2MX Organic and InVivo Retail join forces to create Teract, listed on Monday, Market News

PARIS (Agefi-Dow Jones). Stock exchange-listed investment company 2MX Organic and InVivo Retail (“Special Purpose Acquisition Company” or Spac), merging the distribution activities of the French agricultural cooperative group InVivo Group, has completed its merger and become Teract, various parties announced on Friday.

This marriage creates a “major breakthrough player” that “combines tradition and modernity, production and distribution, agricultural know-how and innovation, in-store and online experience,” Teract said in a press release.

From Monday, the company will be listed on the Paris Stock Exchange under the new corporate name Teract under new ticker codes (“TRACT”) and Isin (“FR001400BMH7”). Created by Xavier Niel, founder of Iliad, investment banker Mathieu Pigasse and Moez-Alexandre Zouari, Spac 2MX Organic, which operates 1,500 stores under the names Franprix, Monoprix and Picard, signed an initial public offering in the biggest year of 2020 in Paris, raising 300 million Euro. Shares of 2MX Organic rose 8.4% to €7.46 on Friday.

InVivo Retail is valued at 675 million euros.

As it was announced at the end of March, the merger of the two companies brought the value of InVivo Retail’s enterprise to 675 million euros, whose annual turnover under the banners is close to 3 billion euros, and the consolidated business turnover is close to 1.35 billion euros. InVivo Retail brings together Gamm vert, Jardiland and Delbard in horticulture, Frais d’Ici and Bio&Co in food distribution, and Noa pet stores. In total, its network has 1,597 stores in France, 213 of which are directly owned.

The transaction consisted of an in-kind contribution of InVivo Group’s entire equity stake in InVivo Retail, representing 100% of the latter’s share capital and voting rights, to 2MX Organic. InVivo Group’s InVivo Retail share contribution was fully offset by the issuance of new 2MX Organic shares at a price of €10 per unit. Following this share issue, InVivo Group became the majority shareholder of 2MX Organic.

Bpifrance enters the capital of Terror

After the completion of all planned capital transactions, InVivo Group will own 68.70% of the capital and voting rights of Teract, while the participation of the founders of Spac will be 12.25%, and Bpifrance – 1.48% of the titles. The State Investment Bank did benefit from an increase in capital reserved for a €12 million investment in Teract.

The raised funds, which come in addition to the remaining proceeds from the 2MX Organic IPO at the end of 2020, provide Teract with financial resources of just over €100 million to implement its commercial expansion strategy. As a priority, Teract intends to develop a new store concept under the brand “Grand Marché – Frais d’ici”, which will specialize in the sale of fresh and local products. Building on the garden centers of the InVivo retail chain, the Grand Marché – Frais d’ici stores will build on the strengths of the new organization, in particular supplying through InVivo’s network of member cooperatives.

In terms of governance, Thierry Blandinière, Managing Director of InVivo Group, was elected Chairman of Teract’s Board of Directors, with Moez-Alexandre Zouari as Managing Director. Cedric Carpin, Bertrand Hernoux, Bertrand Relav, Maha al-Bukhari Fournier, Eva Brandt, Marie-Amelie de Loess and Soraya Zouari have been appointed directors.

In addition, in the context of Bpifrance’s investment in Teract, the appointment of Bpifrance Investissement, represented by Louis Molis, as a member of the board of directors of Teract will be proposed at the company’s next general meeting and then at the time of approval of the financial statements for the year due to close on June 30, 2023.

-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] editorial: VLV

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July 29, 2022 1:30 pm ET (5:30 pm GMT)