Eurazeo taps Rothschild for DORC exit

Rachel Lewis , Claude Risner and Josh O'Neill
11 August 2023

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Eurazeo has tapped Rothschild to oversee its planned exit of Dutch medical equipment manufacturer DORC, according to four sources familiar with the situation.

The process is expected to launch post-summer in an auction that will see the company marketed off EUR 50m EBITDA, said two of the sources. The process will launch sometime in September and the sellside is putting potential bidders in front of management even sooner, one of them added.

DORC had earlier been tipped as a 2H23 sale candidate but was not expected to come to market until 4Q. A potential sale is now coming sooner than expected, one of the sources noted.

The company has a score of 37 according to Mergermarket's Likely to Exit (LTE) predictive algorithm*, at the time of publication. The top contributor to DORC's score is the number of days it has been held by the sponsor.

Eurazeo acquired the asset in March 2019 from Montagu, at the time investing a EUR 300m equity ticket on an estimated EUR 575m valuation, as reported. The sponsor drew EUR 75m from the 2019 vintage Eurazeo Capital IV and the remainder from its balance sheet.

At the time, the company was pitched off around EUR 34m EBITDA and bidders offering 17x and below failed to make it through to the second round of the auction, as reported. Eurazeo was competing with CVC and Nordic Capital.

DORC pulled a further EUR 80m from Eurazeo's China Acceleration Fund in mid-2020.

Eurazeo declined to comment. Rothschild did not respond to requests for comment.

*Mergermarket's LTE predictive analytics assign a score to sponsor-backed companies to help track and predict when an exit could occur through M&A, an IPO, a direct listing or a deSPAC transaction.