For over a decade Quadient ($QDT.PA) has been one of the most discussed European companies within the value investing community: so far, it has rather been the classic “widow-maker”. But it’s still held by at least a couple of funds that I judge as good investors, so I want to give them the benefit of doubt.
Formerly known as Neopost, Quadient is a €650 million France-based company offering mail-related solutions, such as software and hardware for mail processing, parcel lockers and also a cloud-based business communication platform.
Originally founded in 1924 in the UK, in 1981 Neopost came under Alcatel. Today’s company was then carved-out in 1992 with a LBO led by Fonds Partneraires; a second LBO by BC Partners was completed in 1997 and Neopost was listed on the Paris Stock Exchange in 1999.
An unlikely trio of shareholders has major stakes in the company:
Vesa Equity Investment (15%): Vesa is Daniel Křetínský’s (a Czech billionaire) investment vehicle, a private investment firm focused on making long-term, strategic investments in publicly traded companies with a very contrarian approach: in addition to Quadient, it is currently the largest shareholder in PostNL (30%), RoyalMail / International Distribution Services (27%), FNAC Darty (29%) and the second largest in Foot Locker (12%) and J Sainsbury (10%) (more on them later)
Teleios Capital Partners (10%): also a specialist private investment management firm
Bpifrance Participations (8%): a French public investment bank (bpi stands for “Banque publique d'investissement”) and also the French agency for innovation, delivering massive programs to innovative entrepreneurs.
The rest is free float. Both Vesa and Bpifrance entered the shareholders’ register in 2023 (Bpifrance also got a board seat): Vesa bought in November 2023 at a price more or less in line with the current one.