Buyout Investments

Photonis

Activity

The Photonis group is the world’s leader in the development, production and sale of optronic components (light intensifier tubes, photomultiplier tubes, micro-channel plates, etc.) for the detection and amplification of very low levels of light. There is a broad range of applications which includes nuclear medical imaging (gamma cameras, PET Scanners, etc.), night vision (binoculars and goggles, especially for defence), the industrial and scientific markets, etc. The Photonic group has revenue of nearly €130m and operates from five manufacturing plants located in France, the Netherlands and the USA. It employs over 1,000 people.

The Group was formed when AXA Private Equity bought Photonis in December 2001 from Barclays Private Equity followed by two major acquisition deals. The first was of Delft Electronic Products B.V of the Netherlands in February 2005 and the second was of Burle Industries Inc. in the USA in July 2005.

The Photonis group has become the preferred supplier for the world’s largest equipment makers in these fields, thereby bolstering its lead position by offering its clients customised technological solutions.

Context

In March 1998, Barclays Private Equity and Parconexi bought out Photonis, which was then owned by Philips Components. In mid-2001, the AXA Private Equity team approached the outside shareholders, who were then seeking to cash in on their investment, to offer them a quick and confidential deal. At the same time, AXA Private Equity persuaded the company’s top executives that it could provide effective help with their plans for both organic growth and acquisitions.

Strategy

Photonis addressed such strategic issues as strengthening its partnership ties with its big accounts, expanding its international marketing network and introducing new products. It also worked to optimise its industrial processes, reduce its dollar exposure, integrate its various activities following the acquisitions and create synergies.

AXA Private Equity participates in creating value through its support of the management team, its expertise in its build-up programme and its participation in changing the company’s management structures.