Discover some of our achievements in industrial equipment financing
Since 2003, Chetwode has arranged more than 130 industrial equipment financing transactions (mainly sale & leaseback) for a total amount exceeding 800m€ (production lines, stamping presses, paper production lines, cogeneration plants and more). Circa 63% of these transactions (in amount) were for equipment located outside France.
ChetWode announces a 13.7M€ financing in favour of Chalair Aviation, for the acquisition of 4 regional ATR aircraft from HOP (Air France Group).
As a specialist of inter-regional transport, Chalair Aviation is a French airline company present in Caen, Brest, Rennes, Nantes, Bordeaux, Pau, Montpellier, Limoges, Lyon and Paris-CdG.
With the planned withdrawal of turboprops (ATR type) from the HOP fleet (Air France Group), Chalair Aviation decided to position their operations on this type of aircraft of 48 to 72 seats, by becoming the French operator of reference, with a fleet consisting initially of 5 aircraft.
In June 2018, the company negotiated with HOP the purchase of four ATRs: one ATR72-500 and three ATR42-500. The new Predirec ABL-2 fund (« ABL2 »), recently launched by Acofi in partnership with ChetWode, will finance the operation for a total amount of 13.7M€, starting with a first aircraft, already financed in early November.
Passenger planes represent a significant innovation for the Predirec ABL-2 fund managed by Acofi Gestion, as does the financing scheme used: a loan granted to an intra-group company, which in turn leases the aircraft to Chalair. This is a significant move away from the leasing or sale & leaseback scheme, traditionally used by ChetWode and Acofi, specifically within the framework of their first fund, Predirec Leasing Stratégique (« ABL1 »). It’s also worth noting that the currency used for this financing is the euro, whereas most transactions in the aircraft industry are carried out in dollars.
« The acquisition of these four aircraft will allow Chalair to complete its inter-regional network and be well positioned in the provision of Public Service airline routes. We are delighted to contribute to the transport network for less well served territories and guarantee their transport connections. The reactivity of the Chetwode team and their expertise in asset finance were determining factors in the implementation of this financing», states Alain Battisti, President of Chalair Aviation and President of the National Federation of Commercial Aviation (FNAM).
« We are proud to support Chalair in its conquest of new inter-regional routes, all the more so since the financing of the 3 other aircraft is already scheduled from December 2018 to March 2019, thus contributing to the widening of our scope of intervention and the deployment of the new ABL2 fund «, comments Jean-Baptiste Magnen, President of ChetWode, « After the 2014 launch of the first strategic industrial asset fund in continental Europe, we are happy to further develop our activities by opening a new asset class with passenger planes».
Jean-Baptiste Jozan, in charge of the development of the aviation sector for ChetWode, explains: «The ATR is an excellent guarantee for the investors, as its secondary market is well established and its economic value is holding firm over time ».
CHALAIR: Alain and Francis Battisti / ACOFI: Alexia Picot and Hugo Thomas / CHETWODE: Jean-Baptiste Jozan, Michael Thorley and Christine Wiart
Technical and legal advisors: AVICO ASSET MANAGEMENT – Jean-Noël Garnier / STEPHENSON HARWOOD – Yann Beckers, Hugues Hounkpati and Borislava Koleva
Financing for an amount of 6.3M€ in favour of the Spanish Group COMINTER, 4th largest manufacturer of tissue paper of the Iberian peninsula, by Predirec – ABL2, a fund dedicated to the financing of strategic industrial equipment, created by Acofi in partnership with ChetWode.
Founded in 1978, Cominter Group is a manufacturer and distributor of tissue paper, cardboard and disposable products such as toilet paper, kitchen rolls, napkins and tissues. The Group is a long-term supplier of private label products for major distributors, including DIA, Lidl, Alcampo or Carrefour, as well as for gas stations, hotels, hospitals and restaurants. Present in Spain, France and Portugal, Cominter employs 214 people and produces 65 000 tons a year. In 2017, the Group recorded a 87.6M€ turnover.
