CMR Group
Country: France
Region: Provence-Alpes-Côte d'Azur
Investors: Siparex
CMR Group designs, manufactures and commercialises electronic equipment for control, measurement and regulation in the shipping and the energy production markets. When Siparex invested in 2006, the group was present in five markets and had sales of €28.9m, but had significant potential to grow.
Siparex helped CMR by first putting in place the right financing pool to enable CMR to expand internationally and providing finance for investment in production. Siparex also supported the implementation of an enterprise resource programme to improve efficiency and helped the management team through the difficult economic times following the financial crisis. CMR grew to be present in eight markets across Europe, Asia and North Africa and generated sales of €48.6m before being sold in 2011.
Pascal Fouache
CEO - CMR
While the economic environment was greatly challenging the conduct of the initial strategic plan, the majority shareholder’s steady support and strong involvement whenever necessary were key to us staying the course.
>€48m
turnover, up from €28.9m in 4 years
548
employees, up from 305
What did the business need?
A new investor to buy out the previous shareholder
Capital for international expansion
Investment to improve and increase production capacity
How did private equity backing create lasting value?
Supported €5m investment in production plants
Created a central purchasing service to improve the supply chain, including a €3m IT investment
Helped expansion in Asia by structuring financing specifically for Singapore
Supported management through a turbulent economic environment
Established a share ownership structure that was opened up to management team and 50 second-tier management
Provided capital for investment and put in place a banking pool to support internationalisation
Improved product technical innovation, particularly in the smart sensors segment
What outcomes did private equity investment achieve?
Positioned CMR as one of the leading global players in its market
Nearly doubled turnover from €28.9m in 2006 to €48.6m in 2010, with growth driven by Singapore and the UK
Improved energy efficiency of products
Increased employee numbers from 305 to 548
Investors
