Target Information

The FRANCIA Group specializes in the production of value-added technical plastic components for various industrial sectors. Since its acquisition in 2016 by Ivan Audouard and his team, the company has experienced significant growth, doubling its revenue from €4 million to €10 million. FRANCIA is committed to meeting its clients' stringent quality and innovation requirements.

With its recent capacity expansion at the production site, FRANCIA aims to strengthen its position in the market and enhance its offerings to clients. The partnership with ALTIS Capital is expected to facilitate this growth, blending both organic and strategic acquisitions to support the company's evolving needs.

Industry Overview in France

The industrial sector in France, while historically robust, is currently facing challenges due to fragmentation and the need for modernization. The French government has been advocating for the reindustrialization of the economy, focusing on enhancing competitiveness and sustainability within the industry. Key initiatives include promoting technological innovation and transforming manufacturing processes to reduce carbon footprints.

In the Auvergne Rhône-Alpes region, where FRANCIA operates, the industrial landscape showcases a concentration of diverse manufacturing capabilities, including aerospace, automotive, and advanced materials. This area is not only a hub for traditional manufacturing but also a breeding ground for innovative industrial practices, contributing significantly to regional growth and employment.

Furthermore, there's an increasing demand for low-impact production processes and sustainable materials, which provides opportunities for companies like FRANCIA that focus on advanced, eco-friendly manufacturing systems. The alignment of their products with these market trends positions them favorably to capitalize on emerging opportunities.

Rationale Behind the Deal

This investment marks a pivotal step in FRANCIA's growth strategy, as ALTIS Capital, through its FAB AURA-BFC fund, aims to empower regional businesses in scaling their operations. The partnership is intended to leverage ALTIS Capital's expertise in industry and small-to-medium enterprises (SMEs) to bolster FRANCIA's ongoing industrial journey.

ALTIS Capital's backing will facilitate not only financial investment but also strategic guidance, reinforcing FRANCIA’s goal of enhancing its production capacity and expanding its market share through both internal growth and targeted acquisitions.

Investor Information

ALTIS Capital is an independent management firm based in Lyon, dedicated to private equity in the industrial sector. The firm has established the FAB AURA-BFC fund in collaboration with the Auvergne Rhône-Alpes Region to support the reindustrialization of local economies and foster sustainable industrial champions.

With a keen focus on the fragmented fabric of the French industrial landscape, ALTIS Capital aims to finance regional companies in their innovation strategies and the decarbonization of industrial processes. Their approach combines minority investment with active support, leveraging a team of industry experts and former SME leaders to guide portfolio companies through significant growth phases.

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The recent partnership between FRANCIA and ALTIS Capital presents a promising investment opportunity, primarily due to FRANCIA's notable growth trajectory and strategic positioning in the plastics sector. With the market trends trending towards sustainability and innovation, FRANCIA's commitment to quality and its expansion plans align well with investor interests.

Moreover, ALTIS Capital's focus on industries and regional businesses provides a strong support system for FRANCIA, enhancing its chances of successful scaling and transformation. The involvement of experienced partners in ALTIS Capital will likely facilitate operational efficiencies and strategic initiatives that could yield positive returns on investment.

Overall, this investment not only aids FRANCIA in realizing its ambitions but also contributes to the broader goal of revitalizing industrial capabilities in France. As such, it represents a strategic move with potential for robust performance, affirming its viability as a sound investment.

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