In 2017, via LB Oprent, one of the leaders in strategic equipment leasing in Spain, Cominter called upon the services of ChetWode, European specialist in industry financing and Acofi, a major player in the creation and management of lending funds, to assist in its development objectives by setting up a sale and leaseback transaction, refinancing part of its industrial assets.
In April 2018, a sale and leaseback funding for 6.3M€ was put in place on the paper tissue manufacturing and tissue converting lines of Cominter’s two main subsidiaries: Kartogroup and Cominter Tisu in Burriana and Hernani, Spain.
«Our main objective through the refinancing of part of our industrial assets was to increase our profitability and finance our growth. This sale and leaseback transaction allowed us to raise the financial resources required to access new markets in a highly competitive environment», explains Xavier Martorell, CEO of Cominter.
ChetWode and LB Oprent welcome this first sale and leaseback transaction put in place by Predirec-ABL2, a new fund created in partnership with Acofi (an AIFM management company), as a successor to the Predirec Leasing Stratégique fund which already set up several financing operations in Spain.
«As the latest achievement of the exclusive cooperation agreement concluded between ChetWode and LB Oprent, this operation confirms ChetWode’s continued development in Spain. We are delighted that this first sale and leaseback transaction of the Predirec-ABL2 fund benefits Cominter and we are proud to contribute to their development», comments Simon Hamilton, ChetWode Managing Director.
José Antonio Lozano, LB Oprent CEO adds: « This is a very nice transaction where we combined efforts with a Group of Bank Entities lead by Deutsche Bank and with the excellent ChetWode/Acofi team to close a complex but very efficient deal. »
Financing for an amount of 7.25M€ by ChetWode and SQN Asset Finance in favour of MBF Aluminium, one of the leading European specialists in high pressure die-casting, machining and assembling of aluminium parts for the automotive industry.
Created in 1941 as a general mechanics workshop in Saint Claude (Jura), the company became an aluminium die-casting foundry in 1948. Today MBF employes 284 people in its two plants Plan d’Acier and Etables and produces an average of 4 million pieces a year. Since 2012 when it was taken over, the company has enjoyed strong growth and has created about 60 jobs; MBF has become the leading employer in Saint-Claude with a 50m€ turnover. Order books are full and production increased from 25 tons per day in 2012 up to 45 tons per day.
This expansion needed equipment and working capital facilities which were sourced by Chetwode from SQN Asset Finance, a major international lessor.
The combined experience of ChetWode and SQN, meant that by March 2018, a 7.25M€ sale & leaseback financing of MBF’s hydraulic presses, ABB robots and ovens was put in place.
Sale and leaseback facilities offer an established financing solution for companies seeking to generate cash through the refinance of their existing production equipment. By using this solution, MBF was able to raise new money to use as a real tool to drive growth.
«This sale and leaseback financing was the means to finance the adaptation and modernization of our process for new production as well as the acquisition of new high performance industrial equipment required to meet increasingly demanding market needs», explains Manuel Martins, Managing Director of MBF Aluminium.
Jean-Baptiste Magnen, ChetWode President comments: «Rooted in Chetwode’s long-standing partnership with SQN, this financing is further evidence of the synergies developed between our two structures, to the benefit of both this flagship of the French automotive industry and, more generally, to the renewal of the local industrial base”.
Neil Roberts of SQN, states: “we’re delighted to be working with ChetWode and MBF 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.”
Financing for an amount of 10.4 M€, for the Spanish Group LACREM SA, a leading European provider of frozen and refrigerated products, by Berivo, a leasing company created by ChetWode and Acofi and specialised in the financing of strategic industrial equipment..
Headquartered in Barcelona and with approximately €44 million revenue, Lacrem is one of the major players in the Spanish ice cream market and Farga Group’s industrial flagship. Owned by the Farga family, Lacrem manufactures and distributes frozen products, especially ice creams, cakes and pastries under its leading brand, « Farggi ».
In 2016, via LB Oprent, one of the leaders in strategic equipment leasing in Spain, Lacrem called upon the services of ChetWode, European specialist in industry financing and Acofi, a major player in the creation and management of lending funds, to assist in setting up a sale and leaseback transaction to help finance the acquisition of GKM Península (Grupo Kalise Menorquina), another major player in the ice cream market, whose products are distributed across 35 countries.
