PE backers mull Ceva Santé Animale sale

A sale could value the business at close to €1.5bn, with valuations in the 12-13x EBITDA range not uncommon in the sector, a source close to the situation told unquote". Ceva is expected to post an EBITDA in excess of €120m in 2013 – against €12m in 1999.

Ceva's management and shareholders are aiming to complete the sale before June next year, the source added. Management is understood to be favouring another private-equity backed transaction.

Formerly a division of laboratory Sanofi, Ceva has been no stranger to private equity in the past decade. PAI partners first backed the company's spinout in 1999. The GP acquired a 90% stake in the newco, while the management team, led by Philippe du Mesnil, retained the balance.

In September 2003, IK Investment Partners backed the company's secondary buyout in a transaction that valued the business at around €200m. Management took around 40% of the equity on that occasion. Natexis Banques Populaires, Euromezzanine and ICG supplied the debt package. PAI generated an IRR of 35% from the sale. In May 2006, IK ran a €208m recapitalisation for the business.

The management of Ceva acquired a majority stake in a tertiary owner buyout backed by Euromezzanine and Nixen in 2007. The financial sponsors invested both equity and junior debt instruments. The transaction provided an exit for IK, which generated a money multiple of around 3.5x and an IRR of 40%.

In 2010, Sagard invested €100m in the business in exchange for a 25% stake. Ceva's management is still believed to be holding onto the majority of the company's shares.

Based in Libourne, Ceva is a veterinary health company developing solutions for animal diseases. The business is present in 42 countries, has 13 R&D centres and 21 production sites, and employs more than 3,000 staff worldwide. Ceva generates a turnover in the region of €600m.

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