To enter into this procedure, you must be able to demonstrate a plan likely to ensure the sustainability of the business, having garnered support from the main affected parties. Discussions had been underway for some time with the State, which had become the company’s main creditor. “It’s been a long time, said this afternoon the Minister of Industry, Marc Ferracci. For weeks and even months, discussions took place between state services, shareholders, creditors. The culmination of all this is the agreement signed yesterday and validated by the commercial court this morning which allows us to plan for the future. There are great stories in French industry and Arc is one of them.” State support was key, because the banks have long since let go of Arc, which can only finance itself at very high rates on assets such as its stocks.
Abandonment of public debt and new money
Today, the Minister of Industry Marc Ferracci, who was on site to meet company managers, local elected officials, employees and union organizations, revealed the details of the new aid plan from the State. Since 2015 and the takeover of the glassmaker by its current main shareholder, the American Dick Caskin, the State has already intervened five times. It is indeed difficult to let go, particularly in the current situation, of a company which still employs 3,900 employees. Concretely, the State agrees to abandon 20% of the company’s public debt: an effort of 40 million euros. In addition, it grants a new loan of 30 million euros from the Economic and Social Development Fund (FDES). But new money was also needed. “We absolutely must clean up our balance sheet and strengthen our capital to finance ourselves at traditional rates like a normal company” points out Frédéric Specque, the CGT delegate of the factory. The total amount of the capital contribution is 42 million euros. As with every difficult time, the American shareholder Dick Caskin will put back into the pot for an amount which is not communicated. Since its takeover, the main shareholder has put 200 million euros back into the company and participates in each new round of state support.
New private investors
Two new private investors are also entering the capital, each injecting 15 million euros. The first is Pascal Cagni, chairman of the board of directors of Business France. This former tech executive (NEC, Apple) created C4 ventures in 2012. We do not know if it is personally or via his fund that Pascal Cagni is involved. C4 ventures is more specialized in tech and bootstrapping, but took a majority stake last September in the Lelièvre house, specializing in fabrics, wall coverings and carpets. A company in a traditional sector, but much smaller than Arc since it only employs 140 employees, of which Pascal Cagni has taken over as president.
The second investor is Patrick Molis, director of the national navigation company, an enarque, who has created several companies in civil and military logistics. The Region and the Urban Community of the country of Saint-Omer participate “in supporting and strengthening the company’s balance sheet” according to the terms of the Bercy press release which does not specify in what form. The two communities had already granted loans to the glassmaker in 2020.
New challenge
What are the chances of success of this new rescue? Today the French Arc factory (which has three others: in the United States, China and the United Arab Emirates) is idling. It has suffered greatly, like its competitor Duralex taken over this summer by its employees, from the decline in consumption in its sector driven by the high level of inflation for two years. “The level of production is very low, around 150,000 tonnes in 2024, whereas at the end of Covid in 2021 we had produced over 230,000 tonnes over the year.explains CGT delegate Frédérique Specque. When an oven calibrated for ten machines only supplies three, it doesn’t work.» It will undoubtedly be necessary to size the tool to the volumes that the company can serve on its European market. But also review the offer to better position it.
For the moment, no social plan is envisaged, but with natural departures and retirement the company was already aiming to go from 3900 employees today to 3700 at the end of 2025. The arrival of two new investors, even if their contribution remains modest in relation to the size of the company, can also provide a fresh perspective on the business. The production tool has already been partly modernized, the site is only waiting for its market and to be able to finance its activity at acceptable rates.
Source: www.usinenouvelle.com
