EPC Group and Swiss Society of Explosives Enter Exclusive Merger Talks
EPC Group and SSE Holding SA announce they have entered into exclusive discussions to merge their activities in civil explosives and drilling-blasting. The deal involves the contribution of SSE’s activities to EPC Group in exchange for 725,000 new shares, making SSE the second-largest shareholder with nearly 25% of the capital.
Details of the Negotiations
EPC Group and SSE Holding SA have initiated exclusive negotiations to merge their respective activities in civil explosives and drilling-blasting. The operation would take two complementary forms: on one hand, SSE would contribute all of its civil explosives and drilling-blasting activities to EPC in exchange for 725,000 new ordinary shares issued by capital increase; on the other hand, SSE would sell 75,000 EPC Group shares to December 4 SAS or one of its affiliates. This structure would result in SSE holding nearly 25% of EPC Group’s capital after the transaction, positioning it as the second-largest shareholder. SSE would also be represented on the EPC Group's Board of Directors. The valuation of SSE's activity contribution would represent 32% of EPC Group's capital before contribution, while the 725,000 new shares would constitute about 24.3% of the combined entity’s capital. The transaction remains subject to the completion of customary due diligence, the consultation of EPC Group's employee representative institutions, applicable regulatory conditions, and approval by the general assemblies of both companies. The parties aim to finalize the transaction during the third quarter of 2026.
Profile of SSE Holding SA
SSE Holding SA is a leading player in Europe in the civil explosives and drilling-blasting sector. Founded over 125 years ago, the group generates a revenue of approximately 135 million Swiss francs, equivalent to about 151 million euros, in Central Europe. SSE holds a leading position, ranked first or second in the market in Switzerland, Germany, Poland, Czech Republic, Slovakia, and Romania, all countries where EPC Group currently has no activities. The group is also established in Sweden. This geographical complementarity is a key element of the proposed merger. Like EPC Group, SSE relies on a service-based approach to drilling-blasting, which accounts for over 40% of the revenue from the activities being contributed, enhancing the strategic alignment between the two entities.
Strategic Implications of the Merger
The merger between EPC Group and SSE Holding SA is part of a strategy of combination and partnership aimed at consolidating EPC Group’s global position by propelling it to a leadership role in the European civil explosives market. Both companies aim to aggressively develop the new entity over the coming years, combining organic growth and acquisitions, with the goal of entering the top 5 global players. Given the cash levels and strong cash-flow generation of both companies, the new entity would significantly strengthen its financial structure, in line with these development goals. EPC Group reported a revenue exceeding 550 million euros in 2024 and employs over 2,900 staff across its 44 subsidiaries in more than 29 countries.