The objective of GKM Península’s acquisition by Farga Group was to increase its productivity and profitability as well as gain a leading position on the Spanish ice cream market, with an annual production volume exceeding 40ML and a €140 million revenue.
The combined experience in structuring and fund sourcing of ChetWode and its partner Acofi resulted in a sale & leaseback funding for 10,4M€ on Lacrem and GKM Península’s production lines based in Palau and Barcelona being put in place in April 2017 by Berivo, the leasing company under Chetwode/Acofi management
«This sale & leaseback financing allowed us to obtain the financial resources required for the acquisition of GKM Península and gain a substantial competitive advantage as part of our development strategy; it will also enable us to strengthen our leading position in the market with the acquisition of new market shares”, explains Eduardo Farga, Executive Chairman of Farga Group.
«This third financing transaction put in place as part of the cooperation agreement between ChetWode and LB Oprent confirms ChetWode’s development in Spain and should be followed very shortly by another major operation », comments Simon Hamilton, ChetWode Managing Director.
Financing for an amount of 6.7 M€, for URSA Group, a leading European provider of glass mineral wool and extruded polystyrene, by Berivo, a leasing company created by Chetwode and Acofi and specialised in the financing of strategic industrial equipment.
Headquartered in Madrid and with approximately €500 million revenue, URSA is one of the major insulation players in Europe, employing around 2.000 people. With 13 production sites in 8 countries, URSA offers a wide range of insulation products dedicated to the construction industry in Europe, Middle East and Northern Africa. URSA’s annual production volumes are 300 000T for glass mineral wool and 2 000 000 m3 for extruded polystyrene.
In 2016, via LB Oprent, one of the leaders in strategic equipment leasing in Spain, URSA called upon the services of ChetWode, European specialist in industry financing and Acofi, a major player in the creation and management of lending funds, to assist in setting up a medium-term financing to cover both its recurring needs in working capital and its industrial investments.
The combined experience in structuring and fund sourcing of ChetWode and its partner Acofi meant that in March 2017, a sale & leaseback funding for 6,7 M€ on URSA’s Spanish and French production lines was put in place by Berivo, the leasing company under Chetwode/Acofi management.
«This financing allowed us to obtain the financial resources required for the implementation of our investment and growth plans in accordance with our development strategy for the international insulation market», comments Joaquín Lozano Agramunt, President of URSA France and URSA Group CFO.
ChetWode and LB Oprent welcome this second transaction set up within the framework of the cooperation agreement signed between both companies in February 2017:
«This transaction is a major step in cementing the cooperation between our two structures and we are very happy to have a company like URSA as the direct beneficiary of this cooperation, allowing the company to achieve its financial goals. Moreover, two other transactions are currently under consideration within the framework of our cooperation agreement», explain Jean-Baptiste Magnen, Chetwode President and José Antonio Lozano, LB Oprent’s CEO.
Financing for an amount of 6.2 M€, for Chargeurs Fashion Technologies (Chargeurs Group), leading global player in garment interlining, and its French industrial site Lainière de Picardie, by Berivo, a leasing company created by Chetwode and Acofi and specialised in the financing of strategic industrial equipment.
As a division of Chargeurs Group, Chargeurs Fashion Technologies, the world’s second largest garment interlining manufacturer and key player in the fashion industry, manufactures and distributes an extensive range of fusible woven interlinings worldwide, thanks to its 7 production sites and 25 commercial offices worldwide. Chargeurs Fashion Technologies employs 857 people worldwide and recorded a 157,5 M€ turnover in 2015.
In spring 2014, Chargeurs Fashion Technologies first called upon the services of ChetWode, European specialist in industry financing and Acofi, a major player in the creation and management of lending funds, to support its development projects and diversify its financing sources. The objective was the setting up of a sale & leaseback funding on the Lainière de Picardie production equipment, amounting to 4M€.
