From Precision to Expansion
CASE STUDIES
The Alu Ferri x Société Champenoise de Mécanique (SCM) Business Case
Cofisys – Strategic Advisory in M&A & Growth Capital | January 2025
CHALLENGE: The Story Behind the Alliance
In early 2025, Alu Ferri, a growing European manufacturer in high-performance aluminum solutions, identified an opportunity to vertically integrate steel machining capabilities by acquiring Société Champenoise de Mécanique (SCM), a long-established French firm known for its excellence in small-batch precision engineering. SCM’s core was strong, but its tools were aging. It needed fresh capital, new equipment, and strategic alignment to meet the growing demand for localised, high-tolerance steel parts particularly from Eastern Europe.
Cofisys’ Dual Mandate
Cofisys was brought in to secure two parallel goals:
Cofisys was brought in to secure two parallel goals:
- Structure the M&A transaction between Alu Ferri and SCM, including due diligence, valuation normalisation, and integration planning.
- Design and execute a €5 million fundraising strategy aimed not only at upgrading SCM’s current site but also at extending its production capabilities into Eastern Europe, where demand for agile, near-shore manufacturing is accelerating.
APPROACH: Two Cases, One Strategy
✅ Case 1: Strategic Acquisition (France)
✅ Case 2: Growth Capital & Expansion (Eastern Europe)
- SCM brings essential steel expertise to Alu Ferri's aluminum core.
- Shared clients in rail, defence, and filtration benefit from integrated sourcing and tighter supply chains.
- SCM’s EBITDA was adjusted through detailed normalisation (removal of one-off bonuses and provisions), revealing a clean profitability baseline.
- Key operational upside: replacing €120K worth of amortised CNC tools with new-generation equipment to unlock 2x productivity.
✅ Case 2: Growth Capital & Expansion (Eastern Europe)
- SCM’s capabilities will be mirrored and scaled in a new Eastern European production site (location under review in Poland, Kosovo, or Czech Republic).
- Focus: mid-size series machining for OEMs demanding proximity, shorter lead times, and EU compliance.
- A portion of the capital is allocated to digitising production, enabling predictive maintenance and smart planning across both facilities.
RESULT: Fundraising Use of Proceeds (€5M)
- CNC & production modernisation of €3.0M to replace old equipment, enabling automation
- Working capital buffer of €1.0M to finance WIP and to bridge longer client payment cycles
- Commercial relaunch & digital presence of €0.5M to enable new branding, ERP rollout, marketing to high-value sectors
- Legal & structuring fees of €0.5M to enable M&A completion, regulatory, and investor documentation
Target capital structure: combination of equity, industrial convertible notes, and soft-loan co-financing where available.
Projected Impact by 2029
- 🏭 2 production sites (France + Eastern Europe)
- 💶 €2.5–3M annual revenue
- ⚙️ >12% EBITDA margin
- 📈 ≥15% investor IRR, driven by margin improvement and strategic client wins
- 🔗 Stronger supply chain resilience for European industrial clients
Why Cofisys?
From Precision to Expansion
This is not just an acquisition story. It’s a blueprint for industrial clients and suppliers facing similar growth decisions. Whether you’re looking to consolidate operations, expand capacity, or attract external capital, the Alu Ferri x SCM case shows how Cofisys can de-risk, finance, and execute that journey with precision.
From luxury FMCG to digital banking and public infrastructure, Cofisys helps clients move from fragmented data to intelligent execution platforms faster, safer, and smarter.
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