Mecadaq Group, a leading provider of high precision manufacturing for the aerospace industry, has announced the acquisition of Hirschler Manufacturing Inc., a US based company specialised in hard metal machining. The acquisition is another step in Mecadaq’s consolidation strategy , reinforcing the subcontracting chain in the aerospace supply.

Based near Seattle, Washington, USA, with €9m in turnover, Hirschler Manufacturing Inc. produces high-precision mechanical parts made from hard metals such as titanium, stainless steel, and inconel. The company has been a strategic supplier for more than 50 years to large clients in aerospace such as Spirit AeroSystems, Mitsubishi Heavy Industries, or Boeing, which has given the company the “supplier silver award“.

By joining the Mecadaq Group, Hirschler Manufacturing brings its customer portfolio, a recognised know-how in producing critical, complex parts, and quality of service. The company is committed to integrating Mecadaq’s production activities located in California.

This is the third external growth operation in less than 24 months for the Mecadaq Group, bringing its consolidated revenue to nearly €60m and staff to 300 employees.“It is quite an accomplishment for our company with the opportunity to accelerate our growth in North America and also to work directly with “The Boeing Company” as a Tier 1 supplier of detail parts,” said Julien Dubecq, President of Mecadaq Group. “This marks also a major step for Mecadaq, celebrating 10 years anniversary since the first US branch opening.”

“This transaction will allow our Group to reach in just two and a half years the level of turnover we had expected in fiveyears,” added Benjamin Moreau, Partner of Activa Capital. “ In addition to this lead over our original business plan, this external growth transaction reinforces Mecadaq’s leadership position by giving us the potential for new organic growth outside of France.”

 

Deal Participants

Buyers

Mecadaq Group: Julien Dubecq

Activa Capital: Benjamin Moreau, Christophe Parier, David Quatrepoint

Fiscal and Financial Due Diligence: PWC (Andrew Miller, Lisa Jackson)

Legal Due Diligence: Drinker, Biddle & Reath (Luc Attlan, Rémy Nshimiyimana)

Environmental Due Diligence:  ERM (Gary Walters)

Corporate Lawyers USA: Drinker, Biddle & Reath (Luc Attlan,

Rémy Nshimiyimana)

Corporate Lawyers France: Hoche (Grine Lahreche, Christophe Bornes)

Financial Advice: DC Advisory (Alexis Baron)

Strategic Advice: Aero Invest Consulting (Alinh Hoang)

Financing Bank: Société Générale (Marie-Laure de la Grandière)

 

Sellers

Hirschler Manufacturing: Gerald Hirschler

Financial Advisors: First Hill Partners (Michael Black)

Lawyers: Stokes Law (William Neal)

 

About Mecadaq Group

Mecadaq is an industrial group specialised in the manufacturing and assembling of high-precision mechanical parts for the world’s leading aerospace companies. With turnover of nearly €60m, Mecadaq has 300 employees in 7 sites: 4 sites in France (Tarnos, Pessac, Marignier and Chanteloup-les -Vignes, 2 sites in the US(California and Washington), 1 site in Tunisia(Tunis).

Learn more about Mecadaq at mecadaq.com or on Twitter @MecadaqGroup.

About Activa Capital

Activa Capital is a leading French mid-market private equity firm. Activa Capital manages over €500m of private equity funds on behalf of a wide range of institutional investors. Activa Capital partners with ambitious mid-sized French companies, valued at €20m to €200m, seeking to accelerate their growth and their international footprint.

Learn more about Activa Capital at activacapital.com or on Twitter@activacapital.

Activa Capital Media Contacts

Steele & Holt

Media Contacts

Benjamin Moreau

–

Partner

Daphné Claude

+33 1 43 12 50 12

+33 6 66 58 81 92

benjamin.moreau@activacapital.com

daphne@steeleandholt.com

Christelle Piatto

–

Communications Manager

Claire Guermond

+33 1 43 12 50 12

+33 6 31 92 22 82

christelle.piatto@activacapital.com

claire@steeleandholt.com

 

 

Activa Capital, an independent French private equity firm, and Mecadaq, a leading provider of high precision manufacturing for the aerospace industry, announce the acquisition of Armoa, a company specialised in high precision machining. The acquisition takes place 18 months after the creation by Activa Capital of a consolidation platform in aerospace subcontracting.

