E-Capital III has committed its fourth investment by participating in a leveraged buyout of Techno Metal Industrie SPRL and Chaudronneries & Tuyauteries Industrielles SPRL.
These companies are active in three segments of the metal treatment: for TMI, assembly, transport and installation of metal frameworks and ironworks and for CTI, industrial pipings. The plants are located in the neighborhood of Namur.
The founders of TMI and CTI have designed the industrial processes in such a way that it does not require extensive capex since a series of jobs has been subcontracted (metal cutting, galvanization, paint and transport as well as stability studies). However TMI runs in-house a design office for the feasibility and drawing studies.
Most clients (90%) are Belgian general contractors such as CFE, Besix, Bam or Blaton (TMI), or industrial and maintenance companies (CTI). The end customers are an equal mix of private and public contracting parties.
Barriers-to-entry are the need for certifications and, over years, references, expertise and know how.
The parties agreed to grow the companies in the G-D of Luxembourg and in France. This strategy will be supported by the acquisition of an adjacent hall, the hiring of additional workforce and the reinforcement of the commercial staff. The objective is to increase the turnover by 50% over the next five years.