France: Texelis management board acquires majority stake in company.

The Texelis management team, led by Charles-Antoine de Barbuat, has acquired the majority shareholding of the Group with the support of institutional investors Siparex, Bpifrance and Carvest, it announced on 12 December 2018. Phillippe Frantz, who has been the majority shareholder since 2009 when the company separated from Renault Trucks continues as a shareholder, to provide continuity as the company continues on its growth path.

Based in Limoges, Texelis specialises in developing and producing drivetrains, including axles, and power transmission systems for heavy vehicles including metros, trams, armoured vehicles and heavy trucks. Over the last few years the company strategy has focused on developing innovative mobility solutions whilst diversifying its customer base with major global manufacturers such as Siemens, Bombardier, Volvo and Nexter. Amongst recent successes, the Group is supplying mobility systems for the Siemens Neoval people mover, the Serval 4x4 armoured vehicle for the French Direction Générale de l'Armement and the renovation of the Mexico Metro.

The Texelis Group employs 350 people with a wide range of design, production and programme management skills on its 35,000 m2 production site. In addition to production it has an extensive refurbishment business especially in the rail market, for axle systems. It will report revenues of 110 million Euros in 2018, a threefold increase since 2015, when the new strategy was adopted.

"We are committed to following the strategy that has proved to be so successful for Texelis. By maintaining our independence and the continuity of the management team and workforce, we are able to demonstrate our commitment to our clients and to our joint projects. The support of Siparex, Bpifrance and Carvest provides us with the opportunity to expand our development in France, as well as internationally. I welcome the continued presence of Philippe Frantz amongst our shareholders as he provides valuable stability for the business," said Charles-Antoine de Barbuat, President of Texelis.

Guillaume Rebaudet, Director of Siparex commented, "We are very impressed by the Texelis Management Team's motivation and ambition and we are delighted to support Charles-Antoine de Barbuat and the team in this acquisition." "This investment is in line with the strategy of our Siparex ETI 4 fund, whose objective is to support medium sized enterprises," added Mr Rebaudet.

Siparex is investing via Siparex 'ETI 4', its fund focussed on medium sized companies, and the 'Transatlantique' fund to support the Texelis Group structure and its development projects in Canada, where it sees significant opportunities. Bpifrance, which is investing via the 'Croissance Rail' fund, will support the Group's development via Bpi's integration in the rail sector and the 'Accélérateur ETI Nouvelle-Aquitaine' innovation project which Texelis joined this year. Finally, Carvest, will expand the opportunities available to the Group as well as providing access to the best possible financing options to develop new projects.

Texelis has been designing and producing axle systems and drivelines for military vehicles, metro, trams, busses and trucks for over 40 years. Its key expertise is converting the power generated by the motor, whatever type, into effective vehicle motion. The company employs nearly 350 staff and operates form a 35,000m² manufacturing facility on the edge of Limoges, France, which is currently undergoing a multimillion euro modernisation programme. The company's turnover for 2018 will be in excess of €110 million. The company has a pedigree stretching back nearly 80 years of supplying engineered solutions.