Eurazeo acquires a stake in Eowin

This is the fourth acquisition made by the Eurazeo Corporate Relance fund since its launch in 2022. 

The activities of both groups

Created in 2001 from the merger of Azeo and Eurafrance, Eurazeo is a major player in private market asset management. With €35 billion in assets under management (as at March 31, 2023) and nearly 600 portfolio companies invested or financed, Eurazeo is one of Europe's leading private equity players. In addition to private equity, the company deploys two other asset classes: Private Debt & Real Assets.

Read more: Olivier Millet (EURAZEO): 5 decades of experience in Private Equity (Welcome to Capital)

Founded in 1989, Eowin has gradually become a leader in content creation and management. The group's positioning covers the entire information lifecycle: production, management, enhancement, and archiving. The company employs 650 people in France, and operates in all industrial sectors, in particular aeronautics, defense, energy, telecoms, chemicals, and pharmaceuticals.

In recent years, the company has extended its reach into new sectors and broadened its range of services. This strategy has enabled the company to establish itself as a market leader, with revenues approaching €40 million. 

Eurazeo takes over Hivest's stake in Eowin

The Eurazeo group, together with Trocadero Capital Partners and Bpifrance, structured a non-sponsored deal to enable the exit of Hivest Capital Partners, architect of the majority buyout in 2020.

Together, they injected 20 million euros (50% Eurazeo, 30% Trocadero, 20% Bpifrance), securing a majority stake while leaving the majority voting rights to the managers. Thanks to this financing, Eowin plans to double in size and is targeting future acquisitions.

Founded in 2016, Hivest Capital Partners is an independent French private equity firm based in Paris. In 2020, the company finalized the acquisition of Amplexor Business Services, ex-Eowin, following a demerger of Amplexor at the end of 2020. 

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What is "sponsorless"?

A sponsorless, or LBO sponsorless, is a Leveraged Buy Out (LBO) set up without an investment fund. The latter, when present, is called the sponsor.

In a LBO sponsorless, the acquisition is financed mainly from the target company's internal resources, such as cash flow. 

Leverage Buy Out (LBO)

A leveraged buyout (LBO) refers to the process of one company acquiring another using mostly borrowed funds to carry out the transaction. i.e., the acquisition of a "target" company through significant use of financial debt.

The aim is to maximize the return on the capital invested at the time of acquisition, while committing as little equity as possible.

A holding company takes out a bank loan to finance the LBO. The funds borrowed will be repaid by the dividends generated by the target company. 

Read more: The advantages and disadvantages of an LBO for a target company