A far-reaching partnership

Transcription

1 June 2015 SERGE FERRARI et CM-CIC Investissement A far-reaching partnership Monumenta Anish Kapoor Leviathan - Photo Didier Plowy

2 From the roofs of stadiums built for the London Olympic Games to Anish Kapoor s creations, Serge Ferrari s flexible composite materials can be found everywhere. The company is popular among both major manufacturing groups and tradesmen in the building industry, and it has developed a reputation as a high-end pioneer in over 80 countries. Sébastien Ferrari, son of the founder, has been Chairman and CEO of the company since 1992, and he spoke to us about this family success story. Sébastien Ferrari SIAAP Valenton- Yves Chauvin

3 SERGE FERRARI and CM-CIC Investissement: hitting the heights. How did the company come about? Sébastien Ferrari: In 1973, my father Serge Ferrari left his family company, which specialised in technical textiles, to set up his own business. His plan was to develop his own prestressed Précontraint technology, which allows the creation of composite membranes with a dimensional stability and longevity that had never before been seen. His products saw immediate interest in the architecture market, particularly for stadium roof covers. The product range has expanded considerably since then. Today, we serve three main markets: architecture (lightweight architecture, solar protection, acoustic solutions, watertight breathable membranes), specialty materials for professionals (ranging from modular structures to visual communication media) and consumer (composite fabrics for outdoor furniture, yachting). So innovation is central to your business model? S.F.: It s one of the key drivers of our success. Every year, we spend more than 3% of our revenue on R&D, and R&D also accounts for 5% of our workforce. Our innovation can be seen in the many patents we hold, which give us a competitive edge, and in our industrial sites such our recycling plant in Ferrara, Italy. That plant, which we operate in partnership with Solvay, is the only one of its kind in the world, and enables us to recover our products at the end of their lives. We turn membranes into high-quality polyester fibres and PVC granules. The other key driver of your success being international expansion? S.F.: International markets quickly became crucial to our development, because we operate in fairly narrow niche markets. We need pan- European and indeed global scale to ensure that all of our business segments are profitable. Since the 1980s, we have exported our products to three new countries every year. Our international ambitions also lay behind our IPO in 2014, which was designed to give us the resources to go from being a leading European player to a leading global player. What does the future hold in your view? S.F.: As a listed company, we need to stick to our ambitious business plan, but we are optimistic. Our materials are lightweight and durable and can be recycled at the end of

4 Station de métro-santiago-chili- Cidelsa their lives, which makes them very popular, particularly in our architecture and consumer markets. We believe that total sales in these two markets are likely to grow from 3 billion to 4 billion by And that does not take into account new applications in which our flexible materials are now rivalling rigid materials like wood, aluminium, steel and glass. What are your links with CM-CIC Investissement? S.F.: The relationship is both old and new, because we have banked with CIC for four generations. But for a long time, the company was 100% owned by the family and the idea that external investors might take an equity stake was taboo. In 2007, however, when the question of how to support our growth arose, we naturally turned to CM-CIC Investissement. Firstly, it bought a 2% stake via an initial capital increase, then it bought more equity ahead our IPO. As a shareholder, CM-CIC Investissement makes a very good companion, because it understands that investment comes before payback. It is now part of the family. 142 million of revenue in % outside France over 100 distributors

5 SERGE FERRARI as seen by Bertrand Ghez, CM-CIC Investissement. Bertrand Ghez We have had regular contact with the Serge Ferrari group for 25 years. We monitored its steady growth in the 1990s, holding discussions with Sébastien Ferrari about its development, including its strategic acquisition in Switzerland and the creation of its recycling plant with Solvay, another family-owned group. We have a longstanding relationship based on trust. In 2007, CM-CIC Investissement bought into the group via a capital increase, and we were ready to assist with further transactions that might have required additional equity, such as investments in production units in emerging-market countries or acquisitions in developed countries. CM-CIC Investissement constantly maintained its faith in the group during the 2008/09 global financial crisis and provided frequent input regarding the managerial measures needed to adjust to new economic conditions. Serge Ferrari is one of France s best industrial mid-caps, showing a high level of innovation and ambitions to expand internationally. When the decision was taken with the Ferrari family to list the company, we immediately said that we would take part in the pre-ipo transaction on the same terms, once again showing our confidence in Serge Ferrari at the time of this major deal, seven years after we first bought into the group.

6 Edmund Hillary and Tensing Norgay s of Everest in NOTHING IMPORTANT IS ACHIEVED WITHOUT TRUST This conviction inspires the men and women of CM-CIC Investissement on a day-to-day basis in their relations with the entrepreneurs they work with over the long term. We cover all areas of corporate finance - including venture capital, expansion capital, buyout financing and M&A advisory - in order to meet companies equity financing needs. In addition to professionalism, it is this resolutely people-based view of the business and this local relationship with business owners that characterise the success of our approach. CM-CIC Investissement - Lyon Espace Cordeliers - 2, rue Président Carnot Lyon Tél Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montréal TheLINKS.fr - RCS Nantes B Juin Crédits photos : Copyright 2001 British Photographers Liaison Committee/Finers Stephens Innocent As agreed by BAPLA, AOP, NUJ, MPA and the BFP - Musée Air France - Getty Images - Ferrari. Head office 28 avenue de l Opéra PARIS