Information on the Target

Aucamville, July 24, 2025 – LHERS, a small and medium-sized enterprise (SME) based in Toulouse, specializes in the manufacture of precision mechanical components. This strategic operation signifies the entry of Bpifrance into LHERS' capital structure, aimed at supporting the company’s growth both in France and the United States.

LHERS has established itself as a leading industrial player in the Toulouse region, making significant contributions to sectors including aeronautics, space, defense, and medical applications. The company supplies high-precision parts for small and medium series to esteemed clients, and has been a primary subcontractor in the space industry working closely with Airbus for seven years. In 2024, LHERS took a substantial step in its development by setting up a new subsidiary in Florida, USA, which will start operations in September 2025. This new facility of 500 square meters allows the company to address local clients' needs, especially those of Airbus, Safran, and Beyond Gravity, with plans to hire twelve new employees by the end of 2026.

Industry Overview in France

The French industrial sector, particularly in high-tech industries such as aerospace and defense, is experiencing robust growth, driven by advancements in technology and increasing demand for innovative solutions. France's strategic position in the EU and its investment in research and development give French companies a competitive edge on the global stage.

Aeronautics remains one of France’s cornerstone industries, propelled by major players like Airbus and Safran, both of which prioritize precision and advanced engineering. The French government’s commitment to fostering innovation through funding and infrastructure development further bolsters this industry, making it an attractive area for investment.

Additionally, the recent trends towards increased sustainability and environmental consciousness are reshaping the aerospace and defense industries. Companies are increasingly expected to demonstrate their commitment to eco-friendly practices and innovation in their production processes, leading to new opportunities for industrial SMEs that adapt to these changes.

The growing defense sector also points to robust market possibilities for SMEs specializing in precision components, as governments around the world increase their defense budgets in response to rising global tensions. This context offers substantial prospects for growth and expansion in both domestic and international markets.

The Rationale Behind the Deal

Bpifrance's investment of two million euros into LHERS is a strategic move to facilitate the company's growth initiatives. This partnership seeks to enhance LHERS’ market presence in France while supporting its international expansion in the US. The backing from a recognized institutional investor like Bpifrance signals confidence in LHERS’ capabilities and long-term potential in high-demand sectors.

With this financial support, LHERS aims to not only strengthen its operational capacity to meet the needs of existing customers but also to attract new clients, thereby solidifying its market position. The partnership is key to navigating the challenges of international expansion and tapping into new opportunities for scaling operations effectively.

Information About the Investor

Bpifrance, a public investment bank in France, plays a crucial role in providing funding and support to SMEs and mid-cap companies. It aims to stimulate innovation and economic growth by funding projects that promote development and competitiveness in strategic sectors.

Under the leadership of Arnaud Despoisse, the firm is focused on partnering with innovative companies capable of establishing themselves as key industry players. Bpifrance's support is instrumental for companies like LHERS, which are poised for significant growth in dynamic and competitive markets.

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This investment appears to be a sound and strategic move for both LHERS and Bpifrance. LHERS has demonstrated a solid track record in precision manufacturing and has established crucial partnerships within high-growth sectors such as aerospace and defense. Bpifrance's backing will likely enhance LHERS' ability to scale operations and effectively penetrate the US market, particularly with the establishment of their new Floridian subsidiary.

Moreover, the increased focus on aerospace and defense initiatives within Europe and beyond provides a fertile ground for LHERS' expansion. Bpifrance's financial support can enhance LHERS' R&D capabilities, allowing for the continuous innovation necessary to remain competitive in these rapidly evolving industries.

Furthermore, with the added workforce projected to be hired within the next couple of years, LHERS is set to capitalize on growth opportunities. This reflects a commitment to not only local economic development in France but also a proactive approach to meeting the demands of international clients.

In conclusion, this partnership could signify a robust trajectory for LHERS, potentially leading to increased revenue, market share, and global presence in precision manufacturing. The investment aligns with the strategic interests of both parties and is likely to yield favorable outcomes in the long run.

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