The Carlyle Group closes the sale of Sagemcom to Charterhouse
Paris, France – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has closed the sale of Sagemcom to private equity firm Charterhouse Capital Partners LLP alongside Sagemcom’s management team. Financial terms were not disclosed.
Sagemcom is a French high-tech group with strong positions in high-end digital TV set-top boxes, very high speed broadband residential terminals and advanced smart meters. Under Carlyle’s ownership, Sagemcom has significantly grown its core businesses: the group has increased its international exposure especially in Latin America and North America, and gained a significant share in the roll-out of smart meters in Europe while consistently investing in R&D to maintain Sagemcom’s superior technology edge and innovation expertise.
Patrick Sevian from Sagemcom, said: “I thank Carlyle for its support and understanding of our business since partnering with us five years ago. During these years, we have focused our activities on our main markets, where we have a superior ability to compete and gain new business. Going forward, Sagemcom will engage in a new part of its journey: we want to strengthen our efforts in broadband and energy markets by enabling connected services through the design and supply of customized smart devices for telecom, utilities and other service operators.”
Jonathan Zafrani, Managing Director, Carlyle Europe Partners, said: “Sagemcom has been a great investment for Carlyle. Over the last five years, Sagemcom has been deeply transformed and refocused on its core business: broadband activities and energy solutions, where it has built strong market positions based on innovation, product excellence and operational agility. We deeply thank Patrick Sevian and his team for the dedication and good spirit through these years. We wish them continued success for the future.”
Fabrice Georget, Partner at Charterhouse, commented: “We are excited to back Sagemcom through the next stage of its journey, particularly with the growth in connected devices, the advent of ultra-high definition broadcasts and increased take-up of smart utility meters. We have been following Sagemcom for a number of years and are delighted to have the opportunity to work with Patrick Sevian and his management team.”
Carlyle Europe Partners III, a €5.4 billion buyout fund focused on investment opportunities in Europe purchased a majority stake in Sagemcom in 2011.
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Sagemcom is a French high-tech group of international dimensions, the group operates on the broadband (digital home, set-top boxes, Internet routers, telephony and multimedia terminals), smart city (smart meter, smart grid, smart infra, smart sites and smart services), and Internet of Things markets (founding member of the LoRa Alliance).
With revenue of around €1.3 billion, Sagemcom employs 4,000 people on five continents and ships every year more than 23 million terminals. Sagemcom aims to remain a world leader in communicating terminals with high added value.
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 128 funds and 170 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents.
About Carlyle Europe Partners
Carlyle Europe Partners (CEP) seeks to invest in upper- and mid-size companies in Europe across a wide range of sectors and industries, accelerate their growth and support their efforts to expand internationally. The current fund is now the fourth in the CEP family of funds. The fund is advised by a team of 39 investment professionals across five offices. Capital for this investment came from Carlyle Europe Partners III, which has announced a number of significant exits over the past 12 months, notably including B&B Hotels, Applus, RAC, Telecable, Axalta and MPS.
About Charterhouse Capital Partners LLP
Charterhouse is one of the longest established private equity firms operating in Europe. The firm invests in companies headquartered in Western Europe and works closely with incumbent management teams, backing them and providing active support to drive growth. Charterhouse pursues a highly selective investment approach, partnering with a small number of high-quality companies. Transaction values range from €250mn to €2bn.
Charterhouse is based in London and has a deep bench of experienced investment professionals, with an average partner tenure of 14 years. Since inception Charterhouse has completed over 140 transactions worth an aggregate value of over €50bn.
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