February 2014 MACC and CM-CIC Capital Finance A meeting to create ties
For more than 50 years, building professionals are eagerly awaited the annual visit from the MACC van. The specialist in direct sales of small professional equipment is the best for offering original and exclusive products dedicated their work, from folding ladders to furniture trolleys. Jean- François Lavrard, who currently runsthe company alongside Jean- Christophe Susset, talks to us about the success of this unusual company. Jean-François Lavrard & Jean-Christophe Susset
La MACC and CM-CIC Capital Finance: a partnership with a family spirit. Why this name Manufacture d Armes et de Cycles de Châtellerault-Macc and what are your activities today? Jean-François Lavrard: After the Second World War, Manufacture d Armes de Châtellerault, which was managed by the French Army, found itself without any business. A meeting was organised to announce job cuts. My father, Georges Lavrard, who was in charge of sound for the event, had the idea to suggest to the managing director a reconversion to specialise in hunting weapons, for which he could be in charge of sales. MACC was born. On the strength of this initial partnership, he then turned to other manufacturers in the region in order to enlarge the sales catalogue, to include sewing machines in particular. As inventor himself, he also sold innovative products such as tongs for roast meats on invalid beds, which he manufactured in local companies. The success of one of these inventions - the Univerchelle, an articulated scaffolding ladder - led him to specialise in small equipment for building professionals. We still firmly believe that the secret of success is not to go off in all directions but to have a firm target for your business plan and sales and marketing efforts. For sales and distribution, you have a very specific marketing method. J-F.L.: We work exclusively through direct sales. In France, we have 67 sales representatives who visit around 70% of the country s 350,000 building professionals each year in their demonstration vehicles. They manage to close one in two sales, with an average spend of 700 to 800. Customers can send orders, but most of the time they wait for the van to come. Do you export this original model? J-F.L.: Yes, we also operate in Spain, Italy, Belgium and the United Kingdom, adapting our products to local standards and practices. For example, the Spanish do not use the same kind of wheelbarrows as the Belgians. In the future, we are looking to move into the German market. However, the recession lead to remain cautious for the time being and we prefer to consolidate our existing activities. How do you maintain interest from building professionals each year? J-F.L.: By remaining loyal to our original spirit of innovation, with the main aim of making life easier for our customers on a day-to-day basis. We try to offer two innovations each year. Our R&D and marketing departments work hard on this, drawing in particular on the needs expressed to us by our customers. We have set up a programme that enables
building professionals to suggest ideas or even prototypes. When a particular project appeals to us, we file a patent in the professional s name and pay them royalties. This programme includes the recent development of a system for unhinging and rehanging doors, and another to avoid electrical cables getting tangled up. Note that the two most recent inventions never appear in the catalogue for the year. This tactic enables our sales representatives to present new products directly to their customers. What is your relationship with CM-CIC Capital Finance? J-F.L.: Following our IPO on the Second Marché in 1984, we decided in 2006 to buy back our own shares in order to maintain the family nature of the company. CM-CIC Capital Finance helped us in this project. In early 2011, we moved onto the next stage with our partner acquiring a stake in the company. The idea was to begin with a 5% stake in order to enable them to learn about the company, before gradually increasing this stake as family shareholders left the company. CM-CIC Capital Finance rapidly understood our business and already provide us good ideas. This constitutes an excellent basis for the arrival of the third generation. 182 employees and agents Sales of 43 m in 2013 128,000 demonstration visits in 2013
MACC as seen by Badri Ben Grine, CM-CIC Capital Finance. By combining significant capacity for innovation, thanks to the launch of original and patented products, with a particularly effective sales and marketing model based on direct sales, MACC has been able to grow successfully for more than 50 years. More than 300,000 building professionals out of a total of around 1 million in Europe use MACC s green and yellow products every day. Badri Ben Grine Headed by the impressive team of Jean- François Lavrard and Jean-Christophe Susset, the MACC group went back to an unlisted family-owned company in 2006 after its withdrawal from the Second Marché. CM-CIC Capital Finance acquired a stake in the company in 2011 as the logical next step, with MACC s managers wanting to ensure that it remains a private company and open up the supervisory board to an equity investor with a long-term minority stake. We strongly believe in the relevance of MACC s business model. We therefore intend to contribute to strengthen its ambitious organic growth strategy in Europe and to enhance the handover of this family-owned group in the respect of its independence.
Edmund Hillary and Tensing Norgay s ascent of Everest in 1953. Jacques Piccard and Don Walsh s record dive in the Mariana Trench in 1960. Mermoz and Guillaumet s opening of the Andes line in 1929. The Americans moon landing in 1969. NOTHING IMPORTANT IS ACHIEVED WITHOUT TRUST. This strong conviction provides constant inspiration to CM-CIC Capital Finance s people in their long-term relationships with entrepreneurs. We meet the needs of businesses in all areas of equity fi nancing, including venture capital, development capital, buyouts and M&A advisory. Together with our professionalism, our service is characterised by our strong focus on people and our close ties with business leaders. CM-CIC Capital Finance - Nantes 32 avenue Camus - BP50416 44000 Nantes Tel: +33 (0)2 40 35 75 31 www.cmcic-capitalfinance.com Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montreal TheLINKS.fr - RCS Nantes B 328 330 717-130042 - Février 2014 - 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 - MACC. Head Office 28 avenue de l Opéra 75002 PARIS