Eurazeo’s strategic partnership with Rhône

Skadden advised Eurazeo on the deal

Eurazeo, a leading global listed investment company based in Paris and New York, and Rhône, a leading international private equity firm based in New York and London, today announce a strategic partnership. Under the terms of the agreement, Eurazeo will acquire a 30% interest in Rhône in exchange for $100 million cash (€84 million) and 2 million newly issued Eurazeo shares.

Eurazeo is a Euronext-listed investment company, with total assets under management of €7 billion. Rhône is a global alternative investment management firm with over €5 billion in assets under management across both its private equity business and its real estate joint venture with WeWork, the global leader in the collaborative workspace industry.

The partnership is predicated on both firms’ like-minded investment philosophy, common and complementary transatlantic heritage, and historical cultural alignment. This is evidenced by the global geographical presence of each firm, anchored by their common European and American heritage and long-standing network of relationships.

The complementary skills and character of each firm will serve to enhance the benefits of the partnership for both firms and their stakeholders, including broadening their scale and scope of investment capabilities and reinforcing and cross-pollinating respective networks. One Rhône representative will serve as an observeron the Eurazeo Supervisory Board while three Eurazeo representatives will serve on Rhône’s Board of Managers.

However, each firm will continue to operate independently and will maintain full discretion over their investment decisions.

The transaction will be accretive to Eurazeo. It is expected to close in the first half of 2018 and is subject to regulatory approvals and other customary closing conditions.

The Skadden team includes in New York: Financial Institutions M&A partner Michael Dorum (Picture); Tax partner Edward Gonzalez; Financial Institutions M&A associates Christopher Gandia, Nicholas Olson and Harshini Kanduru; and in Paris: M&A partner Olivier Diaz; Tax partner Thomas Perrot; and Corporate associates Charles De Reals and Corentin Charlès.

Involved fees earner: Michael Dorum – Skadden Arps Slate Meager & Flom; Christopher Gandia – Skadden Arps Slate Meager & Flom; Nicholas Olson – Skadden Arps Slate Meager & Flom; Harshini Kanduru – Skadden Arps Slate Meager & Flom; Olivier Diaz – Skadden Arps Slate Meager & Flom; Charles De Reals – Skadden Arps Slate Meager & Flom; Corentin Charlès – Skadden Arps Slate Meager & Flom; Edward Gonzalez – Skadden Arps Slate Meager & Flom; Thomas Perrot – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: Eurazeo;

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