Information on the Target

On June 1st, 2023, Hivest Capital, an independent private equity firm based in France, announced the acquisition of 100% of Safran's Cargo and Catering activities. This transaction led to the establishment of a new aerospace equipment entity, the Cabin & Cargo Equipment Group (CCE Group), which will oversee both cargo and catering functions. Klaus Hofmann, previously the Vice President of Safran Cabin Cargo, has been appointed as the CEO of CCE Group, while also managing the cargo operations now branded as AviusULD.

AviusULD specializes in the manufacture and distribution of Unit Load Devices (ULDs), essential for the transport of air freight. The company has a proven track record, having sold over 700,000 ULDs since its inception, positioning it as a significant global competitor in this sector. In parallel, the catering segment, which will now operate under the name Driessen, offers a comprehensive range of trolleys, containers, and other catering equipment for airlines and rail companies, boasting a fleet of over 650,000 units in service and establishing itself as a market leader.

Industry Overview in France

The aerospace industry in France is a critical segment of the national economy, known for its innovation, high-quality manufacturing, and a strong emphasis on safety and operational efficiency. France serves as a European hub for aerospace activities, encompassing manufacturers, suppliers, and service providers that cater globally. The country has witnessed robust growth in aerospace equipment, driven by the increasing demand for advanced technologies in air transport and logistics.

Within this context, the catering and cargo equipment sectors are rapidly evolving, adapting to new regulatory standards, and pushing for greater sustainability in operations. The competitive landscape is characterized by a few major players who dominate market share but also by an influx of agile SMEs that introduce innovative solutions tailored to changing customer needs.

Furthermore, investments in research and development have continued to be a priority for companies in this sector, leading to the development of more efficient and technologically advanced products. Initiatives such as partnerships between public and private entities are fostering advancements that promise to enhance operational capabilities and service delivery in the aerospace field.

As a result, the French aerospace equipment sector is expected to continue expanding, underscored by increasing global air traffic demand and the ongoing push for operational efficiencies.

The Rationale Behind the Deal

This acquisition by Hivest Capital aligns with the firm’s strategic goal to establish CCE Group as a leading global supplier in the niche market of cabin and cargo equipment solutions for the aerospace industry. By consolidating Safran’s successful cargo and catering activities, Hivest aims to leverage existing client relationships and innovate new products, enhancing service delivery and operational flexibility.

The involvement of an experienced management team, along with focused product development and targeted growth initiatives, is designed to quicken the pace of transformation and position CCE Group as a formidable competitor in the international market.

Information About the Investor

Hivest Capital is a private equity firm managing approximately €500 million, focusing on investing in small to medium-sized enterprises (SMEs) and mid-cap companies with annual revenues between €50 million and €500 million. Based in France and regulated by the Autorité des Marchés Financiers, Hivest Capital specializes in buyout or capital expansion projects aimed at realizing the full growth potential of its portfolio companies.

With a proven track record in implementing ambitious growth strategies and improving operational performance, Hivest Capital intends to bring its expertise to CCE Group, thereby enhancing its market position and operational capabilities in the aerospace sector.

View of Dealert

The acquisition of Safran’s Cargo and Catering activities by Hivest Capital emerges as a potentially strong investment opportunity. The formation of CCE Group holds promising prospects due to its immediate access to established products and client bases across the aerospace cargo and catering sectors.

Moreover, the leadership provided by Klaus Hofmann and Jerry van Vive, along with their extensive industry experience, positions the firm to capitalize on current market demands while driving innovation in product development. The move to create a singular entity focused on both cargo and catering underlines a strategic synergy that could prove advantageous in diversifying offerings and market outreach.

However, the success of this investment will heavily depend on the execution of Hivest's proposed growth strategies and how effectively CCE Group can adapt to the quick-changing demands of the aerospace market. The focus on innovation and operational efficiency will be critical as they aim to enhance their competitive edge on a global scale.

Overall, this acquisition represents both an ambitious and strategic effort to create a powerhouse in the aerospace equipment space, suggesting that Hivest Capital has identified a lucrative investment opportunity with substantial growth potential.

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