Activa Capital has supported the Owner-BuyOut (OBO) of Mecadaq Group with what is the second investment by its new fund, Activa Capital Fund III.
Founded in 1971, Mecadaq is a family-owned company that successfully serves the Aerospace industry and is specialised in components for global aircraft manufacturers. Led by Julien Dubecq, the company has a hundred professionals working at thre sites: two in the South-west of France (Tarnos and Pessac) and one site in the USA (California). With a turnover of nearly EUR20 million, the group has a client base including major French contractors (including Dassault Aviation, Latécoère, Stelia Aerospace – Airbus Group) and international contractors (Primus International – PCC Group, Mitsubishi Heavy Industries, Tect Aerospace).
Within an underlying growth market, the aerospace subcontracting industry is likely to consolidate to better serve its end-customers. Mecadaq, which has doubled its turnover since 2012, has continuously invested in its production facilities in order to deliver the highest quality of service for its clients.
With this investment in Mecadaq Group, Activa Capital and Julien Dubecq wish to consolidate the market for aerospace subcontracting, particularly in precision manufacturing, with a view to reaching a turnover of EUR70 million to EUR100 million. Several companies are already in discussions to join the consolidation platform.
Julien Dubecq, President of Mecadaq, says: “After a phase of sustained organic growth in recent years, we wanted to partner with a shareholder able to support us in a new development phase of carrying out targeted build-up acquisitions. Activa Capital, thanks to its experience in successful consolidation strategies and its ability to support growth companies, has emerged as the ideal partner for Mecadaq Group.”
Christophe Parier, Partner of Activa Capital, says: “Activa Capital is delighted to accompany Julien Dubecq and his team in a consolidation phase of a highly fragmented market. The transaction was structured to allow Mecadaq Group to have significant financing capacity through our financial support as well as through the establishment of a dedicated financing line.”
low growth companies. In an environment where dividend cover is low, debt has risen and revenue growth is hard to find, we are confident in the ability of this Fund to deliver an attractive blend of a good initial yield alongside income and capital growth.”