The roll-up thesis: durable growth, margin expansion, recurring-revenue quality, prudent leverage and disciplined capital allocation.
The roll-up thesis is proving out: 3 integrated cohorts delivered +57pts of EBITDA margin and leverage sits at 1.3x against the 5.5x covenant. The remaining value is in the 4 unintegrated cohorts — finish synergy capture before exit diligence prices it.
6 of 6 headline metrics improving vs prior · still off target: Revenue $8.90B vs $9.50B, EBITDA Margin 21.4% vs 22.0%, Rule of 40 39 vs 40
Sets deal capacity and refinancing risk.
4 of 7 cohorts sit below 80% synergy capture; integrated cohorts already show +57pts of margin — the same playbook is unbanked EBITDA until applied.
Hold management to 90-day synergy recovery plan; track at next board meeting.
Synergy at 78% of model; integration 80% complete.
Push subscription/Legrand Data Center Infrastructure Management attach on Integration installs.
Recurring 40% vs 45% strategic target; Integration BU dilutive.
Consistent top-line growth with steady margin expansion.
Proof of the roll-up: EBITDA uplift and synergy realization per acquired brand.
| Acquired brand | Year | Revenue | ARR | EBITDA uplift | Synergy | Status |
|---|---|---|---|---|---|---|
| BTicino | 2021 | $385.48M | $136.05M | 102.04%→158.73% (+56.68999999999998) | 92% | Integrated |
| USystems | 2021 | $249.43M | $90.7M | 90.7%→147.39% (+56.68999999999998) | 90% | Integrated |
| Netatmo | 2022 | $1088.41M | $589.55M | 124.71%→181.4% (+56.69000000000001) | 88% | Integrated |
| Legrand North America | 2023 | $657.58M | $215.41M | 113.38%→147.39% (+34.00999999999999) | 74% | In progress |
| Legrand India | 2024 | $464.84M | $158.73M | 102.04%→124.71% (+22.669999999999987) | 55% | In progress |
| Legrand Data Center Solutions | 2024 | $419.49M | $147.39M | 102.04%→136.05% (+34.010000000000005) | 78% | In progress |
| Legrand Retail | 2024 | $328.79M | $102.04M | 90.7%→102.04% (+11.340000000000003) | 40% | Early |
Integrated cohorts (AFA, Firecom, DavEd) show ~57pt EBITDA expansion post-integration; newer cohorts (ISC, Signet) remain early with synergy capture in progress.
Covenant headroom funds the continued M&A program; cash generation supports debt service.
High-materiality external signals and competitive M&A from the adapter feed.