Claranova to redeem minority interest in PlanetArt subsidiary
Paris, France-based Claranova announced the signing of a binding agreement between its subsidiary PlanetArt LLC and Société Commune Européenne de Participation (“SCEP”), for the redemption of between 25% and 65% of the 7.7% minority interest SCEP holds in PlanetArt. With this transaction, Claranova will have a greater share of PlanetArt’s future performance.
Total cash consideration paid out to SCEP from PlanetArt’s cashflows ranges from a minimum of $14 million up to a maximum of $38 million. The shares acquired from SCEP will be canceled.
SCEP is a subsidiary of CAP Invest, the family office of the Riccobono group, a major European print industry manufacturer. In September 2017, SCEP took an equity interest in PlanetArt through the $14 million purchase of new preferred shares at a post-money valuation of over $225 million to fund growth. At the time, PlanetArt was in worse financial condition but is now solidly profitable.
“We are very grateful for the support of SCEP through the past four years and their active engagement in steering PlanetArt through the hypergrowth phase the company has experienced since SCEP’s investment in 2017,” said Pierre Cesarini, CEO of the Claranova group. “In view of PlanetArt’s unmatched long-term potential and SCEP’s desire to start cashing out, we believe improving our access to PlanetArt’s future performance to be an excellent use of the company’s cash position.”