ARC International

Financing for an amount of € 35 million for ARC International, world leader in glass tableware, by Chetwode, specialists in industrial financing and SQN Capital Management, a unique fund manager.

Thanks to its expertise and know-how in glass technologies dating back over 100 years, ARC International is the world biggest glass tableware manufacturer, with a 12% market share and a daily production of 4 300 000 items. The glassmaker has a strong international presence with 5 production sites across three continents (USA, China, France, United Arab Emirates, Russia). Recognized for its technical know-how and capacity for technological innovation, ARC International employs more than 10 000 people worldwide, of which more than half are in France. The group recorded a turnover of 849 M€ in 2015, and is aiming to achieve more than one billion euros in 2017, and 1.4 billion in 2020.

Taken over in March 2015 by the American Peaked Hill Partners (PHP) investment fund who hold 80% of the equity (the remaining 20% being held by the Durand founding family), ARC International needed to modernise and optimise its production equipment and manufacturing capacity to meet the fast moving demand in terms of product ranges, deadlines and quantities. It chose Chetwode’s alternative financing solutions to provide the type of funding it wanted, rather than having to rely on local inflexible banking facilities.

In 2015, ARC International called upon the services of Chetwode, specialists in industrial equipment financing, to assist in obtaining the financing required to support its modernisation programme. The combined experience of Chetwode and SQN, meant that by May 2016, a 35M€ sale & leaseback of ARC’s glass furnace and production equipment was put in place.

Mr. Didier Riebel, Group Managing Director explains: “We found in Chetwode a real partner able to support us in the long run; their expertise in industrial equipment and experience in Sale & Leaseback allowed us to implement this transaction in the best possible conditions and benefit from the financial resources needed to sustain our development.”

Mr. Neil Roberts, Managing Director of SQN comments: “We’re delighted to be working with Chetwode and Arc International and to have completed this substantial financing of good quality industrial plant and equipment in France. This investment continues to expand our significant involvement in providing funding for high value, business essential assets across a range of diversified industries in the selected countries in which we operate.”

Simon Hamilton, Chetwode Managing Director states: “We are more than satisfied with the work achieved with SQN, and we are proud to support a customer such as ARC International in achieving its financial objectives.”

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