An uplifting partnership

Transcription

1 June 2017 FRECHE and CM-CIC Investissement An uplifting partnership Groupe Crédit Mutuel-CM11

2 The Freche group has been based in Southeast France for more than 50 years and is one of the region s leading players in equipment rental to construction companies. The family-owned group is headed by Eric and Laurence Freche, who represent the third generation of family managers. Laurence et Eric Freche

3 FRECHE and CM-CIC Investissement: a secure base for growth. How has the company developed over time? Laurence Freche: My grandfather founded the company in Vitrolles in 1962, renting out forklift trucks. The business expanded to include scaffolding in the 1970s. We started renting out access platforms in 1980, and we opened our first branch in Toulon in In 1999, we started our construction equipment rental business. In 2005, Freche Location embarked on a sustained phase of development, with the result that we now have around 20 branches in Southeast France. We serve the building, public works and manufacturing industries. Two thirds of our customers are SMEs. The other third are large construction groups with which we have framework agreements. How do you stand out in this highly competitive market? Eric Freche: Our market position is that of an independent regional rental company. In this segment and in our region, we are known for having one of the most modern fleets because of our strategy of investing constantly in our equipment. We also stand out through the quality of our service. For example, we organise night-time transportation so that our customers can have their equipment available on-site at the start of their working day. What are your main areas of development? E. F : Our growth strategy is focused on increasing our regional coverage, because we operate in a business where you have to be close to customers and worksites. We have target development areas and we are expanding as market opportunities arise. The opening of a new branch always depends on available land and human resources. We also watch very closely for acquisition opportunities, which is how we acquired FBL in That purchase enabled us to extend our activities, but also to step up our diversification in the manufacturing sector. We are also on the lookout for international opportunities. This ambitious development is based on our ability to draw people together and offer an identical level of service across all branches, with a shared business culture. You are also very committed to being a family-owned group. L. F.: That s a key part of our development. We operate in a fast-moving market that is seeing consolidation, and being familyowned ensures stability. It allows us to forge genuinely close ties with our customers and staff. My brother and I are lucky enough to complement each other very well and

4 to be managing the group together. Eric joined the company in 1994 and is now Chairman, in charge of development and the commercial division. I arrived in 2005 after a career in banking. I am CEO and I handle the administrative, financial and workforce-related aspects. What role do investors play in this family-owned structure? E. F.: When we acquired FBL in 2015, our partnership with CM-CIC Investissement gave us a fantastic opportunity to expand while bolstering our structure. We were impressed not only by what they were offering, but also by the human dimension and the ability of our contacts at CM- CIC Investissement to understand our business culture. They don t just provide us with capital, but also highquality support that helps us to build our networks. 18 branches 170 employees 27 million of revenue

5 FRECHE as seen by Laurent Vasselin, CM-CIC Investissement. Laurent Vasselin The Freche group is one of the leading independent companies renting out lifting and public works equipment in Southern France. It has a network of around 20 branches and a large fleet of modern, high-performance machines. In 2015, when Freche wanted to acquire FBL a company specialising in renting equipment to manufacturing customers CM-CIC Investissement invested into Freche to enable it to take this important step in its development. We were impressed by the company s two-pronged management team consisting of Laurence and Eric Freche: they are both excellent professionals, their profiles make them a very good fit and they have great people skills that are acknowledged by their teams. They want to develop the business by continuing to increase coverage in France and by seizing acquisition opportunities in France and abroad. CM-CIC Investissement shares the values of Freche s management team and we are supporting this outstanding family company with our investor perspective, our experience in business development and our equity financing capacity.

6 FULLY COMMITTED TO YOU Explorer de nouveaux territoires, aller plus haut, aller plus loin... Chez CM-CIC Innovation, nous croyons aux chefs d entreprise qui osent. Quels que soient leurs objectifs de Exploring new territories, aiming higher, going farther... At CM-CIC développement, nous accompagnons, sur fonds propres Investissement, we believe in business leaders who are entrepreneurs. et We dans provide la long-term durée, les support projets and equity technologiques financing to facilitate de plus the de 30 projects sociétés of over à 400 fort companies potentiel, with dans a range le of cadre development d un véritable objectives, as part of genuine partnerships based on mutual trust. partenariat basé sur la confiance mutuelle. TheLINKS.fr - RCS Nantes B Juin Crédits photos : Getty Images - FRECHE. CM-CIC Investissement - Lyon Espace Cordeliers - 2, rue Président Carnot Lyon Tél Paris Lyon Nantes Bordeaux Lille Strasbourg Montréal Boston New York Francfort Londres Genève Zurich Follow us on Head office 28 avenue de l Opéra PARIS Groupe Crédit Mutuel-CM11