The Precia Molen Group has announced the ongoing acquisition of Creative IT, whose recurring business represents 80 % of its sales. This acquisition will further strengthen these results, thanks to an operating income ratio well above that of the group as a whole.
On March 31, 2021, Precia SA and the shareholders of Creative IT signed a promise to sell, subject to conditions precedent. Completion of this agreement is expected in the second quarter. It is envisaged that the main managers will be associated to a maximum of 20% of the share capital.
Creative IT publishes Qubes, a Manufacturing Execution System (MES) software package.
" Qubes is an innovative software solution for optimizing industrial performance and integrating the technologies of the industry of the future. It is the essential link between operators, equipment and the central information system (ERP). (...) This acquisition enables Precia Molen to position itself on the dynamic MES market and to accelerate the development of its data-driven software activities", says René Colombel, Chairman of the Management Board.
Numerous commercial and technical synergies have also been identified. Creative IT and Precia Molen have many industrial customers in common. Precia Molen's sales teams, with over a hundred technical sales representatives worldwide, will act as ambassadors for this new MES offering. Creative IT will provide strong technical support to Precia Molen in the implementation of weighing solutions of the future or new services using the Internet of Things, artificial intelligence, augmented or virtual reality.
Precia Molen has thus enriched its offering with data processing to meet customer needs in terms of production order tracking, performance, traceability and quality control.
The Precia Molen Group designs, manufactures, sells, installs, maintains and verifies industrial and commercial static weighing and continuous weighing and batching instruments. These solutions are designed for both heavy industry (mining, quarrying, iron and steel, energy, environment, etc.) and light industry (agri-food, chemicals, transport and logistics, etc.), as well as for government agencies (postal services, local authorities, etc.).
The Group posted sales of €135.9m in the full-year 2020, stable compared with the same period in 2019. The contribution from the acquisition of Milviteka UAB, at the end of 2019, amounts to +5.5% (over 12 months) with currency effects of -0.8% and a change is -4.9% on a like-for-like basis. Milviteka's good level of operating income (above the Group's average level) combined with cost control measures has enabled the Group to achieve a record level of operating profitability.
Although the company's main production subsidiaries in France and India were affected by the health crisis, their operations remained profitable. Service activities remained profitable.
The objectives of the 2016-2020 plan in terms of sales and operating income were thus exceeded despite the health crisis. Net income Group share 2020 reached €7.1m (+12.0%), representing 5.2 % of sales, compared with 4.6 % in 2019.
According to Precia Molen, 2021 should see a return to growth thanks to the gradual recovery from the health crisis and the implementation of various government stimulus plans.
Overall, the Group's business is back on the rise, particularly in Europe, India and China. All plants are operational. For the 2021 financial year, the Group is aiming for sales of between 140 and 145 million euros (excluding acquisitions), with an increase in operating income, even if higher steel prices and supply difficulties for certain electronic components may disrupt business.
In addition, service activities in France and abroad should continue to grow, particularly with major national and international accounts.
Creative IT, publisher and integrator of MES Qubes
Publisher and integrator of Q Manufacturing Execution System (MES) softwareubes, Creative IT is based in Lyon and employs around 40 people, generating sales of €3.2 million and Ebitda of over 25 % in 2020.
Creative IT has developed various versions of Qubes for companies of all sizes, from SMEs to major international groups. Qubes is available in 12 languages and is already deployed in 25 countries worldwide.
Founded in 1998, the company installed the Qubes with 200 customers and 500 industrial sites worldwide in a variety of sectors ranging from the food industry (Sodiaal, Refresco, Capitaine Cook, Tipiak, etc.) to defense and aeronautics (Nexter, Thales, SEAC, etc.), manufacturing (Hublot, Jaeger Lecoultre, etc.) and life sciences (Biomerieux, Delpharm, etc.).
Visit our websites:
en.preciamolen.com
www.qubes.com/fr/societe/creative-it