Tracking the Progress of Artificial Reefs’ Construction in Brittany, Northwest France

Tracking the Progress of Artificial Reefs’ Construction in Brittany, Northwest France

Récifs Goëlo, a non-profit environmental association based in Côtes-d’Armor, one of Brittany’s coastal cities, has been dedicated to protecting the maritime ecosystem via artificial reefs in the northwest coast area of France since its establishment in 2016. Like French Mediterranean coast cities, Côtes-d’Armor chose to develop artificial reefs with the long-term objective of increasing biological production in impoverished marine areas and promoting the recovery of the natural environment degraded by human activities. “We had to be tenacious, but we are happy to reach the finish line,” said Michel Rickauer and Michel Brulard, respectively, President and Secretary of Récifs Goëlo.

The artificial reefs, which have been placed on three different sites on the coast of Bilfot, Côtes-d’Armor, are the concretization of several years of discussion and reflection. The idea behind this project was triggered by a group of local sailors who were preoccupied with the deteriorating state of maritime biodiversity in Côtes-d’Armor.

An artificial reef is a human-made and biomimetic submerged structure deliberately placed on the seabed to mimic some functions of a natural reef, such as protecting, regenerating, and concentrating populations of living marine resources. It provides shelter for various species; for instance, it serves as a crucial spawning and foraging habitat for many commercially and recreationally fish species. Furthermore, due to the threat of climate change, both global warming and ocean acidification are affecting marine life, leading to natural coral reefs being bleached and algae being expelled. To avoid the degradation of these marine ecosystems and at the same time encourage their reconstruction, initiatives related to the creation of artificial reefs have emerged globally. Nevertheless, a close and timely monitoring and evaluation of the ecological impacts of artificial reefs are essential to avoid any misplacement or becoming the habitat for invasive species such as the orange-cup coral. 

The roadmap of artificial reefs was initially sketched by Récifs Goëlo to enhance the biodiversity in Bilfot by concentrating as many species as possible around the specifically produced concrete blocks and to see the evolution of the ecosystem and the impact on the surrounding areas. The move caught the attention of the National Museum of Natural History of Dinard (MNHN), which was working on a similar study. The museum then decided to join the environmental protection forces in order to gain more public attention and momentum.

This allowed Récifs Goëlo to raise 100,000 euros in financing to support the project. The Sea and Coastline Commission, which oversees the regional subsidies and the European fund for Maritime and Fishing Affairs (FEAMP), ruled a favorable verdict in May 2021. Three years after application, Récifs Goëlo received a subvention of 80% of the total amount (40% from the region and 40% from FEAMP), while the rest was provided by individual donators and companies that support the movement.

The artificial reefs are locally made and assembled in Caen, a commune in north-western France, by a French engineering college called Ecole Supérieure d’ingénieurs des Travaux de la Construction (ESITC), according to one of MNHN’s scientists. With a diameter of 1.6 meters and height of 1.30m, each artificial reef weighs 3.3 tonnes and has three circular parts, among which two contain shell waste. The artificial habitat will facilitate the proliferation and development of algae, which are key species for the area.

In the meantime, the museum and Récifs Goëlo would cooperate in training twenty divers: ten from Paimpol diving club (ASSSUB) and ten from Saint-quay-Portrieux (Narco Club), with a scientific approach to enable them with the capabilities to monitor the site for the following two years. MNHN is responsible for data collection and analysis as well as study reports. In return, they send their findings to Récifs Goëlo, which will publish the data to the public and media. Récifs Goëlo plans to involve the public with the reef experimentation for more awareness of maritime challenges. “The first thing is to learn about local biodiversity, and then we shall be able to see the evolution across time,” said Michel Rickauer.

However, time and patience are needed to observe concrete achievements. “In our region, for reefs like this to reach an equilibrium state, they will need five to seven years before we can see actual changes. That is why we spent one year for scientific monitoring before, which set the core and basis of the program. Later, the diving club will check the evolution and colonization of the reefs over time,” added Michel Rickauer. “We often say that reefs are the witnesses of climate change, and Récifs Goëlo will be able to certify that. We should also keep in mind that people tend to care more about environmental issues in places they know than big discussions at the global level.”

