Eurazeo teams with Goldman Sachs to ink first US deal

The French investment firm is partnering with Goldman Sachs to acquire Dominion Web Solutions for $680m.

Paris-listed Eurazeo has teamed up with Goldman Sachs to sign its first deal in the US, according to a statement from the firm.

The French investment firm is partnering with West Street Capital Partners VII to acquire Dominion Web Solutions, a platform of branded marketplaces for the powersport, RV, commercial truck and equipment industries, for $680 million. Eurazeo and Goldman Sachs will each acquire a 50 percent stake in the business.

The transaction is expected to close in June.

Eurazeo opened its first US office last year in New York, with a team of five investors and two senior advisors. Virginie Morgon, deputy chief executive officer of Eurazeo, opened the office in September, becoming president and CEO of Eurazeo North America.

In the statement, Morgon said this acquisition “provides a strong foothold for our firm’s future”. “This investment is an example of the companies we aim to invest in and partner with – high quality enterprises with strong management teams and long-term transformational growth opportunities,” she said.

In March, Private Equity International reported that Eurazeo is looking to invest a third of its €6 billion in assets under management – comprising €5 billion of balance sheet capital and €1 billion of third-party capital – in the US over the next five years.

“We have a plan to deploy as much capital as possible in the US, of course with the right conditions – the right price and the right assets,” Philippe Audouin, chief financial officer and member of the executive board, told PEI at the time.

“I would not be shocked if within the next five years 30-40 percent of our assets were to be in the US, because it’s a huge market, it’s the largest market in the world.”

Goldman Sachs’ West Street Capital VII, its first buyout fund since the financial crisis, began marketing in August 2016. The firm held a first close on the fund in December on $4.5 billion. The vehicle has a target of $5 billion and a hard-cap of $8 billion.

West Street – also the firm’s address in southern Manhattan – is so named because the post-crisis regulation under the Volcker Rule prohibits banks from including their names in investment funds, as reported by PEI.