Reway Group S.p.A. /08.03.2023

Ultima Ricerca Reway Group S.p.A.

• BREAKING NEWS 06.12.2024

  In the press release dated December 4th, 2024, Reway Group announced the completion of the acquisition of a 60,0% stake in Vega Engineering Srl, a multidisciplinary engineering company specializing in the design of road and railway infrastructures, civil and industrial works, support services to the R.U.P. (“Responsabile Unico del Procedimento” in public procurement) such as technical, administrative, and legal assistance, and project management. The transaction was executed through a down payment by the purchaser of € 1.80 million in own funds and a capital increase of an equal amount reserved for the selling shareholders of Vega Engineering, totaling € 3.60 million. The company was thus valued at € 6.00 million, with an implied multiple of approximately 2.2x on 2023 sales and 4.6x on EBITDA for the same fiscal year (€1.30 million as of December 31st). Considering that, at the closing date, 60,0 % of Vega’s net financial position (cash positive) amounted to approximately € 1.50 million, the total equity value is € 5.10 million. For the remaining 40,0% of the share capital, Reway Group has committed to purchase through the exercise of a put&call option for a consideration determined based on the average EBITDA of the fiscal years 2024, 2025, and 2026. The capital increase allocated to the sellers, approved during the extraordinary shareholders’ meeting in October 2024, entails the issuance of 302,521 new shares at a price of € 5.95 each, corresponding to the weighted average price of RWY shares over the past six months. These new shares will be simultaneously admitted to trading on the Euronext Growth Milan (EGM) segment, with the sellers (who will thus hold 0.76% of Reway Group’s share capital) subject to a 24-month lock-up period from the execution date. This operation enables the expansion of the service range to include infrastructure design, enhances execution efficiency, and improves the capacity to initiate certain projects within the backlog, which amounts to € 1.131 billion following the acquisition, on November 29, by the subsidiary Gema S.p.A., of new railway contracts totaling €56.00 million. The agreement is part of a transformation process for the Group, which has approved and filed with the Companies’ Register the merger plan for the incorporation of the subsidiaries Soteco S.r.l. and TLS S.r.l. into the subsidiary MGA S.r.l. This operation, aimed solely at reorganization and having no impact on operations or employment levels, seeks to improve the Group’s operational efficiency, ensuring managerial and administrative simplification in projects requiring the contribution of all three companies. With the closing of the acquisition, the internal reorganization of subsidiaries, and the continuous expansion of the bcklog, we believe the Group is progressing towards achieving its objectives of sustainable growth and industrial development. Considering recent developments and pending evaluation of the fourth quarter’s progress, we confirm our estimates: target price € 8,30 rating BUY e risk Medium.

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