The Normandy-based manufacturer of specialized baling machines, generating €6 million in sales, is transitioning ownership to a new majority buyer backed by Normandie Participations, with the aim of accelerating the international expansion of this innovative SME operating in a growing niche market.
CFNEWS article by Houda El Boudrari, published on March 14, 2022, at 6:16 p.m.
Nearly 35 years after its founding, Atelier de Recherches & de Conceptions (ARC) is changing hands, with founder Eric Lechevalier handing over to Stéphane Houette, a former head of the Industry practice at Capgemini Consulting.
The MBI is supported by a minority investment from Normandie Participations, which invested at the lower end of its €500,000 to €5 million range dedicated to growth and succession transactions. “We initiated the introduction between the seller and Stéphane Houette, who had the strongest profile to drive the development and ensure the long-term future of this local industrial gem,” says Matthieu Rabeisen, Investment Director at the regional investor, which was established by the Normandy regional council and has €100 million in investment capacity
€6 Million in sales, half of It generated through exports
Based in Offranville, in the Seine-Maritime department, ARC (Atelier de Recherches & de Conceptions) designs and manufactures standard and custom tying and baling machines and production lines, primarily for meat processors, market gardeners, and horticultural growers.
Founded in 1988 as an engineering firm serving the motorsport industry, the Normandy-based company specialized in knotting machinery in 1989 and joined the small circle of baling-machine manufacturers. In this niche market, which has only a handful of players across Europe, the French SME has already established itself as a significant player, generating €6 million in sales.
Stéphane Houette, Atelier de Recherches et de Conceptions (ARC): “What attracted me to the company was its ability to innovate and to meet its customers’ specific needs as closely as possible,” says Stéphane Houette, who was also won over by ARC’s eco-friendly approach, with its products seen as an alternative to plastic packaging. This positioning should enable the company to capture additional market share and accelerate its international expansion, which is already well underway, with nearly half of its sales generated through exports.