Armor Capital is proud to be a sponsor of Récifs Goëlo since its founding and is delighted to see the progress and achievement made so far. Armor Capital wishes Récifs Goëlo the best for the future.

About Armor Capital

Armor Capital has supported business owners in capital financing, M&A advisory, and valuation since 2009. We are served by a core team of experienced professionals and a global network of expert sources. Our partners, Guillaume Caillet, Jean Giorgis, and Fabrice Govin, combine 60 years of experience in the US, Europe, and Asia-Pacific, and lead a team of over ten M&A professionals based in Paris, Hong Kong, and mainland China. Enhanced by practical knowledge and motivated by the success of our clients, our team has a commitment to ethics, integrity, and performance. We boast expertise in corporate finance, private equity, cross-border business development, and entrepreneurship.

APAC Logistics Industry Report H1 2020

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APAC Logistics Industry Report H1 2020

Published on 29 October 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific logistics industry for the first half of 2020.

Logistics is one of the key sectors which Armor specializes in and closely follows market trends. Please contact us for further discussions.

Valuations of Asia Pacific’s public companies were lower over the last two quarters ending June 2020. EBITDA multiples were over 17.7% lower by the end of Q2-2020 (10.7x in Q2-2020 vs 13.0x in Q2-2019).

Based on 90-100 selected companies, the table above illustrates that industry returns are on a downturn, while companies’ margins have been stable over the past five years. Leverage ratios indicate improved financial positions over the past few years.

While H2-2019 were characterized by smaller sized transactions, H1-2020 saw significantly sized deals, pushing up the total transaction volume. Although we observed a smaller M&A deal count in H1-2020, the total transaction value is higher in H1-2020 vs H1-2019.

Armor selected the largest M&A transactions across the region in H1-2020 for which information on implied enterprise value (EV) was available. The median EV/revenue multiple that investors paid was 1.5x.

Source: S&P Capital IQ, Armor Capital Analysis

Logistics is one of the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Paper Packaging Industry Report H1 2020

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APAC Paper Packaging Industry Report H1 2020

Published on 29 October 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific paper packaging industry for the first half of 2020.

Paper packaging is one of the key sectors which Armor specializes in and closely follows market trends. Please contact us for further discussions.

Valuations of Asia Pacific’s public companies have lowered slightly in the first quarter of 2020 compared to the same period in 2019, but bounced back in the second quarter.

Based on 200-300 constituent companies, the table above reflects that industry margins have been on a downtrend from its peak in 2018 (latest net income margin is 1.9% vs 3.5% in 2018). Over the same period, leverage of the industry constituents has increased and profitability has decreased.

Most of the paper packaging industry deals in the reported period were in the lower mid market segment (except Q2-2020 and Q1-2019 in which data were unavailable). The transaction values in Q4-2019 and Q2-2019. were pushed upwards by one large deal in each respective quarter. Overall, deal activity was down in the first half of 2020.

Armor selected the largest M&A transactions across the region in H1-2020 for which information on implied enterprise value was available. The largest transaction in the period was the acquisition of Tailim Packaging – a South Korean company which manufactures corrugated boxes – in which the total transaction value was USD 347m.

Source: S&P Capital IQ, Armor Capital Analysis

Paper packaging is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Software Industry Report H1 2020

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APAC Software Industry Report H1 2020

Published on 29 September 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific Software industry for the first half of 2020.


Software is one of the key sectors in which Armor specializes in and closely follows market trends. Please contact us for a further discussion.

Valuations of Asia Pacific’s public companies have increased every quarter since Q2-2019. Median EBITDA was 44.4x by the end of Q2-2020 vs. 27.4x in Q2-2019 – an increase of 62% year-on-year.

Based on 400-500 selected companies, the table above illustrates that the industry returns have declined over the past few years. Meanwhile, although there is remarkable difference in industry margins between 2017 and 2018, it has remained relatively stable for the past 3 years.

