms the positive trend for Nusco and outlines an important growth path in the medium to long term. While waiting to evaluate the 2023 year-end results, we confirm our recommendation: target price € 3.15, BUY rating and risk MEDIUM.

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