After having achieved five-fold growth since 2002, Richard Paget and his brother Olivier Paget have attracted investment from MBO & Co and Amundi Private Equity Funds (Amundi PEF) to pursue an ambitious growth plan on the “local charcuterie under quality labels” market. The historical investors Siparex and Carvest (the regional investment arm of French bank Credit Agricole) have re-invested in the deal.
Issuing from a traditional charcuterie established in 1939 by Jean Amiotte-Suchet, the company has since grown to become the leading supplier of Morteau and Montbéliard sausages with market share of around 60% for both products, each of which having PGI (protected geographical indication) status. Arcado is also the leading supplier of Burgundy ham with parsley. Today, the group is a key player on the speciality cured meats and sausages market. It has achieved tremendous growth, through strong organic growth as well as external growth with the acquisition of three companies: Morteau Saucisse in 2003, Clavière in 2015 and Chambade in 2017.
Arcado Groupe is headquartered in Avoudrey (Doubs) and has more than 300 employees. It has four production sites (Avoudrey, Morteau, Dôle and Chalon-sur-Saône) and should generate revenue of nearly €76m and EBITDA of €10m in 2018. Regularly recognised for the quality of its products (awarded several medals at the annual agricultural show in Paris – products made using pork only sourced in France), the group has a varied and complementary range of quality local products.
In this MBO transaction conducted around Olivier Paget, who becomes the group’s CEO, MBO & Co and Amundi PEF, through the funds they manage, are acquiring a majority stake, with a combined investment of around €30m. This is to support Groupe Arcado’s strategic growth plan, driven by Olivier Paget and Richard Paget. The plan aims to pursue the group’s active growth policy, notably through acquisitions. The historical financial investors, Siparex and Carvest have re-invested to accompany the group in this new growth phase.
With the growth of IGP products and the charcuterie market, Olivier Paget and his management team plan to accelerate the strategy initiated and supported by Richard Paget of growing the perceived value of Arcado’s products, thanks to the quality labels (IGP, Label Rouge, products made using pork only sourced in France), while expanding into new geographical areas and continuing to consolidate the French market of local charcuterie under quality labels. A strategy that aims to deliver revenue of €100m within three to five years.