M&A activity (majority stake only) by volume has maintained at 121 in H1-2020, an increase of 14% compared to the same period last year (there were 106 deals in H1-2019). Most of the deals were in the lower to mid-market segment, while 1 transaction drove most of the total transaction value in Q1-2020 (acquisition of Plaid Inc. by Visa Inc. at USD 4,900m).

Armor selected the largest M&A transactions across the region in H1-2020 for which information on Implied Enterprise Value were available. The most remarkable transaction was the acquisition of Creative Knowledge, a Singapore-based company which develops digital education products and solutions. (While the largest transaction was Visa Inc.’s acquisition of Plaid Inc., the relevant multiples of the transaction were private.)

Source: S&P Capital IQ, Armor Capital Analysis

Software is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Education Industry Report H1 2020

APAC Education Industry Report H1 2020

Published on 18 September 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific education services industry for the first half of 2020.

Education is one of the key sectors in which Armor specializes in and closely follows market trends. Please contact us for further discussion.

Valuations of Asia Pacific’s public companies fluctuated over last 6 quarters ending June 2020. H1-2020 was characterized by lower multiples, EBITDA multiples were almost 33% lower by the end of Q1-2020 (10.8x in Q1-2020 vs 16.1x in Q1-2019) and almost 21% by end of Q2-2020 (12.5x in Q2-2020 vs 15.8x in Q2-2019).

Based on around 130 selected companies, the table above illustrates that industry returns and margins have been decreasing over the last eight months (latest values) in comparison with 2019.

Overall, first half of 2020 was characterised by lower M&A deal count, while total transaction value continue to show large fluctuations and is pushed up by a few large deals (e.g. China Distance Education – EV USD 284.3m).

Armor selected the largest M&A transactions across the region in 2020 H1 for which information on Implied Enterprise Value (EV) was available. Two transactions stand out, the acquisition of China Distance Education and the acquisition of Harbin Institute of Petroleum.

Source: S&P Capital IQ, Armor Capital Analysis

Education is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Healthcare Industry Report H1 2020

APAC Healthcare Industry Report H1 2020

Published on 9 September 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific healthcare industry (equipment and services) for the first half of 2020.

Healthcare is one the key sectors in which Armor specializes in and closely follows market trends. Please contact us for further discussions.

Valuations of Asia Pacific’s public companies have increased significantly over H1-2020 compared to the same period in 2019. Median EBITDA was 35.4x by the end of Q2-2020 vs. 18.7x in Q2-2019 – an increase of nearly 39% year-on-year. In addition, there has been changes in the top 50 constituents, reflecting movement in the competitive environment of the industry.

Based on 400-500 selected companies, the table above illustrates that industry returns and have been stable for the past 4 years, with a slight dip in the latest statistics. Similarly, industry margins have been lower in the latest statistics in comparison to the past 2 years.

M&A activity by volume has been lower over the past 2 quarters with 55-59 transactions (majority stake only) per quarter. The first half of 2020 had fewer mega deals compared to the second half of 2019, lowering the total transaction value for these 2 quarters.

Armor selected the largest M&A transactions across the region in H1-2020 for which information on Implied Enterprise Value and selected multiples were available. The data shows a wide range of multiples for acquisitions.

Source: S&P Capital IQ, Armor Capital Analysis

Healthcare is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Paper Packaging Industry Report H2 2019

APAC Healthcare Industry Report H2 2019

Published on 27 May 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific Paper Packaging industry for the second half of 2019.

Paper Packaging is one of the key sectors which Armor specializes in and closely follows market trends. Please contact us for further discussions.

Valuations of Asia Pacific’s public companies have been relatively stable in H2-2019 compared to the same period in 2018. Median EBITDA increased slightly from 7.2x in Q3-2019 to 7.4x in Q4-2019 while EBIT remained the same at 12.4x.

The table above reflects that industry margins are on a downtrend from its peak in 2018 (latest net income margin is 0.2% vs 7.4% in 2018). Over the same period, leverage of the industry constituents have increased. Returns have lowered in the recent years.

