Cinven’s Acquisition of a Majority Stake in Euro Techno Com

Shearman & Sterling advised Carlyle and other shareholders in the deal. Freshfields advised Cinven. De Pardieu Brocas Maffei advised the founders of EuroTechnoCom.

Carlyle and other shareholders announced the entry into exclusive negotiations to sell a controlling stake in Euro Techno Com Group (“ETC” or the “Company”), a leading “one-stop shop” value-added distributor for the telecom network and technology infrastructure industry, to Cinven. As part of the transaction, Carlyle will re-invest for a significant minority stake.

Carlyle invested in ETC through Carlyle Europe Technology Partners (“CETP”) IV, a €1.35 billion fund that invests in small and mid-market technology-focused opportunities. Through Carlyle’s partnership with Founder Cédric Varasteh, ETC has delivered exceptional growth. The Company has tripled revenue which exceeded €1 billion in 2021, increased staff from 440 to 1,100 employees, and has expanded its geographic footprint from 4 to 12 countries—consolidating a strong position in the attractive U.S. market, which represents more than half of its sales. Leveraging its deep technology and telecom sector experience, Carlyle has supported ETC’s organic growth through investment in new product segments (mobile, datacenter, metrology) as well as R&D for ETC designed products and innovative solutions. Carlyle has supported the business through M&A, transforming ETC into a leading consolidation platform in a highly fragmented market, notably with the acquisitions of Comtec in the U.K., and Walker & Associates and Comstar Supply in the U.S. Cédric has worked with Carlyle to implement operational and organizational changes to strengthen the Company’s management capabilities and increase its scale.

The transaction is subject to works council consultation and customary regulatory approvals.

The Shearman & Sterling team included Xavier Norlain, Matthieu Lampel, Vanessa Hamiane and Benjamin Benzakine.

The Freshfields team included Nicolas Barberis, Julien Rebibo, Myriam Khetib-Khatiri, Brice Trevisan, Manon Faurie, Nora Chekhab, Stéphanie Corbière, Samvel Der Arsenian, Christel Cacioppo, Célia Kirren, Martin McElwee, Konstantin Bondarenko, Stephanie Brown Cripps.

The De Pardieu Brocas Maffei team included Jean-François Pourdieu, Matthieu Candia, Anne-Laure Drouet, Enguerrand Maloisel.

Involved fees earner: Matthieu Candia – De Pardieu Brocas Maffei; Anne-Laure Drouet – De Pardieu Brocas Maffei; Enguerrand Maloisel – De Pardieu Brocas Maffei; Jean-François Pourdieu – De Pardieu Brocas Maffei; Nicolas Barberis – Freshfields Bruckhaus Deringer LLP; Konstantin Bondarenko – Freshfields Bruckhaus Deringer LLP; Stephanie Brown Cripps – Freshfields Bruckhaus Deringer LLP; Christel Cacioppo – Freshfields Bruckhaus Deringer LLP; Nora Chekhab – Freshfields Bruckhaus Deringer LLP; Stéphanie Corbière – Freshfields Bruckhaus Deringer LLP; Samvel Der Arsenian – Freshfields Bruckhaus Deringer LLP; Manon Faurie – Freshfields Bruckhaus Deringer LLP; Célia Kirren – Freshfields Bruckhaus Deringer LLP; Martin McElwee – Freshfields Bruckhaus Deringer LLP; Julien Rebibo – Freshfields Bruckhaus Deringer LLP; Brice Trevisan – Freshfields Bruckhaus Deringer LLP; Myriam Khetib-Khatiri – Mayer Brown; Benjamin Benzakine – Shearman & Sterling; Vanessa Hamiane – Shearman & Sterling; Matthieu Lampel – Shearman & Sterling; Xavier Norlain – Shearman & Sterling;

Law Firms: De Pardieu Brocas Maffei; Freshfields Bruckhaus Deringer LLP; Mayer Brown; Shearman & Sterling;

Clients: Carlyle Group; Cinven; Varasteh Cédric;

Naoual Sadouqi

Author: Naoual Sadouqi