Target Information

Hivest Capital has successfully acquired 100% of Safran's Cargo and Catering activities, leading to the establishment of a new entity known as the Cabin & Cargo Equipment Group ('CCE Group'). Klaus Hofmann has been appointed as the CEO of this new group, which will manage the previously independent operations of AviusULD and Driessen. AviusULD specializes in the production and distribution of Unit Load Devices (ULDs), which are crucial for transporting air freight. With a track record of over 700,000 ULDs sold, AviusULD commands a significant presence in the global market.

Driessen, now part of CCE Group, specializes in catering equipment for airlines and rail companies, producing items such as trolleys and containers. The company's extensive experience, with over 650,000 units currently in service, positions it as a global leader from day one. CCE Group, which employs approximately 1,500 staff and is headquartered in Europe, focuses on innovative solutions, including advanced products like the Class-D fire-resistant container.

Industry Overview

The aerospace equipment industry in France is notably dynamic and innovative, driven by a strong emphasis on technology and sustainability. It encompasses a wide range of areas, including aircraft manufacturing, aeronautical engineering, and the supply of specialized equipment such as that provided by CCE Group. France is home to several key players in the aerospace sector, benefiting from a skilled workforce and robust research and development capabilities.

Moreover, the aerospace equipment market is experiencing rapid growth as airlines seek to enhance operational efficiency and meet evolving customer expectations. This trend promotes increased investments in R&D to foster innovation and improve product offerings. The demand for ULDs and catering equipment will likely rise as airlines strive to enhance the passenger experience while optimizing their logistics.

The industry is also characterized by its global reach, with significant opportunities for expansion into emerging markets. French aerospace firms, including CCE Group, are well-positioned to leverage these opportunities due to their established international networks and strong brand recognition. Enhanced investments in digital technologies and sustainable practices are anticipated to shape the industry's future, ensuring long-term growth prospects.

Rationale Behind the Deal

The acquisition of Safran's Cargo and Catering activities aligns with Hivest Capital's strategy to transform CCE Group into a leading global supplier of specialized cabin and cargo equipment for the aerospace industry. By bringing together the expertise of AviusULD and Driessen, the deal creates a robust platform capable of delivering innovative solutions tailored to the unique needs of clients.

The partnership between Hivest Capital and the existing management team positions CCE Group to capitalize on market demand, enhance product development capabilities, and undertake strategic growth initiatives. This strategic consolidation aims to unlock synergies and streamline operations, driving efficiency and market responsiveness.

Investor Information

Hivest Capital is an independent French private equity firm managing approximately €500 million in assets. Recognized by the Autorité des Marchés Financiers, Hivest Capital focuses on investments in small and mid-cap companies with an annual turnover ranging between €50 million to €500 million, particularly in buyout and capital expansion scenarios. The firm is dedicated to fostering growth and enhancing operational performance in its portfolio companies.

By investing in CCE Group, Hivest Capital aims to leverage its expertise to facilitate transformative strategies that will unlock the full potential of the newly formed entity. Through innovative approaches and ambitious expansion plans, Hivest Capital seeks to position CCE Group as a leader in the niche market of cabin and cargo equipment solutions.

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Given the strategic alignment of Hivest Capital's acquisition of Safran’s Cargo and Catering activities, this investment appears to be well-timed and potentially rewarding. The consolidation of AviusULD and Driessen under CCE Group creates substantial opportunities for innovation and market penetration. Both entities come with established reputations and extensive product offerings, which will likely enhance market competitiveness.

The growing demand for ULDs and catering solutions in the aerospace sector, coupled with the expected advancements in technology and sustainability, aligns with the investment trends seen across the industry. Hivest Capital’s commitment to supporting CCE Group's growth initiatives through focused R&D and external expansion could yield significant returns in the coming years.

Moreover, by harnessing the expertise of the existing management team, particularly with leaders like Klaus Hofmann and Jerry van Vive at the helm, the team is well-positioned to meet evolving client needs while driving profitability. CCE Group’s robust industry presence, combined with Hivest Capital’s strategic guidance, underscores the potential for long-term success and resilience in a competitive market.

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