Eurazeo spins out Fonroche solar division

The spinout creates two distinct groups: one focusing on geothermal and biogas, which will remain under the control of Fonroche’s founders; and another entity focused on solar power, to be majority owned by InfraVia (53%) with Eurazeo staying on as minority shareholder (47%). 

The new entity will be supported by a different division within Eurazeo, as Eurazeo Croissance will now be replaced by Eurazeo Patrimoine, specialised in real assets. Prior to the operation, Eurazeo held a 39.3% stake in the group. The GP has invested a total of €55m in the group to date.

As part of the transaction, Fonroche's carved out entity will be rebranded as Fonroche Solaire and will be fully dedicated to the research and production of photovoltaic solar energy. Growth plans include setting up solar power plants in France and abroad, similar to the ones it already owns in Humacao, Puerto Rico, the company said in a statement. Company CEO Thierry Carcel will keep his position.

Since Eurazeo's investment in 2010, Fonroche has diversified its activities and expanded globally while reinforcing its position in France with the construction of photovoltaic greenhouses and farms in France, where the firm was recently awarded contracts for a total capacity of 36 megawatt peak (MWp). The group also recently started the construction of its first unit for the biogas sector; a cooperation with industrial gas supplier Air Liquide could soon follow, the group added.

InfraVia recently announced the closing of its third European infrastructure fund, InfraVia European Fund III, on €1bn, above its initial target of €750m.

Previous funding
In April 2010, Eurazeo acquired a minority stake in Fonroche, investing €50m through its Eurazeo Croissance fund, launched in 2010 with a €500m target. The investment was made with an immediate equity tranche of €25m, completed by another instalment of the same size scheduled before the end of 2011.

Company
Based in the French city of Rochefort, Fonroche operates in the clean energy sector, specialising in photovoltaic, biogas, geothermal and off-grid lighting systems. Active in 10 countries, the group claims to have 230MWp managed and developed in France and abroad, including 110MWp in owned capacity through its solar division. The group recorded revenues of €100m in 2016.

People
Eurazeo Patrimoine – Renaud Haberkorn (managing partner).
InfraVia – Vincent Levita (CEO).

Advisers
Equity – Compagnie Financière du Lion (corporate finance); Paul Hastings, Guillaume Kellner, Charlotte Pennec, Vincent Nacinovic (legal); Allard de Waal, Etienne Bimbeau (tax); Bird & Bird (legal); Weil Gotshal & Manges (legal).
Vendor – PwC Transaction Services, Guillaume Lorain, Arnaud Thibésart, Adrian Derousseaux, Raphaëlle Oury (corporate finance).

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• Topics
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• Eurazeo
• Secondary buyout