Need to resize the company to regain profitability
Frank & Pignard Technology employed 375 people to manufacture automotive components. Two years ago, as part of the administration procedure of MAIKE AUTOMOTIVE, it was taken over by BIONNASSAY M&P Technology, made up of three other manufacturers (including AKWEL AUTOMOTIVES and ALPEN’TECH), to become a leading player in precision engineering. The takeover was more complicated than expected. The investments made and the management provided by Marc Horrellou enabled Frank & Pignard Technology to remain a key player in its industry, but the Covid-19 crisis destroyed his efforts.
In light of the new order adopted on 20 May, 2020 by the government to support recovery plans in the industry during the health crisis (article 7, which authorises the takeover of a company by its own directors at the commercial court), BONNASSAY M&P Technology decided to apply to be its own successor by submitting a takeover plan.
The aim? ‘To save what can be saved’, as Marc Horellou put it. To capitalise on the company’s expertise and technology, and realign its objectives with business prospects, to return to growth.
Supported by legal and financial consultants specialising in restructuring (KPMG, LAMARTINE Avocats, LAMY LEXEL partners), BIONNASSAY M&P Technology submitted a formal bid including the protection of 128 jobs and 9 apprenticeship contracts. An unprecedented takeover bid in the Auvergne-Rhône-Alpes region approved by the specialist Commercial Court of Grenoble on Friday, 31 July.
It was in competition with a second bid, submitted by ACI Group with a plan for the recovery of 160 jobs. But the court emphasised the serious, sound and sustainable nature of the shareholders’ bid, in particular in financial terms, to ensure the recovery of Frank & Pignard Technology and the future of its re-hired employees.