The injection of €60 million would help finance the restructuring of the Group and the modernization of the main production site at Arques, Nord-Pas-de-Calais, while supporting growth. This takeover offer is led by PHP, an American investment structure founded by Tim Gollin, a former associate of One Equity Partners (an investment branch of JP Morgan Chase), as well as Cédric Aymard and Didier Riebel in France, two specialists in business transformation.
A solid industrial project
Arc International’s recovery first requires a transformation of its industrial model. This is designed to sustainably improve the Arques factory’s competitiveness. In order to bring this about, PHP’s submitted takeover proposal, which is the best such proposal in terms of social concerns the company has received for a year, will, if it is accepted, provide for:
– maintaining the Group’s expertise and production in Arques,
– maintaining staff and production at their current levels,
– a full transformation of the mode of production, from a “push” model (driven by production) to a “pull” one (driven by client orders) with smaller production batches and an organization geared towards “lean manufacturing”,
– implementation of savings, especially through productivity investments and by reductions in stock, scrap etc.
Project based on a fund-raising of €60 million
This project will be structured around a fund-raising of €60 million, wholly invested in France, which is aimed at providing Arc International with the resources needed for its new model to be successful. The following will be provided:
– significant investments, aimed at upgrading plant and equipment at the Arques site,
– financing for social support measures within the context of reorganization projects linked to the transformation of Arc International.
Arc International’s creditors, national and local public authorities as well as other debtors have reached an agreement for the restructuring of Arc International’s historical debt. This restructuring will significantly improve the financial situation of the company.
A responsible social reorganization
Arc International’s situation and the scale of the transformation it has to achieve makes some staff reductions inevitable in order to make activities on the Arques site sustainable. Such reductions were already envisaged by the company, prior to the PHP proposal.
A new management team
Under the terms of this proposal, Tim Gollin, Cédric Aymard and Didier Riebel would take on operational responsibilities to accompany Arc International’s transformation alongside key managers of the group and members of the founding family.
Timescale
PHP’s offer still has to be discussed by certain interested parties.
Consultative procedures concerning the project will be led in parallel with employee representatives.
“By strengthening our Arques site, we are laying the foundations for a stronger company”, stated Xavier Ibled and Timothée Durand, representatives of the founding family and shareholders of Arc International. “It is essential that new investors accept to support our company, in order to ensure its future viability. At this crucial moment in the company’s history, they recognize its potential, expertise and the quality of its teams and employees: We are very proud that they have decided to support our company in its future development.”
“Arc International is an iconic French company”, commented Tim Gollin. “We strongly believe in the development potential of this company in France and abroad, through the unique know-how of its staff and the production of high-quality functional products with innovative design. Over and above the amount invested in France, with the cooperation of all local and national parties, as well as the financial support of creditors, Arc International will return to a healthy financial situation which will help to construct the building blocks of future growth.”
