Socomore

Socomore, the French manufacturer specialized in the preparation and surface-treatment products for the aerospace industry, has completed its fourth growth capital transaction, raising a total amount of €53.5 million. Crédit Mutuel Equity, a subsidiary of the Crédit Mutuel Alliance Fédérale group and leading shareholder since 2011, along with new investor Raise, are subscribing in equal parts to a €40 million capital increase in the holding company of Socomore's chairman, Frédéric Lescure. ACE Management, shareholder since 2013, and new investor Bpifrance are also strengthening Socomore's resources by investing €13.5 million. Frédéric Lescure is keeping control over the group.

Socomore is based in Vannes, France, has 250 employees and a turnover of €65 million expected for 2018. This transaction gives the group the necessary resources to reach a critical size as a global player in the aerospace industry by strengthening its international development, particularly in North America and Asia.

Founded in 1972, Socomore produces and sells speciality chemicals used to prepare, protect, treat and test metallic and composite materials used in new-generation aircrafts (fuselages, engine components etc.) and satellites. The company started its international expansion in 1999 and has now 19 subsidiaries and 6 production units around the world, in France, Ireland, USA, Canada, Brazil and China. The group generates 63% of its revenue outside France.

In a context of global market consolidation among aerospace-approved chemicals suppliers, Socomore has developed a strategy relying both on organic growth and acquisitions, mainly in the USA, along with business diversification.

The new funding round breaks down as follows:

• Crédit Mutuel Equity (formerly CM-CIC Investissement) reinvests €20 million, taking its total exposure to €26.3 million;
• Raise invests €20 million;
• the Aerofund III fund, managed by ACE Management, maintains its exposure at around €10 million;
• Bpifrance invests €3.5 million.

"I am delighted that Crédit Mutuel Equity and ACE Management renewed their trust in Socomore, and I would like to thank them for bringing to the table new investors with the arrival of Raise and Bpifrance," said Frédéric Lescure, Chairman and CEO. "This fourth fund-raising will allow us to invest in our production facilities and to finance future build-ups, in order to support the incredible ramp-up of our clients businesses and meet the related economic challenges."

"We have worked with Socomore for a long time, building a global business in a niche market of €2 billion, hardly competed by multinationals. We are pleased to lead this new growth capital transaction alongside the company's efficient and highly complementary management team, which has steered Socomore's constant growth to increase its revenue from €3 million to €65 million in the last 20 years," added Badri Ben Grine, Senior Principal at Crédit Mutuel Equity. "Considering the backlog of ten years of its main clients, Socomore has the opportunity to expand in a growing air transport and aircraft manufacturing market".

"At Raise, we support fast growing French companies led by talented management teams. Socomore is a perfect example. Today, through this structuring transaction, we are proud to support the company's management in realising and accelerating its ambitious growth projects," said Alexandre Gontcharov, Principal at Raise.

"We are very proud of the development led by Frédéric Lescure and all of his teams since we entered Socomore's capital in 2013, and also to take part in this new fund-raising. This transaction illustrates ACE Management's ability to support strategic industrial companies throughout all their development steps, as shown by our recent reinvestments in Rafaut, Nexteam and Duqueine," added Delphine Dinard, Partner at ACE Management.

Jean-Marie Fougeray, Principal at Bpifrance, said: "We are very happy to become a shareholder of Socomore. We have been supporting the group for several years. Indeed, it was a member of our SME accelerator before becoming part of our mid-cap accelerator. The transaction will enable Socomore to fly the flag for French manufacturing on the international stage."

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