What were the major milestones in your internationalization strategy that led you to generating nearly 95% of your revenue abroad today?
Initially, our international expansion was driven by the need to manage economic costs. In the 1980s, we operated in a strictly European, or even purely French, automotive market, where our primary client was Peugeot. My father initiated our first international push in Europe by prospecting Opel in Germany; we were manufacturing in France and exporting.
Then came the massive push for lowering supply chain costs Component and wiring harness manufacturers started migrating to Southern European countries that had just opened up to the EEC. That drove us to execute our first international M&A operations in 1992, in Spain and Portugal, to offset logistical cost constraints. Subsequently, we made our first Anglo-Saxon acquisition in the UK, thanks to Jean-Noël Mermet at FRENGER, which later became part of Altios.
In 1998, we launched our strategic acquisitions in the US, which was the largest automotive market at the time.
But beyond the economic rationales, there are emotional and cultural drivers. We come from a family of immigrants: my great-grandfather arrived in France during World War I, and my father always wanted to replicate that model of venturing abroad. That global mindset has always been deeply rooted in our corporate culture.
So, it was the global platform strategies of the major automakers (OEMs) that pushed you to follow your clients and set up shop wherever they were manufacturing?
Exactly. Originally, our US expansion was triggered by a request from DELPHI, who wanted global tier-one suppliers to ensure industrial excellence while shrinking their supplier base, because managing too many vendors was excessively costly for them.
In 1998, that marked the launch of our American operations. It took about a decade of restructuring and overcoming crises, but we eventually managed to merge entities and consolidate our market share.
Asia came later: starting in China around 2010, and then India in 2014, where we completed several acquisitions. Today, we are the market leader in India for cable protection and electrical network shielding.
Over all these years, which international success makes you the proudest?
My father’s biggest success, at the time, was the US, because it represented the “American Dream” for his entire generation born in the 1950s. That move allowed us to double the size of the company.
Beyond that, the achievement we are proudest of is acquiring our biggest European competitor, Schlemmer. We executed the deal during the COVID pandemic in May-June, at a time when our own revenue had plummeted by 90%. It was a massive deal – representing 50% of our revenue, with 5 industrial sites and 1,000 employees – and it made us the undisputed leader in Europe.
If you had to cite one regret or failure, and the lesson you learned from it, what would it be?
Perhaps one regret: we had a highly capable partner in China, with a beautiful manufacturing site east of Beijing and an excellent relationship with truly high-caliber people. We repeatedly proposed partnerships to continue co-developing highly specific product segments. We told them: “Look, one day we will be forced to localize in the US due to tariff constraints, which will force us to move, so come with us.” But they refused, and we were forced to sever ties. It was a waste, and we probably handled it poorly. It taught us that we perhaps need to be more directive in order to be more persuasive.
What do you believe is the ideal organizational structure for global success?
This is one of our major ongoing strategic reflections, because our clients’ quest for cost efficiency, technological edge (especially in materials), and proximity forces us to pivot aggressively. Initially, we had a highly centralized organization with shared corporate services across our different geographic hubs. Now, we have shifted to a regionalized structure with operational headquarters per zone, ensuring that Directors can reach any site within a 3- to 4-hour flight on the same day to maximize agility.
For example, our Asian operations are steered from Bangkok. I always say that people need to live where they work. We try to implement “International Lean Management” and push problem-solving back to where the problems actually occur, aligning closely with local legislation and case law, which often differ significantly.
In terms of innovation, what other major shifts are you facing?
The example of China is fascinating. China’s latest Five-Year Plan, the 15th, actively incentivizes Chinese tech companies to form Joint Ventures with European partners to establish a footprint in Europe. In robotics, the dominant global player is Japanese, and the second largest, Kuka, is Chinese. Why is Kuka a leader in Europe? Because they embraced a form of “reverse innovation” by transferring their value chain into Europe. For years, we were spoon-fed a version of globalization where everyone offshored to China. We have to accept that it now works in the other direction as well.
Looking ahead, which international model should be prioritized: organic growth or external growth (M&A)?
I am convinced the right model is a hybrid one. We cannot favor a single channel because our primary objective is capturing market share; therefore, we must approach it through different channels depending on the country. External growth for acquisition and market consolidation, and organic growth for everything else. It is a fantastic stress test to truly understand the value you deliver to clients. We live by the logic of “and”, not “or”. Organic growth forces commercial excellence and a deep understanding of your clients, with incremental financial risk. External growth, in consolidated markets, forces us to take calculated risks regarding our financing capacity and financial balance.
On the ESG front, you established the Delfingen Foundation, which also has a strong international footprint.
You have to trace that back to our family roots, because the Foundation’s core pillars are deeply tied to challenges our family actually lived through. The company was founded because my great-aunt contracted polio at age 5, and my uncle was born with a disability.
The business literally started to provide jobs for two disabled individuals. My grandfather had very little formal schooling because he spoke German in a post-war French village. All these subconscious elements forged our core pillars: access to housing, education, healthcare, and disability support. Despite paying “decent” local wages, there are realities on the ground you simply cannot remain numb to.
My father pushed to create a French-registered foundation in 2007. Later, I added a pillar focused on environmental protection: CO2 capture in coral reef zones and ecosystem preservation. We also partnered with “Plastic Odyssey,” providing them with technical support on microplastics and waste management, alongside developing a recycling base in Cebu, Philippines. We provide funding to local NGOs, but the ultimate goal is for them to become self-sustaining. In return, we ask our employees and their families to volunteer their time for these initiatives. Initially, we allocated 1% of our global net income; today, we have increased that to 2% of the Group’s consolidated net income.
In your view, what should Altios do in the future to continue accelerating its clients internationally?
What drove the success of our early acquisitions was the deep trust between my father and Jean-Noël Mermet. The added value of a partner like Altios must be the ability to forge that exact dynamic-that trusted duo between us and you as the advisor, especially during the negotiation phases. We also expect deep, localized territorial experience from you, because local business practices are everything. When acquiring family-owned companies, you must connect with the family and understand the structure from the inside out. This is fundamental because the emotional drivers outweigh everything else; price alone does not guarantee a successful deal. It is this blend of having the right local partner and a relationship built on absolute trust.
Finally, what three pieces of advice would you give a CEO looking to accelerate their international development?
First, for an owner-operator, you have to truly want it. Going global is, above all, a matter of deep personal motivation, just as it was for my father.
Second, accept that it will take time and require boots on the ground. You have to be physically present; relocating yourself is often necessary.
Finally, at some point, you have to stop being afraid and impose your vision. Particularly in M&A: the one signing the check is the one who decides.
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