With the exception of Q1-2019, each quarter saw 7-9 deals in APAC’s Paper Packaging. Most of the deals were in the lower mid market segment, while in Q4-2019 a transaction in Australia drove most of the total transaction value (Australasian Fibre Business of Orora Limited – transaction value USD 1,163m), this was also the case for Q2-2019.

Armor selected the largest M&A transactions across the region in H2-2019 for which information on Implied Enterprise Value was available. Although the largest transaction by value was driven by an Australian deal (see above), the transaction details were private.

Source: S&P Capital IQ, Armor Capital Analysis

Paper packaging is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Healthcare Industry Report H2 2019

APAC Healthcare Industry Report H2 2019

Published on 27 May 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific healthcare industry (equipment and services) for the second half of 2019.

Healthcare is one the key sectors in which Armor specializes in and closely follows market trends. Please contact us for further discussions.

Valuations of Asia Pacific’s public companies have increased over H2-2019 compared to the same period in 2018. Median EBIT was 31.2x by the end of Q4-2019 vs. 25.1x in Q4-2018 – an increase of nearly 24% year-on-year.

Based on 400-500 selected companies, the table above illustrates that industry returns and have been stable for the past 4 years, with a slight dip in the latest statistics. Meanwhile, industry margins have shown improvements in 2019 and the latest statistics (especially in gross margin and EBITDA).

M&A activity by volume has been relatively consistent over the last 6 quarters with 59-74 transactions (majority stake only) per quarter. The second half of 2019 was characterised by a few mega-deals (e.g. Hitachi’s diagnostic imaging related business) pushing up the total transaction value for the year.

Armor selected the largest M&A transactions across the region in H2-2019 for which information on Implied Enterprise Value and selected multiples were available. The data shows a wide range of multiples for acquisitions.

Source: S&P Capital IQ, Armor Capital Analysis

Healthcare is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Logistic Industry Report H2 2019

APAC Logistics Industry Report H2 2019

Published on 6 March 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific logistics industry for the second half of 2019.

Logistics is one of the key sectors in which Armor specializes in and closely follows market trends. Please contact us for further discussion.

Based on quarterly data, valuations of Asia Pacific’s public companies in Q4-2019 (based on EBIT) is at a similar level as Q3-2018.

Based on 90-100 selected companies, the table above illustrates that industry returns are on a downturn, while companies’ margins have been stable. Leverage ratios indicate improved financial positions over the past few years.

M&A deal count in H2-2019 remain lower than in H2-2018. The total transaction value in H2-2019 was less than a quarter of H2-2018 (USD 1,331m vs. 253m), mainly due to smaller sized transactions in 2019.

M&A deal count in H2-2019 remain lower than in H2-2018. The total transaction value in H2-2019 was less than a quarter of H2-2018 (USD 1,331m vs. 253m), mainly due to smaller sized transactions in 2019.

Source: S&P Capital IQ, Armor Capital Analysis

Logistics is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Education Industry Report H2 2019

APAC Education Industry Report H2 2019

Published on 15 May 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific education services industry for the second half of 2019.

Education is one of the key sectors in which Armor specializes in and closely follows market trends.Please contact us for further discussion

Valuations of Asia Pacific’s public companies were lower over last 5 quarters ending December 2019. EBITDA multiples were over 29% lower by the end of Q4-2019 (12.0x in Q4-2019 vs 17.1x in Q3- 2018).

Based on around 250 selected companies, the table above illustrates that industry returns and leverage ratios have been relatively stable over the past five years. Companies margins reflect an upwards trend (EBITDA margin +4.6% between 2016 and beginning of May 2020).

Overall, Q3-2019 and Q4-2019 was characterized by lower M&A deal count, while total transaction value continue to show large fluctuations. In particular, the total transaction value in Q3-2019 was pushed up by a few large deals (e.g. Jinan Shuangsheng Education Consulting Company Limited – EV USD 234m).

Armor selected the largest M&A transactions across the region in H2 2019 for which information on Implied Enterprise Value (EV) was available.

Source: S&P Capital IQ, Armor Capital Analysis

Education is one of the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com