Eurazeo's 3S Photonics goes bankrupt

According to Eurazeo, the Tribunal de Commerce d'Evry initiated bankruptcy proceedings for the company today. The bankruptcy has made an approximate €40m impact on Eurazeo's NAV and consolidated income statements.

The company's bankruptcy stems from the loss of its primary product line in November 2011 due to major flooding in Bangkok, Thailand. The management introduced a year-long restructuring plan but the company was unable to offset the loss to its subsea business with the development of new product lines.

According to Eurazeo, the company is already in discussions with several potential buyers.

Eurazeo held an 86% stake in 3S via Eurazeo Croissance and invested a total of €36m in the business in 2011, which at the time gave the company an enterprise value of €46m – equivalent to 12x EBIT for the year ending June 2011.

The firm acquired 3S in October 2011 from Alto Invest, BPI France (then FSI Régions) and Midi Capital, according to unquote" data. The three businesses had backed 3S in May 2009 with a €12.95m investment.

Founded in 1994 and headquartered in Nozay, 3S is a manufacturer of optical components and opto-electronics for underwater telecommunications and terrestrial broadband telecommunications. The company reported a €42m turnover last year, down from the €50m reported for 2011.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• France
• Industrials
• Eurazeo
• France