Covid-19 set to increase Schülke sale valuations – report

Ecolab is also in the final round of bidders, according to reports.

Parent company Air Liquide began the sale process for Germany-based Schülke in November 2019, with JP Morgan running the sale process on behalf of Air Liquide.

According to a report from the Financial Times, Air Liquide's valuation expectations for bidders have increased since the coronavirus outbreak. The expected increase is said to come not only from the boost in sales of hand sanitiser produced by the company, but from an expectation that consumers and businesses may become more conscious of health and hygiene in the longer term as a consequence.

The company was initially expected to be valued at around €1bn and was marketed based on EBITDA of €50-70m, according to Unquote sister publication Mergermarket.

As reported by Unquote sister publication Debtwire, at the start of March, JP Morgan had issued a staple in the range of 6.25-6.5x, which is considered to be aggressive due to Schülke's significant pension liabilities.

Founded in 1889 and headquartered in Norderstedt, Germany, Schülke produces hygiene and cleaning products including disinfectants, antiseptics, preservatives and biocides. The company employs 1,200 staff and reports sales of €335m.

Ardian and PAI Partners declined to comment. EQT had not responded to a request for comment at the time of publication.

The Covid-19 outbreak is affecting both deal-doing and fundraising in the European market, as reported by Unquote.

Click here to view a list of private-equity-related auction processes that could be affected by Covid-19.

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• Topics
• Investments
• DACH
• people moves
• PAI Partners
• EQT
• Ardian (formerly Axa PE)
• Germany
• coronavirus