On Wednesday, the commercial court in Dijon approved the offer from a Franco-American consortium, the sole bid on the table, to acquire Metalliance, a company specializing in tunnel boring machines and decarbonized vehicles.
“This decision marks a significant turning point for the company, ensuring the preservation of 145 skilled jobs and an investment of 10 million euros,” the Franco-American consortium stated in a press release. The consortium has committed to retaining 145 of the 174 employees based in Saint-Vallier (Saône-et-Loire).
Details of the Consortium
The consortium, led by Franco-American Steve Filipov, includes Corail-SM, a French subsidiary of the American fund Coral Reef, another American fund Sandton Capital, and two industrial players: French company Novium (specializing in railway construction equipment) and American firm Mining Equipment.
Acquisition and Investment Plans
The consortium is purchasing Metalliance’s assets and inventory for one million euros and plans to invest an additional nine million euros to restart production.
Mr. Filipov, who has previously managed several French companies, including Metalliance’s former parent company Gaussin, aims for the acquired company to “return to profitability by the second quarter of 2025” by initially fulfilling 50 million euros worth of orders.
Challenges and Future Plans
Metalliance was tasked with assembling over 300 logistics vehicles ordered by Amazon from Gaussin, a company also facing difficulties and selling Metalliance after being acquired by the Czech firm CSG.
However, Metalliance could only partially fulfill this order due to its insufficient size relative to the contract’s demands.
In the long term, the new owner plans to expand the decarbonized vehicle segment alongside tunnel boring machine production. To achieve this, they have partnered with Blyyd, a Lyon-based manufacturer of electric yard tractors, which was previously a distributor of these products for Gaussin.
Gaussin’s Opposition
Gaussin has opposed the takeover bid by the Franco-American consortium, describing it in a stock market statement as a “capture or diversion of Gaussin’s know-how” (74 employees based in Héricourt, Haute-Saône).
Consequently, Gaussin requested that the sale of Metalliance exclude the stock of parts, which the parent company aims to repurchase for three million euros.
Conclusion
The approved takeover of Metalliance by the Franco-American consortium promises significant investments and job preservation, with strategic plans to restore profitability and expand product lines. However, the opposition from Gaussin highlights underlying tensions and challenges in the transition.