IK pauses Ampelmann auction amid macro concerns

Benaiah Moses , Tjeerd Wiersma , Virginia Garcia Martinez and Min Ho
15 June 2022

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IK Partners has hit the pause button on its exit process of Ampelmann, a Dutch offshore access systems developer, two sources familiar with the situation said.

The sale, which has been conducted by Piper Sandler, has been put on ice due to Ampelmann's exposure to Russia's embargoed oil & gas sector, one of the sources and a sector banker following the situation said. The company's reliance on the offshore oil & gas market had dampened buyside enthusiasm, both sources and an industry consultant said, with one of the sources adding that fossil fuels-linked companies are falling out of fashion.

Ampelmann was expected to be marketed off approximately EUR 25m in EBITDA, as reported.

First-round bids were submitted in March, one the sources said. Yet buyside interest was tepid, both sources said.

A valuation gap between the sell- and buy-sides was one of the sticking points, one of the sources said. While IK had priced Ampelmann at 8x EBITDA, implying a valuation of EUR 200m, high capex and reinvestment in rental equipment translated into EUR 12.5m – EUR 15m cash EBITDA, the same source said. The valuation therefore represented a 13.3x - 16x cash EBITDA valuation, he said.

CEO Jan Van der Tempel's centrality to Ampelmann's operations was another stumbling block, one of the sources said. Van der Tempel is expected to seek to withdraw from his position as CEO, and his potential departure has buyers concerned, he said. Van der Tempel first headed Ampelmann from 2008 to 2015, returning to the helm in 2017.

Yet, Ampelmann remains a potential target, one of the sources and the banker said. Russia's invasion of Ukraine has bolstered Ampelmann's prospects due to rising energy prices, he said. In addition, Ampelmann's plans to grow in offshore wind comprise a solid ESG story, he said.

A trade sale offers IK the most logical exit route, the same source said. Industry players are best-placed to address Ampelmann's personnel risk and single-product, single-market offering, he said.

IK declined to comment. Ampelmann did not respond to requests for comment.

Ampelmann's motion-compensated gangway systems facilitate the movement of offshore power personnel via motorised bridges between vessels. Ampelmann, founded in 2008 as a Delft University of Technology spinoff, was acquired by the IK VII fund in 2013 for an undisclosed sum.