Activa-backed Mecadaq acquires Marignier

The deal comes six months after Activa entered the group, creating a consolidation platform in the aeronautical sub-contracting sector.

The operation was financed by a bank acquisition finance facility arranged by Activa during the OBO organised alongside Mecadaq's management team in December 2015, through which the company's capital was equally divided (50% each) between management and investor.

Mecadaq has also taken over Marignier's debt, amounting to €2.5m, a source close to the deal revealed. 

Mecadaq declared it is currently in talks with several other sub-contractors for other potential bolt-ons, intended to help it increase its size and productivity, and strengthen its partnerships with large aeronautical manufacturing groups.

In January 2016, unquote" reported that talks were underway to buy three companies, among which two were in the €5-7m revenue bracket (Marignier is likely to be one of these), and a third with €30m of sales.

In recent years, Marignier's revenues have grown mainly thanks to partnerships with significant groups such as Zodiac Aerospace, Somfy, Dura Automotive, Alkan and Hutchinson, the company reports. Mecadaq will therefore benefit from Marignier's client portfolio.

Previous funding
In January 2016, Activa, via its Activa Capital III fund, backed the OBO of Mecadaq, with plans to set up a build-up platform within the aeronautical manufacturing segment in France. The GP's investment fell within the fund's €10-30m equity ticket, unquote'' reported at the time. Mecadaq's capital was split almost equally between the GP and the company's current CEO Julien Dubecq.

Dubecq almost fully controlled Mecadaq before the deal as he was the sole shareholder alongside his father and two members of the management team. As part of the OBO, the two managers re-invested to stay as minority owners alongside two other colleagues.

A capex line equivalent to 2x Mecadaq's EBITDA was set up as part of the transaction, with larger assets likely to follow in the future, the GP said. The OBO was additionally supported by a two-tranche senior facility supplied by Societe Generale, equivalent to 2x EBITDA.

Company
Located in the Arve Valley, Marignier is an independent subsidiary of the industrial group RBDH. It currently generates an €8m turnover, and employs around 400 people.

Mecadaq is a group specialised in the production and assembly of precision-made mechanical parts for aeronautical manufacturers. It manufactures aircraft doors for civilian aircraft makers Airbus and Boeing, among other products. Other clients include Dassault Aviation, Stelia Aerospace and NYSE Euronext-listed Apollo-backed Groupe Latécoère.

Founded in 1971 and headquartered in Tarnos, the business employs 100 staff across the production sites in Tarnos, Pessac and Santa Ana, California. The company most recently posted €20m in turnover.

People
Activa Capital – Christophe Parier (partner); Benjamin Moreau (investment director); David Quatrepoint (analyst).
Mecadaq – Julien Dubecq (CEO).

Advisers
Equity – Axeans, Franck Herbaux, Giovanni Drago (commercial due diligence); Advance Capital, Olivier Poncin, Corentin Thevenon (financial due diligence); LL Berg, Grine Lahreche, Christophe Bornes (legal).

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