Eurazeo Acquires 3S Photonics
The firm will also be investing in a capital increase of €10 million to finance 3S Photonics’ growth, for a total equity investment of €37 million by Eurazeo. Following the equity increase, Eurazeo will hold close to 83% of 3S Photonics’ capital.
Eurazeo has signed the acquisition of 3S Photonics, a French high technology company, specialising in opto-electronic components.
This second investment by Eurazeo Croissance, following its investment in Fonroche, is part of Eurazeo’s policy to support the development of French SMEs. Eurazeo is purchasing the holdings of several investors, including those of Fonds Stratégique d’Investissement (FSI) for which 3S Photonics had been one of its first investments.
Eurazeo will also be investing in a capital increase of €10 million to finance 3S Photonics’ growth, for a total equity investment of €37 million by Eurazeo. Following the equity increase, Eurazeo will hold close to 83% of 3S Photonics’ capital.
3S Photonics, formerly Alcatel Optronics, manufactures optical and opto-electronic components for submarine telecoms applications, the company’s historical core business, as well as for terrestrial telecoms applications. The company is active in two high-growth global markets, high-speed telecoms networks and industrial fibre lasers, supplying products for industrial, medical and defence applications.
The company has two production centres, virtually unique in the world; one in France specialised in the manufacture of laser chips and the other in Canada producing optical fibres.
3S Photonics generated revenues of €51 million in Fiscal 2011 (ended June 30, 2011) and employs approximately 400 people.
Eurazeo will help 3S Photonics consolidate its position in its traditional telecoms markets and broaden its presence in the industrial laser market. It will be supporting the company’s external growth policy, including through future reinvestment.
Fabrice de Gaudemar, Eurazeo Executive Board member responsible for Eurazeo Croissance, said, "We are pleased to be making this investment which reflects our intention to contribute to accelerating the growth of high potential companies. Eurazeo continues to play its role as a professional and responsible shareholder supporting strong SME development. We will be supporting Alexandre Krivine and his team, continuing the work begun with the help of FSI to make 3S Photonics a true global leader in the opto-electronic components market."
Alexandre Krivine, President of 3S Photonics, added, "We are gratified by Eurazeo’s entry into our capital structure. With their support, we look forward to accelerating our organic and external growth and seizing opportunities offered by the international consolidation of our industry."
Thierry Sommelet, Director of Investment of FSI, commented, "FSI's intervention in 2009 facilitated a first round of financing, helping to enable 3S Photonics' acquisition of Avensys. We are pleased that 3S Photonics will be able to continue its development with the support of a recognized leader in France's private equity industry."
Eurazeo held a conference call on October 13 to comment on the announcement. To participate in the call, please dial + 44 (0) 203 367 9457. A presentation is available on the home page of the Group's website www.eurazeo.com A re-broadcast of the call will be available on +44 (0) 203 367 9460 (reference: 274560#)