Private equity firm Activa Capital’s portfolio company Mecadaq, a provider of high precision manufacturing for the aerospace industry, has acquired Armoa, a specialist 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 EUR32 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 EUR50 million.
Based outside Paris, in Chanteloup-les-Vignes, with revenues of EUR18 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,” says 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 EUR50 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 clients 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.
