Sonepar – Sonepar divests Vallen Asia
Sonepar announces the sale of Vallen Asia, in the form of a Management Buy Out (MBO), to the Vallen Asia leadership team, consistent with the Group’s strategic decision to focus on its core business and ensure management continuity to the organization.
In 2023, Vallen Asia had revenues of around €90 million and employed 244 associates across Singapore, Thailand, Malaysia and China. Vallen Asia joined the Sonepar Group as part of the Hagemeyer acquisition in 2008. Since that time, Vallen Asia has continued to develop as the market leader in ‘Integrated Supply’ across Asia.
The transaction closed on December 13th, at which time Vallen Asia is deconsolidated from the Sonepar Group. However, in order to support the Vallen Asia team, Sonepar will remain as a committed minority shareholder for the next 5 years.
“This strategic decision allows Sonepar to sharpen its focus on its core strengths and invest more deeply in areas where we see the greatest potential for growth. We are confident that this move will not only benefit our organization, but also provide Vallen Asia and its associates with the opportunity to thrive under new ownership, ” said Jean-Cyrille Verspieren, APAC President Sonepar.
Andrew Bennett, Country Manager Sonepar Singapore, who will be leaving the Group after 16 years leading Vallen Asia, commented, “It has been a unique and enormously enriching journey, both personally and collectively, to ‘grow up’ as part of the Sonepar family. Although our paths diverge at this point, the Sonepar DNA will be forever imprinted in Vallen Asia, an invaluable takeaway. The Vallen team is excited and fully committed as we enter the next stage of our evolution.”
SourceSonepar
EMR Analysis
More information on Sonepar: See the full profile on EMR Executive Services
More information on Philippe Delpech (President (as Representative of Colam Entreprendre) and Chief Executive Officer, Sonepar): See the full profile on EMR Executive Services
More information on Andros Neocleous (Chief Financial Officer and Deputy Chief Executive Officer, Sonepar): See the full profile on EMR Executive Services
More information on Jean-Cyrille Verspieren (President, Asia Pacific, Sonepar + Member of the Sonepar Executive Committee (SEC), Sonepar): See full profile on EMR Executive Services
More information on Vallen Asia: https://www.vallen.asia/ + Vallen is a leading provider of indirect industrial supplies–all those materials that are not part of the products our customers manufacture.
From earplugs to specialty tools, to abrasives and cutting tools, we cover the vast majority of our customers’ maintenance, repair, operations and production-related needs. Vallen is also a leader in technical services with offerings that include safety equipment inspection, maintenance, certification and solution design.
Many of our customers look to us for integrated supply solutions and vendor-managed inventory, with Vallen associates on-site, bringing local knowledge and expertise to the specific needs of individual facilities.
In 2023, Vallen Asia had revenues of around €90 million and employed 244 associates across Singapore, Thailand, Malaysia and China. Vallen Asia joined the Sonepar Group as part of the Hagemeyer acquisition in 2008. Since that time, Vallen Asia has continued to develop as the market leader in ‘Integrated Supply’ across Asia.
The transaction closed on December 13th, at which time Vallen Asia is deconsolidated from the Sonepar Group. However, in order to support the Vallen Asia team, Sonepar will remain as a committed minority shareholder for the next 5 years.
More information on Andrew Bennett (Chief Executive Officer, Vallen Asia): https://www.linkedin.com/in/andrewfbennett1/
EMR Additional Notes:
- Management Buy Out (MBO):
- The term management buyout (MBO) refers to a financial transaction where someone from corporate management or the team purchases the business from the owner(s). Management members that execute MBOs purchase everything associated with the business. This type of buyout appeals to professional managers because of the greater potential rewards and control from being owners of the business rather than employees. The MBO is a type of leveraged buyout (LBO), which is an acquisition funded primarily with borrowed capital.