Carlyle in exclusivity for HGH Infrared Systems

Kenny Wastell
18 May 2018

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The Carlyle Group has entered into exclusivity over the acquisition of a majority stake in HGH Infrared Systems, a France-based provider of infrared and optoelectronic systems and software.

Carlyle is to draw equity from Carlyle Europe Technology Partners III – a €656m fund that makes investments of €20-60m in companies valued at €25-150m – to fund the transaction. Unquote understands that the fund will be approximately 55% deployed following the transaction.

Following the proposed deal, which comes two years after HGH acquired Electro Optical Industries from Blue Wolf Capital, the business intends to pursue international expansion.

A source told Unquote that HGH currently generates 48% of its revenues from operations in the Asia-Pacific region and will specifically focus on expansion in the US market under Carlyle's tenure.

The transaction is subject to employee and regulatory approval and is scheduled to complete in H2 2018.

Company
Founded in 1982 and headquartered in Igny, near Paris, HGH develops infrared and optoelectronic systems and software for use in surveillance, industrial testing, industrial measurement and industrial thermography. It serves clients in the security, defence, oil and gas, and energy industries. The company operates two research and development centres, one of which is located in Igny and the other in California.

It is understood that the company is projecting revenues of €23m in 2018, up from €20m in 2017, and that turnover has doubled in the last three years.

HGH has a headcount of 83, of whom 30 are senior research and development engineers.

People
Carlyle Europe Technology Partners – Vladimir Lasocki (managing director); Cyril Bourdarot (associate director).
HGH Infrared Systems – Thierry Campos (CEO).