This is the second significant build-up for Mecadaq, which already generates revenues of €32 million in aeronautic subcontracting, primarily in the area of machining of aero structure parts for civil aircraft. Financed with bank debt and additional capital provided by Activa Capital and Mecadaq’s management, the acquisition will increase the group’s revenues to over €50 million. Based outside Paris, in Chanteloup -les-Vignes, with revenues of €18 million, Armoa is a family-owned business that for 40 years has specialised in providing high precision machining of small and medium size aluminium aero structure parts.

The company’s excellence in this area has made it the manufacturer of choice for top clients in the aeronautics sector, such as Stelia (Airbus), Daher, and Thalès. “We are delighted to bring on board the operational excellence of the Armoa team,” said Julien Dubecq, President of Mecadaq.

“In addition to being complementary on industrial grounds, this acquisition reinforces our organisation by Business Unit (milling, turning, gear and spline machining, assembly).

Since our clients are constantly searching for ways to optimise their supply chain, this new industrial organisation will allow us to develop our commercial relationships with large clients in the aeronautic sector.” “This operation, the second step in our consolidation program undertaken in early 2016, will bring Mecadaq to the symbolic level of €50 million in revenues.

With four specialised sites in France and two abroad, Mecadaq has the critical size that will make it possible to reinforce its position among large partners and lients in aeronautics,” added Benjamin Moreau, Partner, Activa Capital.

Mecadaq Group is currently holding discussions with several other Players in aeronautics subcontracting. The priority is to target further acquisitions both in France and overseas, which could be financed with new acquisition lines put in place this summer.

 

About Mecadaq Group

Mecadaq is specialisedin the production and assembly of precision-made mechanical parts for the world’s leading aeronautical manufacturers. Prior to this build-up, Mecadaq had turnover of nearly €30 million, employs 300 professionals spread across its four sites: three sites in France (Tarnos, Pessac and Marignier) and one site in the US (California). To find out more about the company, please visit the website at Mecadaq.com or on Twitter@MecadaqGroup.

About Activa Capital

Activa Capital is a leading French mid-market private equity firm. Activa Capital manages over €500m of assets on behalf of a wide range of institutional investors. Activa Capital partners with ambitious mid-sized French companies, valued at €30m to €200m, seeking to accelerate their growth and their international footprint. Learn more about Activa Capital at activacapital.comor on Twitter @activacapital

 

 

The company will use the money to produce a finished product and to start selling.

Sally R, founded in 2016, is developing a new system for climate management in real estate. By combining technology for closed systems for space stations using its own technology, Sally R may provide an air cleaner that provides a cleaner and better air with minimal power consumption.

Today, taking the climate systems in air from the outside and then sends out the excess. This requires a lot of energy, because the outside air must be filtered, heated or cooled depending on outdoor conditions. In space there is no outdoor air and where the air must be treated and recycled.

Sally R’s algorithm combines both systems and determine how much air should be based on how much should be recycled and how much should be cleaned using space technology.

This is a major improvement over the current system, where you have to choose between air quality and energy conservation. If you reduce the ventilation energy is saved, but get less air. Emphasis is however on cleaner air, as in an operating room, it draws more power.

With Sally Rs solution to get both.

– Given that buildings account for 1/3 of the world’s energy consumption, we see great potential for the company, says Jenny Jansson, investment manager at Almi Invest. Sally R has a very good team and a great product for a growing market that requires less energy.

The company will now apply for a patent and produce a first marketable version of the product.

– This investment will allow us to take the next step, says Sally R’s CEO and founder Viktor Kjellberg. Air pollution in the world’s a big problem and where we hope to make a difference.

EQT Infrastructure II to acquire the global leader in pooling, management, maintenance and repair of unit load devices for the aviation industry

Existing leadership team to remain in place and CHEP Aerospace Solutions to be rebranded to have its own unique identity

EQT Infrastructure committed to actively support the development of CHEP Aerospace Solutions through an industrial board of directors including senior leaders with aviation expertise

EQT Infrastructure II (“EQT Infrastructure” or “EQT”) has announced today to acquire CHEP Aerospace Solutions (the “Company”) from Brambles, a global supply-chain logistics provider. CHEP Aerospace Solutions is the global leader in pooling, management, maintenance and repair of unit load devices (ULDs) for the aviation industry. ULDs are containers and pallets used for transportation of cargo and baggage on aircraft and constitute a mission critical part of the aviation infrastructure.

