Eurazeo China Acceleration Fund invests €80m in DORC

Alessia Argentieri
28 July 2020

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Eurazeo China Acceleration Fund (ECAF) has invested €80m in vitreoretinal surgery Dutch Ophthalmic Research Center (DORC), which is a portfolio company of Eurazeo Capital IV.

This is the first investment made by ECAF, which supports French and continental European companies aiming to open new pathways for growth in China.

Target companies are expected to be active in sectors with significant opportunity in China and where Eurazeo has an established and strong track record, including advanced industrials, business services, consumer goods and services, healthcare, and digital technology.

The fund, launched by Eurazeo in partnership with BNP Paribas and China Investment Corporation (CIC), has a final target of €1-1.5bn. It held a €400m first close in June 2020. Eurazeo is responsible for directing the fund's strategy, selecting its investments and managing the portfolio.

At present, Eurazeo provides 50% of ECAF's commitments. The impact on its cash position in this deal amounts therefore to €40m.

Eurazeo intends to support DORC's expansion in China, where growth in the vitreoretinal surgery market is expected to be in the range of 15-20% in the coming years, according to the firm. The company will gain access to the networks of local experts built up by China Investment Corporation, BNP Paribas and Eurazeo, the fund's three partners.

Eurazeo acquired DORC from Montagu Private Equity in a €300m deal in March 2019. The GP invested €75m via its €2.5bn Eurazeo Capital IV and €225m from its balance sheet.

Company
Established in 1983 and headquartered in Zuidland, DORC operates in the medical technology sector, specialising in vitreoretinal surgery.

The company designs, manufactures and distributes ophthalmic surgery equipment, as well as disposable and reusable instruments, liquids and machinery.

DORC serves 5,700 surgeons across 80 countries and employs a staff of around 500 people. It generated revenues of €135m in 2019.

People
Eurazeo – Marc Frappier (managing partner, head of Eurazeo Capital).