May 27, 2020

The Paris office advised Bpifrance Participations on strengthening Mecachrome’s capital base and in setting-up of a French state-guaranteed loan scheme.

Willkie is advising Bpifrance Participations, which provided new money to Mecachrome, alongside its other historic shareholders. Mecachrome, which manufacturers components for the aeronautical and automobile industries, has raised €50 million in new funding from its historic shareholders while the industry is still in the midst of the Covid-19 crisis. The funding will allow Mecachrome to accelerate its transformation plan and position itself strategically ahead of the progressive restart of the industry. The group also received additional funding from its banks to secure its liquidity needs with a State Guaranteed Loan (PGE) of €60 million.

Having already initiated its transformation plan with the mid-2019 arrival of Christian Cornille as President, Mecachrome is now able to position itself as a long-term partner with leading OEMs (Original Equipment Manufacturers) such as Airbus, Safran, Bombardier, Rolls-Royce and Porsche.

Mecachrome is a leader in designing, engineering, manufacturing and assembling complex precision-engineered components for aircraft and automotive applications, including aerostructural components, as well as aircraft and high-end automobile engine components. Mecachrome is located across three continents with approximately 2,800 employees. Mecachrome has gained significant experience monitoring and implementing 4.0 industrial solutions for customers such as Ferrari, Renault and Safran.

The transaction was implemented by Bpifrance Participations alongside Ace Management, as majority shareholder, acting through a new dedicated fund consolidating the existing participations in Mecachrome held by Aerofund and Québec-based pension fund Fonds de solidarité des Travailleurs du Québec (FTQ). Together, they will fund Mecachrome by €50 million in equity, alongside the funding from its banks State-guaranteed loan scheme (PGE) in an aggregate amount of €60 million. This substantial funding will strengthen Mecachrome and mark the beginning of a new phase of transformation.

The Willkie team was led by partner Alexandra Bigot and included associate Batiste Saint-Guily (restructuring) and special European counsel David Lambert (corporate).