CHEP Aerospace Solutions was established by Brambles in 2011 following the acquisition and integration of four leading ULD solutions companies. Through subsequent acquisitions and Brambles’ pooling expertise, the Company has become the global leader in pooling, management, maintenance and repair of ULDs for the aviation industry. Today, the Company generates around USD 80 million in revenues, owns and manages approximately 100,000 ULDs, and serves more than 90 airlines across an unparalleled network of 48 global services centers and 420 airports, supported by over 550 expert team members. EQT will support the continued development of CHEP Aerospace Solutions and will actively assist the company in capturing new growth opportunities.

The existing CHEP Aerospace leadership team will remain in place and will continue to focus on providing its world class customer service and delivering the very best solutions that create sustainable value for its clients. The Company is headquartered in Switzerland, along with regional operations centers in the United Kingdom, Thailand and the USA, in addition to global services centers in Europe, Middle East and Africa, Asia Pacific and the Americas. As part of the transaction, CHEP Aerospace Solutions will eventually be rebranded to have its own unique identity.

CHEP Aerospace Solutions President, Dr. Ludwig Bertsch, said: “We would like to place on record our thanks to the Brambles team whose support and expertise has enabled us to develop the world’s leading ULD management network. We are excited to join EQT Infrastructure, one of the world’s most respected infrastructure funds, which combines the very best people with the industry expertise in infrastructure management that will allow us to continue to grow and provide smarter solutions and unparalleled customer service to the aviation industry.”

Ulrich Köllensperger, Director at EQT Partners and Investment Advisor to EQT Infrastructure, said: “CHEP Aerospace Solutions provides critical infrastructure and services to the aviation industry and fits well with the EQT Infrastructure strategy of investing in medium sized operating infrastructure companies with opportunities for additional growth and development. The Company has a proven business model, an impressive customer base and a promising pipeline of prospective airline clients. The industrial board of directors including senior leaders with aviation expertise will support CHEP Aerospace Solutions in growing its asset base and offer pooling, management, maintenance and repair to more airlines globally.”

Tom Gorman, CEO of Brambles, said: “The launch of CHEP Aerospace Solutions in 2011 was part of Brambles’ strategy of leveraging its asset management and supply chain expertise to deliver value to customers across new industry verticals. Over the past five years, we have built a highly successful global business that now partners many of the world’s leading airlines. We are confident that the future growth of the Aerospace business will be well served under the ownership of EQT Infrastructure which has a dedicated focus on infrastructure and related services, with a proven track record of success. On behalf of everyone at Brambles, I would like to thank the CHEP Aerospace Solutions team for their commitment to becoming the industry-leaders they are today and we wish them every success for the future.”

The transaction is expected to close during November 2016.

Contacts:

Ulrich Köllensperger, Director at EQT Partners, Investment Advisor to EQT Infrastructure, +41 44 266 6800

Kerstin Danasten, EQT Press Contact, +46 8 506 55 334

About EQT

EQT is a leading global private equity group with approximately EUR 30 billion in raised capital. EQT Funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 15 billion and approximately 100,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

For further information, please visit: www.eqtpartners.com

About CHEP Aerospace Solutions

CHEP Aerospace Solutions owns and manages the world’s largest independent fleet of approximately 100,000 unit load devices (ULDs), for use in the aviation industry, and owns the largest global network for the maintenance and repair of ULDs and galley carts. The company focuses on the outsourced management and associated services for aviation containers, pallets and inflight food service equipment, and serves over 90 airlines through a network of more than 420 airports, 14 regional offices and 48 certified repair stations, supported by more than 550 colleagues.

For further information, please visit www.chep.com/aerospace

About Brambles

Brambles Limited (ASX: BXB) is a supply-chain logistics company operating primarily through the CHEP and IFCO brands. Brambles enhances performance for customers by helping them transport goods through their supply chains more efficiently, sustainably and safely. The Group’s primary activity is the provision of reusable unit-load equipment such as pallets, crates and containers for shared use by multiple participants throughout the supply chain, under a model known as “pooling”. Brambles primarily serves the fast-moving consumer goods (e.g. dry food, grocery, and health and personal care), fresh produce, beverage, retail and general manufacturing industries, counting many of the world’s best-known brands among its customers. The Group also operates specialist container logistics businesses serving the automotive, aerospace and oil and gas sectors. Brambles has its headquarters in Sydney, Australia, but operates in more than 60 countries, with its largest operations in North America and Western Europe. Brambles employs more than 14,500 people and owns more than 550 million pallets, crates and containers through a network of more than 850 service centres.

For further information, please visit www.brambles.com