Consumables

Armor : an ambitious industrial project

Monday 14. April 2014 - Hubert Hubert de Boisredon and his team are looking to build a sustainable development

industrial group on a French and International scale, meeting the challenges faced by society.
The major challenges faced include :
? Product traceability, for the safety of people and property. Armor is currently the world leader in the production and marketing of Thermal Transfer printer ribbons for printing barcodes or printing variable information on labels and packaging in particular.
? The circular economy, through offering re-manufactured laser and ink-jet cartridges to both business and individual users, as well as a collection service, enabling 100% recycling of materials
? Energy transfer, using the company’s in-house industrial expertise to develop a thin, flexible, 3rd generation organic photovoltaic film, that by 2015 will provide accessible light-energy solutions for all.
CMIIs build on three unique pillars
Management by, and involvement of, every member of staff
Following the model of a family business, Armor believes in the concept of time and continuity. This is about sustainable building using investment that may take years to offer a return. The fact that all the management team shareholders from 2008 decided to re-invest 100% of their investment in Armor and to top this up with an additional payment is a significant indication of their commitment. Furthermore, the will of those in charge is to develop a local management system. Armor defines itself as a human company that relies on the involvement and expertise of all of its employees.
From the classic shareholder model, Armor has retained the requirement for profitability in order to prepare for the future and the need for regular and transparent communication with its financial partners. Armor’s model for profitability relies on sustained investment that enables gradual, deliberate growth to be supported thanks to a growing presence in emerging countries.
Co-industrialisation – a new model
Co-industrialisation consists of manufacturing in France while seeking growth outside France and Europe, where the economy is stagnant, in order to develop jobs in France. Armor thus manufactures semi-finished Thermal Transfer products at La Chevrolière (in the Loire-Atlantique Département) using components from industrial cutting facilities. These are spread around the world; in France, China, India, Singapore, Brazil and the United States, enabling local needs to be met while reducing the environmental impact of transporting goods. Through this development, Armor has secured long-term investment and jobs at its French site. “For Armor, co-industrialisation means successful globalisation; the kind that combines growth with the company’s respect for human values.”
Innovation and industry combined: in Armor’s genes
Armor has flourished thanks to a series of technological innovations (carbon and fax paper, laser and inkjet cartridges, thermal transfer) that are a part of its culture. Thanks to these successive – and successful – developments, Armor has decided to invest in renewable energy.
Being innovative is a trademark of many firms, but is an essential point for Armor, which made the choice three years ago to invest heavily in the field of photovoltaics, based on its expertise in ink induction on ultra-thin films. Armor Sustainable Energies (ASE), Armor’s new development centre will begin marketing products in 2015 and will reach its breakeven point in 2020. The group wishes to position itself as an essential player in the sector and turn this business into the group’s 3rd pillar, in addition to its thermal transfer and fax, inkjet and laser printer cartridges.
It’s a choice and we have chosen the industrial future. For Armor, there’s a meaning to long-term vision.
Armor’s CMII: shared trust
Our CMII reflects the trust of our investment partners
For Hubert de Boisredon, the choice of partners was above all based on his group’s plans. As he explains: “Orfite showed a great deal of trust in supporting us. They deserve credit for their professional and human involvement, which enabled Armor to invest for the future. To succeed them, I have chosen funds that are ready to make a commitment to long-term development and that believe in our new model of social capitalism. Our management team has the support of new partners from Arkéa Capital Partenaire, all of whom are engaged with and have confidence in the CMII.”
Crédit Mutuel Arkéa, through its long-term capital investment subsidiary, Arkéa Capital Partenaire, is investing 30 million Euros in Armor, its third contribution on this scale in the last three years. This buy-in to Armor’s capital is part of an approach that consists of providing long-term backing to entrepreneurs in the west of France. It is in line with this family group’s strategy for growth, wishing to ensure that the centres for decision making remain in the region.
Several other investment funds have become involved around Arkéa Capital Partenaire, each providing sums of around €5M. These include Ouest Croissance, Siparex and Amundi Private Equity Funds. This operation, conducted under the advice of Equalis Capital, managed by Jean-Philippe Debas, is highly specific, through its local co-investment with the support of regional funds.
Jean-Pierre Denis, Chairman of Crédit Mutuel Arkéa reports: “We are proud to invest alongside Hubert de Boisredon and his team to help see through the entrepreneurial goals of the Armor Group, with its globally-recognised expertise. This operation illustrates Arkéa Capital Partenaire’s positioning as a patient investor, happy to provide long-term support to high-potential medium-sized businesses, consistent with our model as a regional bank.”
Our CMII has the trust of our internal partners – our staff
The CMII brings together all employees who wish to invest in the company, in France through a company mutual fund, and overseas through the creation of an ad hoc company, during this coming year. A sum of € 2M has already been reserved to enable those Armor staff worldwide who wish to, to buy into the future development of the company.
Armor : facts and figures
Armor is a leading worldwide specialist in ink chemistry and printing technology :
? N°1 worldwide in thermal transfer technologies ? N°1 in ink-jet cartridge production in Europe ? N°1 in laser cartridge sales in France
This French mid-sized business bases its development on a strategy of co-industrialisation and sustainable innovation.
? 1,900 employees worldwide, including 600 in France (450 at the La Chevrolière production facility, close to Nantes)
? 26 subsidiaries throughout the world ? 10 production sites
? €1.6 M invested each year in protection for people and the environment ? R&D: 33 PhD-level engineers and technicians
? 2013 turnover: €217M – Net profit: 5.8% of turnover ? 75% produced from exports with 30% outside Europe ? Capital (equity and quasi-equity): €65M ? Management and staff contribution: 56% of capital and 71% of voting rights