Historically, Lainière de Picardie has been Chargeurs Fashion Technologies’ flagship. Founded in 1903, this site currently generates 40% of the Division’s turnover. It is also the main R&D center and the most significant production site of the Division, with 110 knitting machines and 7 coating lines.
In 2016, following a return to a significant revenue growth and improved operational performance, Chargeurs Fashion Technologies wished to enlarge the scope of the initial funding put in place in 2014, in order to ensure Lainière de Picardie more profitable commercial and industrial opportunities, optimize their industrial production equipment and target new clothing niches.
The combined experience in structuring and fund sourcing of ChetWode and its partner Acofi meant that by June 2016, a new sale & leaseback funding for 6,2 M€ was put in place by Berivo, the leasing company under their management and which they established in 2014.
Rémy Husson, Chargeurs Group CFO, commented that “this operation is the result of the trust built up over several years between Chargeurs Group and the ChetWode team. Its expertise in industrial equipment and its perfect understanding of the company’s business model, enabled us to quickly obtain the financing required to support our development”.
ChetWode and Acofi thanked Lainière de Picardie for their renewed confidence: “We are delighted by the work and results achieved together with Acofi and we are proud of the renewed confidence expressed by Lainière de Picardie. It demonstrates the capacity of ChetWode to support its partners in the long run, toward the achievement of their financial objectives », states Jean-Baptiste Magnen, President of ChetWode.
Damien Boulangeat, Sales Rep. in charge at ChetWode explains: « Since 2003, the Chargeurs Group have worked with ChetWode to advise them in the financing of their industrial equipment. This new transaction is the proof of our capability to answer our customers’ needs on a long term basis and through all stages of the business cycle”.
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.”
Financing for an amount of € 3.77 millions for the European flexible packaging solution provider UNI Packaging, by Berivo, a leasing company created by ChetWode and Acofi and specialised in the financing of strategic industrial equipment.
Founded over thirty years ago, UNI Packaging is a family company that produces and processes flexible packaging solutions for the food industry. Its strong and aggressive investment policy allowed it to develop its product range and strengthen its position in more than 15 countries across Europe and the emerging markets. UNI Packaging’s continued innovation drive allows it to meet the ever changing market needs and customer requirements. Over 2M euros is spent annually on research and development.
Ranking among the top 20 European plastic packaging manufacturers, UNI Packaging is aiming to reach 200 M€ turnover by 2020. To achieve this objective, it plans to massively develop its activities throughout Europe, not only through organic but also external growth.
With this aim in mind, UNI Packaging called upon the services of ChetWode in February 2015, to assist in obtaining the financing required to support its development strategy. The experience in structuring and funding of ChetWode and its partner Acofi meant that by July 2015, a sale & leaseback funding for 3,77M€ was in place, allowing UNI Packaging to develop its activities in Europe, namely through new acquisitions.
Implemented via Berivo, a leasing company specialised in the financing of industrial equipment and established by ChetWode and Acofi in July 2014, this financing will allow UNI Packaging to further expand on the international stage and strengthen its position in the packaging marketplace.
Financing for an amount of € 15.8 millions for Saint Jean Industries, Tier 1 automotive equipment manufacturer, by Berivo, a leasing company created by ChetWode and Acofi and specialised in the financing of strategic industrial equipment.
Founded in 1962, Saint Jean Industries is a family company that operates in the aerospace and automotive industry where it generates 80% of its turnover as a world leading supplier for major automotive manufacturers. As a Tier 1 manufacturer, Saint Jean Industries employs 1900 people worldwide and has a strong international presence (Europe, USA, Japan, Korea). It is specialized in the conception and manufacturing of complex aluminium components. In 2014, the Group registered a turnover of 184 M€.
Due to strong competition in the automotive industry, productivity is a major issue for any component supplier aiming to assert its leading position on the international scene.
In 2013, with a view to optimizing its production equipment, Saint Jean Industries called upon the services of ChetWode to assist in obtaining the financing required for a machining unit for the Ford 1.5 L petrol engine.
By December 2013, at a time when banks were reluctant to intervene in the automotive industry, ChetWode’s technical and financial expertise enabled Saint Jean Industries to equip itself with two Heller machining centres, through the implementation of a lease financing of 1 060 000€.
