October 2011 – Bertrand Dumon acted as adviser to 3S Photonics for the purchase of financial investors’ shareholdings by Eurazeo

Paris, October 17th 2011 – Bertrand Dumon acted as adviser to 3S Photonics for the purchase of financial investors’ shareholdings by Eurazeo Croissance

Alcatel Optronics, which was purchased by Mr. Alexandre Krivine, Mr. Didier Sauvage and Bego Conseil & Investissement in 2007 and, following a successful turnaround, was financed by the Fond Stratégique d’Investissement (FSI – a French state investment fund) in June 2009, is now part of Eurazeo Croissance. Eurazeo paid 37 million Euros to obtain 83% of the stock and capitalise on broadband and the industrial fibre-based laser sector.

3S Photonics is a world leader in the manufacture of optical and opto-electronic components for use in submarine and land based telecommunications systems for defence, medical and industrial purposes. Eurazeo paid 27 million Euros for the shares of several exiting investors including the FSI (18%), Alto Invest, Midi Capital and several small shareholders, and will inject 10 million Euros through an increase in share capital. The management team of Alexandre Krivine and Didier Sauvage retain the remaining shares in the company that is valued at 46 million Euros, equivalent to 12 times its EBIT at the end of June 2011.

Strong broadband expertise

Eurazeo Croissance was looking for the opportunity to invest in telecommunications. “3S Photonics has historically operated in the submarine telecommunication applications sector and has considerable expertise in broadband and long distance transmission” says Fabrice de Gaudemar, a board member at Eurazeo Croissance for whom this is the second investment after Fonroche. “Nowadays, with the explosion in internet use and, especially, video use on mobile telephones, land based networks require the same bandwidth as submarine links.” This operation has provided Eurazeo with a staff of 400 and two production units, one in France, which is specialised in the manufacture of laser chips, and the other in Canada, which engraves fibre optics.

Turnover of 51 million Euros

In 2009, the FSI invested to support Alexandre Krivine’s plan to purchase and manage this company which owns solid know-how and the latest technologies. Internal growth and the acquisition of Canadian company, Avensys, at the end of 2009 allowed 3S Photonics to consolidate its position as a leader in submarine telecommunications, doubling its revenues which are now of 51 million Euros. Eurazeo now intends to consolidate 3S Photonics’ s position in its traditional telecommunication market and develop a greater presence in the industrial fibre laser market. “These two markets are growing very fast and are very fragmented. There are plenty of acquisition opportunities” specifies the new owner who intends to provide financing for the company’s external growth strategy.


Acquirer or investor
EURAZEO CROISSANCE: Fabrice de Gaudemar

FONDS STRATEGIQUE D’INVESTISSEMENT (FSI): Jean d’Arthuy, Thierry Sommelet, Sébastien Blot, Hervé Coindreau
BEGO CONSEIL & INVESTISSEMENT: Claudia d’Alberti della Briga

Company & Management, Corporate Lawyer
Bertrand Dumon, Bastien Moraga

Acquirer, Corporate Lawyer
LATHAM & WATKINS: Nicolas Bombrun

Acquirer, financial due diligence
ERNST & YOUNG TS: Emmanuel Picard, Julien Guintrand

Acquirer’s strategic adviser
YOLE DEVELOPPEMENT: Jean-Christophe Eloy

Acquirer, other due diligence
BEAU DE LOMENIE: Pierre-Louis Désormière