Cinven reaps 2.4x on sale of Sebia to Montagu and Astorg

The deal is believed to be valued at €1-1.2bn. Goldman Sachs and Nomura are said to be providing the senior debt package for the deal, which French publication Capital Finance reported to be worth 7x EBITDA.

The transaction is expected to complete in December this year. While the deal will mark the second time Sebia has been under the dual ownership of both Montagu and Astorg, the latter has remained a shareholder in the company since its original investment in March 2001.

Montagu will reportedly pick up an 80% stake in the business. The two buying parties made a preemptive offer for the company, according to the FT.

The sale will reward Cinven with a 2.4x return on its original investment in Sebia. Under Cinven's ownership, the company has expanded its operations in the US and emerging markets, which has resulted in increases on total revenues of 21% and 23% respectively.

Previous investments
Cinven acquired Sebia in March 2010 from Montagu for €800m, using capital drawn from its fourth fund, which closed on €6.5bn in July 2006.

A €340m debt package was provided for Cinven's acquisition by BNP Paribas, Citigroup and Commerzbank, according to unquote" data, though the speed of the deal – Cinven made a pre-auction offer following four days of studying the books – meant the acquisition was originally an all-equity transaction.

Prior to the sale, Montagu held a 50.1% stake, while Astorg owned 16% and Intermediate Capital Group (ICG) held 13% with management owning 20%. Montagu made a 3x return on the exit, according to unquote" data.

Montagu had acquired its stake in Sebia in August 2006. The €400m buyout saw Astorg exit part of its existing stake – generating a money multiple in excess of 10x through the sale – while retaining 16%. CIC Finance underwrote a senior debt package for the deal while ICG provided a mezzanine facility.

Astorg acquired a 57.5% stake in Sebia in March 2001 via its Astorg II vehicle. The €70m MBO also saw CIC Capital Développement acquire a 10.9% stake and a senior debt package arranged by CIC Finance, as well as mezzanine financing from ICG.

The two lenders then carried out a €20m refinancing of the company in August 2004.

Company
Founded in 1967 and headquartered in Lisses, Sebia develops clinical protein electrophoresis equipment and reagents for use in in-vitro diagnostics (IVD) testing.

The company's equipment is designed to analyse proteins for the diagnosis of diseases such as blood cancer and diabetes.

Sebia employs 450 staff. It generated revenues of €146.9m in 2012, as well as revenues of €78.3m for the first half of 2013. At the time of Cinven's acquisition in 2010, Sebia employed 300 staff and generated €60m in turnover, according to unquote" data.

At the time of Montagu's first acquisition of the business in 2006, Sebia employed 300 staff and generated €80.3m in turnover.

People
Benoît Adelus is the CEO and chairman of Sebia. Sylvain Berger-Duquene is a director and head of France and Germany at Montagu, while Thierry Timsit is managing partner at Astorg. Nicolas Paulmier is a partner at Cinven; he sits on the company's board alongside partner Stuart McAlpine, principal Pierre Estrade and Astorg's Timsit.

Advisers
Equity – Goldman Sachs (M&A); Nomura (M&A); Weil Gotshal & Manges (Legal).
Vendor – Latham & Watkins (Legal).

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• Topics
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• France
• Astorg Partners
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• Montagu Private Equity