FORGING AN INTERNATIONAL ENTERPRISE

Nineteen-seventy-three was a year of crisis, with Zodiac in the red. But the arrival of a new, young team at the top-Didier Domange as Supervisory Board Chairman and Jean-Louis Gerondeau as Executive Committee Chairman-gave fresh hope to a discouraged workforce. Zodiac also turned to the recently-established French Institute of Industrial Development (IDI), which was helping undercapitalized small companies to strengthen their financial base. The key priority in 1975 was to get the company back on an even keel. In every sense of the word, boats remained Zodiac's flagship business.

The successful launch of Zodiac of North America and Zodiac Española SA was followed by the establishment of new foreign subsidiaries in Greece (Zodiac Hellas, 1977), Italy (Zodiac Italia, 1978), Argentina, and Germany (Zodiac Deutschland, 1979).

In 1978, Zodiac's growing interest in the aeronautical market led to the acquisition of Aérazur and EFA. These formed the nucleus of what later became the Aeronautical segment of the Zodiac Group. Zodiac strengthened its core marine business by taking over the marine and aeronautical divisions of Bombard-L'Angevinière in October 1980, and Sevylor-number one European manufacturer of inflatable products-the following year. Two other local marketing subsidiaries were formed in 1982: Zodiac UK and Zodiac Holland.

Zodiac's entry into the Paris Bourse "second market" (OTC market) on February 7, 1983, came as the crowning step in this five-year progress. The company was the first in France to be listed on this new exchange, designed to allow small companies to raise equity. Meanwhile, Zodiac pursued its global expansion through its subsidiaries. The 1987 acquisition of Air Cruisers marked a new step in overseas growth : the first major international diversification. Since then, the Zodiac Group has acquired many other european and international companies such as Pioneer in 1988, Weber Aircraft in 1992, MAG Aerospace in 1998, Intertechnique in 1999, Esco in 2002, Icore in 2003, Avox and Polaris in 2004 and C&D Zodiac in 2005. Today, the Zodiac Group counts 60 companies implemented all over the world.

After more than a century, the firm started by Maurice Mallet in 1896 has become a major international enterprise. It owes its success, first and foremost, to its original shareholders. Even during the most critical periods or when faced with cash-flow problems, they kept their faith in the family business. Zodiac has also drawn on the talent of inventive engineers, particularly the turn-of-the-century balloonists and Pierre Debroutelle, father of the modern inflatable boat. Lastly, Zodiac owes a great debt to world-renowned ambassadors, defenders of safety at sea and the environment-Captain Jacques-Yves Cousteau and Dr. Alain Bombard in particular.

In recent years, the Zodiac Group has achieved dominance in previously untapped markets, often consisting of specialized niches. These, however, are sensitive to consumption swings and currency fluctuations. Zodiac's strategy of regular acquisitions and its concern to maintain a consistent industry focus led it to refocus on its core segment: aeronautics. The marine segment was acquired by Carlyle, a private equity firm with whom the Group jointly acquired the US company Waterpick the previous year. The same year, after 34 years with running the Group, Jean-Louis Gerondeau transmitted the Presidency of the Directory Board to Olivier Zarrouati, CEO of the Group’s Aerospace Business. In 2008, Zodiac pursues its strategy of external growth, acquiring three companies specialized in cabin interiors : Driessen, TIA and Adder. At these operation end of the year, the Group is organised in six business segments, operating on three business areas. And beginning of 2009, highlighting the refocus move initiated in 2007, the Group’s shareholders’ meeting votes the new name: Zodiac Aerospace.