2MX Organic and InVivo Retail Join Forces to Create Teract, Listed Monday Market News

PARIS (Agefi-Dow Jones) – 2MX Organic and InVivo Retail, the listed investment company (“Special Purpose Company” or Spac), which combines the distribution activities of French agricultural cooperative group InVivo Group, have completed their merger to become Teract, the parties announced on Friday.

This marriage creates a “major disruptive player” that “combines tradition and modernity, manufacturing 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 with new tickers (“TRACT”) and Isin (“FR001400BMH7”). Spac 2MX Organic, founded by Xavier Niel, founder of Iliad, investment banker Matthieu Pigasse and Moise-Alexandre Zouari, which operates 1,500 stores under the Franprix, Monoprix and Picard names, has signed its biggest initial public offering of the year. 2020 in Paris, raising 300 million euros. On Friday, 2MX Organic shares rose 8.4% to 7.46 euros.

InVivo Retail is valued at 675 million euros

As announced at the end of March, the merger of the two companies resulted in a value of €675 million for InVivo Retail, whose annual turnover under the flags is around €3 billion and a consolidated business turnover of €1.35 billion. InVivo Retail brings together the brands Gamm vert, Jardiland and Delbard in the field of horticulture, Frais d’Ici and Bio&Co in the field of food distribution, as well as pet stores Noa. In total, its network has 1,597 stores in France, of which 213 are directly owned.

The agreement provided for the in-kind contribution of the entire share of InVivo Group in the capital of InVivo Retail, which is 100% of the share capital and voting rights of the latter, in favor of 2MX Organic. InVivo Group’s in-kind contribution of InVivo Retail shares was fully offset by the issuance of new 2MX Organic shares at a unit price of €10. Following this share issue, InVivo Group became the controlling shareholder of 2MX Organic.

Bpifrance is part of Teract capital

Upon completion of all planned capital transactions, InVivo Group will hold 68.70% of Teract’s capital and voting rights, while the Spac founders will hold 12.25% and Bpifrance will hold 1.48% of the titles. The state-owned investment bank has indeed benefited from the increased capital reserved to invest €12 million in Teract.

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

On the governance side, Thierry Blandignier, Managing Director of InVivo Group, has been elected Chairman of Teract’s Board of Directors, while Moez-Alexandre Zouari becomes its Managing Director. Cédric Carpin, Bertrand Erna, Bertrand Relave, Maha al-Bukhari Fournier, Eva Brandt, Marie-Amelie de Luss and Soraya Zouari have been appointed as directors.

In addition, in the context of Bpifrance’s investment in Teract, the appointment of Bpifrance Investissement, in the person of Louis Molis, as a member of Teract’s board of directors will be proposed at the next general meeting of the company, and later during the approval of the financial statements for the year ending June 30, 2023.

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

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