In January 2015, Saint Jean Industries reaffirmed its confidence in ChetWode as investment advisor, to assist in the strengthening of its capital base: a mezzanine financing was then put in place with IFE Mezzanine, for a total amount of 11 M€.
Later in 2015, to support its international development projects, Saint Jean Industries once again approached ChetWode to support the organic growth of its American subsidiary, due to a substantial order from a major American automotive manufacturer. The combined experience in structuring and funding of ChetWode and its partner Acofi meant that by the end of December 2015, a sale & leaseback funding for 15,8 M€ was put in place by Berivo, on the production equipment of Saint Jean Industries’ American site in Heber Springs (Arkansas).
Christian Georges, Saint Jean Industries CFO states : « following several tranches of financing of varying types implemented between 2013 and 2015, this latest financing transaction with Berivo on our US production tool is the outcome of a seamless partnership with ChetWode : its combined expertise in industrial equipment and sale and leaseback allowed us to put in place this financing under the best possible conditions, despite the high degree of complexity (equipment located in the USA) and benefit from the financial resources needed to sustain our international development» .
Simon Hamilton, ChetWode Managing Director, comments : «as investment advisor to Berivo, ChetWode is particularly proud to count Saint Jean Industries among the 10 customers of the fund to date and assist them in the achievement of their financial objectives. This financing is the outcome of a long standing relationship of trust between ChetWode and Saint Jean Industries“.
LEGAL enters the compatible capsule market thanks to a financing amounting to more than 3m€ made available by ChetWode (sale & leaseback).
Master coffee roaster since 1851, LEGAL SAS produces coffee primarily for food retailers, acquiring coffee beans on the international markets, then roasting and processing the coffee in its two roasting factories in Le Havre prior to sale.
In 2010 and 2012, as part of their development programme, LEGAL called on ChetWode, a specialist in the structuring and management of strategic industrial equipment financing, to assist in finding and implementing financing solutions for its Capsule project (Pegaso capsule production lines and associated packaging equipment).
The financing made available to LEGAL by ChetWode in its role as mandated advisor has amounted to more than 3m€, mainly in the form of sale & leaseback transactions arranged with French and Irish funding partners for whom ChetWode provides transaction management and equipment inspection services. This has allowed LEGAL to undertake substantial capital investment and therefore continue to develop its traditional markets whilst at the same time entering the growing compatible capsule market.
Today, LEGAL sits third in the French roasted coffee market.
A funding by Berivo of 4.6 M€ for NovaWatt, an independent producer operating in the free electricity market. Berivo, created by ChetWode and Acofi, is a leasing company specialised in the funding of strategic industrial equipment.
As an independent producer operating in the open electricity market since 2007, NovaWatt manages a fleet of decentralised production units consisting of gas cogeneration and diesel power stations – whether wholly owned or managed for third parties. The currently managed fleet generates close to 300 MW and should reach 1GW by 2020.
NovaWatt’s value lies in its ability to produce and sell electricity at the right time and in the right form across various wholesale energy markets. In a context of uncertainty in the price of energy and the future regulatory framework of the electricity sector, NovaWatt’s offer stands out as a simple and economically viable alternative for owners and operators of power plants.
In 2015, NovaWatt once again approached ChetWode to accompany it with its growth plans, in particular the refinancing of two cogeneration plants at Emin Leydier & Calais. A sale & leaseback has been put into place, allowing NovaWatt to free up the financial resources necessary for the development of its production capacity via the acquisition of new cogeneration plants.
In May 2015, the combined experience of ChetWode and its partner Acofi in structuring and fund sourcing led to the completion of a 4.6m€ transaction, to be fully implemented in summer 2015. This will allow NovaWatt to meet its growth objectives and strengthen its position in the French energy market as a major player in the decentralised electricity generation sector.
Franck Rabut, NovaWatt President, commented that “this operation is the result of the trust built up over several years between NovaWatt and the ChetWode team and demonstrates ChetWode’s consistently efficient ability to help NovaWatt meet its development objectives”.