Along-awaited consolidation in the French supply chain gathered momentum as 2021 drew to a close. The COVID-19 crisis has highlighted the fragility of a number of small and midsize enterprises. OEMs and France's aerospace lobbying association, GIFAS, had long called for mergers and acquisitions to make those companies more robust financially.The accelerating trend toward larger groups indicates that the calls have been heard. The result is a French supply chain-key to major players such as Airbus, Dassault and Safran-gradually growing stronger and more resilient. This evolution also shows that investment fund Tikehau Ace Capital is playing its expected role in the consolidation. These are the recent consolidation moves: 1. Mecachrome, a specialist in metallic aerostructures and engine parts, is merging with metal component supplier WeAre, a deal supported by Tikehau Ace Capital.2. Latecoere, an expert in aerostructures, electrical wiring and interconnection systems, completed a capital increase in August and has since acquired three foreign companies and invested in a fourth.3.Figeac Aero, a supplier of large metal components, is seeking to conclude a capital increase with Ace Capital Partners, a subsidiary of Tikehau.4.Rossi Aero, a specialist in ad hoc manufacturing of metal components, now has Tikehau Ace Capital as its main shareholder. Rossi was hurt severely by the crisis, as demand fell shortly after the company had invested in a new factory. As a result, Figeac and Rossi may become more attractive to potential buyers or merger partners.
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