A well equipped partnership

Transcription

1 October 2015 FAR GROUP and CM-CIC Investissement A well equipped partnership

2 With Far Group and Mejix Peugeot Outillage, the Sigma group is a leading player in electric tools sold through mass DIY and gardening retailers. Christophe Hurel and Pierre Bertrand are partners and managers of the group, and form an excellent team with complementary skills. Christophe Hurel explains to us how he revived a business that was thought to be in terminal decline six years ago. P. Bertrand et C. Hurel

3 FAR GROUP and CM-CIC Investissement, at the leading edge of innovation. The Sigma group started with the acquisition of Far Group in What attracted you to the company? Christophe Hurel: In 2007, Pierre Bertrand was head of admin and finance and I was head of B2C at a consumer electronics group, and the two of us wanted to take on an entrepreneurial project. We decided to acquire Far Group, which was exactly what we were looking for, i.e. a company with a trading system (purchasing in Asia, a single storage location in Europe and sales through distributors) in which I could use my sales and marketing experience. But it was also a company that needed restructuring, allowing Pierre to use his organisational expertise. As luck would have it, it was only 20km away from the place we were working at. How did you turn the company around? C.H.: We overhauled the international organisation, optimised flows and changed the purchasing policy. We also improved service levels i.e. the speed and conformity of deliveries which is crucial to succeed in our sector.. Did you also alter your product range? C.H.: Far Group was created in 1991, and saw a very rapid growth in the 1990s as a supplier to mass DIY and gardening retailers, which were opening stores as fast as they could. However, in the 2000s, the company started losing market share when retailers developed the capacity to source directly from Asia. In response, we focused on offering novel and alternative products e.g. plasterboard sanders, heat guns for wooden decking and tables which retailers prefer to source from suppliers for risk and volume reasons. Today, therefore, our work consists in finding new product segments, which means that we must be responsive. You then quickly acquired Meijix-Peugeot Outillage. What was the thinking behind that deal? C.H.: Although our Far Tools brand has a presence in most retail chains, in the entry-level to midrange segment, it is not well known among the general public. That was a constant source of insecurity, and so we wanted to acquire a strong brand. In 2012, we had the opportunity to acquire the business franchise of Peugeot Outillage, one of the oldest brands in France, which had been dormant for years. We overhauled it completely, adopting a new pricing policy and a high-end, safety-focused market position. We did that within a sister company to Far Group, called

4 Meijix Peugeot Outillage (MPO). Each company has its,own sales and marketing policies, but they share support functions. What are your main areas of development today? C.H.: Regarding distribution, we still have room for improvement with the mass DIY retailers, which are the main drivers of our business. We also have high hopes in e-commerce, through platforms like Amazon and Cdiscount, which already account for 15% of our sales. We are planning to develop our «re-export» business, which is currently focused on Belgium, Spain and North Africa. The integration of Peugeot Outillage should also enable us to break into the professional tools market. What is your relationship with CM-CIC Investissement? C.H.: The acquisition of Far Group took place in two phases. In 2008, we couldn t find any financial partners to support us, and so we bought a minority stake in the company alongside the original owner, until we could prove ourselves and turn the company around. In 2011, the situation was completely different, and several financial institutions wanted to work with us. We chose CM-CIC Investissement because its culture is the same as ours, with a genuinely entrepreneurial, long-term focus. It s really like looking in a mirror. We are always discussing things with our contact. Consolidated revenue 19 million A catalogue with 1,972 product lines 5,5 million of inventory in 8,000 m² of warehouse space

5 FAR GROUP as seen by Hélenn Lemaistre, CM-CIC Investissement. Hélenn Lemaistre We were in touch with Christophe Hurel and Pierre Bertrand well before they developed their entrepreneurial project, and so we knew each other well and we were able to respond rapidly when they wanted to take control of Far Group. Today, we have very frequent discussions about the business and market developments. We work as a real team when we look at acquisition opportunities together, each with our personal, but complementary, perspectives. Management has shown great quality in repositioning the company and building up its staff in a fairly difficult market environment. The coherent, consistent strategy being implemented by the two partners has enabled them to carry out some attractive acquisitions that have boosted the group s growth. Their expertise in integrating companies and business franchises involving the purchasing and sale of tools through mass DIY retailers means that we can now aim at a more transformative acquisition and play a role in consolidating this sector, which is still highly fragmented in France. Our ability to support entrepreneurs over time is vital in enabling Christophe and Pierre to seize the best opportunities in this market.

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 peoplebased view of the business and this local relationship with business owners that characterise the success of our approach. CM-CIC Investissement - Nantes 32 avenue Camus - BP Nantes Tél Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montréal Head office 28 avenue de l Opéra PARIS