A deal with its lenders strengthens outsourcer Comdata's balance sheet and positions the company to execute its strategic plan, particularly in relation to industry consolidation opportunities.
Comdata Group says it has reached an agreement with its financial partners that, according to the group, "will significantly strengthen the company's balance sheet and speed up the company's future development. Thanks to this agreement, Comdata's financial debt will be considerably reduced and the interest payment conditions will be more favourable," Comdata stated in a release.
The company's management will raise its minority stake to 40%, with 50 key managers participating in the capital structure, alongside sponsor Carlyle. The financial creditors will convert part of their debt into equity-linked financial instruments. Maxime Didier, CEO of Comdata Group said: "I am very pleased with the agreement Comdata has reached with its financial partners. We are a financially stronger company, looking to the future with confidence and ambition. Our financial flexibility and highly committed management team will enable us to take full advantage of our business model which uniquely combines consulting, technology and personalised services. Our business is healthy, with significant new client wins, and we are confident in our long-term growth prospects. Comdata is poised to capitalize on existing market opportunities and intends to actively participate in the upcoming industry consolidation."
Massimo Canturi, President of Comdata Group added: "Comdata has successfully coped with the disruption caused by the pandemic. The company has kept growing, and we have been able to ensure the highest level of quality in serving our customers. This is a clear sign of the resilience of our business model and the quality of our people, which has enabled us to maintain our leadership and favourably position ourselves for future growth. I am confident that today's agreement will further strengthen the group's ability to capture current and future market opportunities."
Marco De Benedetti, co-head of the Carlyle Europe Partners advisory team and a member of Comdata's board of directors, said: "This agreement marks the beginning of a new chapter in Comdata's history and will allow the group to fully focus on its development. A stronger capital structure will also allow Comdata to reach its full potential in its key markets.