French tableware group Arc International has agreed a €60 million investment plan from investor group Peaked Hill Partners (PHP).
PHP will provide €60 million in new capital and support the company’s turnaround.
The injection of new capital will help finance the restructuring of the group and the modernisation of its main production site at Arques, Nord-Pas-de-Calais, France.
The Ibled-Durand family, which controlled the company for more than 100 years, will invest €2 million to retain approximately 20% of the company.
“This is a major step forward for Arc International, its customers, and its employees,” said Xavier Ibled, a member of the Ibled-Durand family, “Bringing in external capital will enable Arc to renew its historical commitment to design and technical leadership for clients we serve and others. It will secure a good future for all our company’s stakeholders and the communities where we do business.”
The deal was led by PHP, an American investment structure founded by Tim Gollin, previously a Partner in JPMorgan Chase’s private equity unit One Equity Partners, together with Cédric Aymard and Didier Riebel in France, two specialists in business transformation.
The bidding agreement provides for PHP and its investors to repurchase all existing bank debt, reducing Arc’s financial costs and providing new flexibility to manage the company in the future.
In addition, after negotiations, the company’s employees representatives and a majority of unions have agreed to the final terms of a Social Plan linked to the injection of new capital in Arc.
As part of the agreement, PHP has agreed to maintain production at Arc’s flagship French site in Arques.
Mr Gollin said: “With the support of the French state and local public authorities, cooperation from debtors, openness of family shareholders and a constructive attitude of unions and employees in Arques, we have been able to structure a transaction which delivers value to all parties and provides a good future for the company, its customers, its employees and all other stakeholders.”