Eurazeo’s Europcar aiming for €2bn market cap in upcoming listing

Pricing will be determined on 25 June 2015, although an €11.50-15 initial range has been set for the time being.

Europcar expects to raise €854.5m in proceeds, split between €475m in newly created shares and €379.9m in 33,000,000 existing ordinary shares to be sold by owners Eurazeo and ECIP Europcar Sarl.

The GP will divest 28,260,456 shares in Europcar and thus retain a 42% stake in the business, down from the 86.79% it held before the flotation. Meanwhile, fellow shareholder ECIP Europcarl Sarl will roll over 6% of the 12.98% stake it previously held.

The public offering features a lock-up period of 180 days for the sale of further shares.

The car rental business intends to use the capital to meet the anticipated repayment of €324m outstanding subordinated notes, expected to mature by 2017. Europcar intends to reduce its corporate to 1.5x EBITDA, down from the 2.7x multiple recorded at the end of 2014.

In addition, the car rental business foresees a 3-5% jump in its consolidated revenues and an EBITDA uptick from the current €212.8m to approximately €245m.

The announcement comes more than three months after unquote" learned of Europcar's intention to list in the second quarter of 2015.

Headquartered in Paris and founded in 1949, Europcar is a car rental business. With around 6,500 employees, the group is present in 145 countries. Europcar posted revenues of €1.9bn in 2013, with a €157m EBITDA. The latter figure jumped to €219m for the 2014 fiscal year.

The car rental service was acquired by Eurazeo from Volkswagen for €3.08bn in 2006. The purchase price was equivalent to 16.5x EBITDA at the time.

In 2012, the French business raised €324m on the high-yield market to refinance its debt. The refinancing saw shareholders, including Eurazeo, deploy an additional €110m to be later converted to equity.

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