IK, Asian strategics in final sale round for Schwind

The sponsor's bid for the German developer of eye-laser technologies has been selected to advance alongside two unidentified Asian strategic players, two sources said. Another financial sponsor is also still in the running to acquire the firm, two sources said.

Sell-side adviser Macquarie is marketing Schwind based on EBITDA of around EUR 18m-20m, as previously reported by Mergermarket.

The sell side is aiming to deliver on high price expectations for the asset, with Schwind on track to fetch an enterprise value of more than EUR 400m and potentially a 25x EBITDA multiple, the sources said.

Slovenian medical laser manufacturer Fotona is being used by the vendor as a reference point, according to a fifth source following the situation. European-Asian private equity firm AGIC Capital sold Fotona to Vitruvian Partners earlier this year for a reported EUR 700m. Fotona posts around EUR 25m in EBITDA, according to Mergermarket.

Macquarie and Ardian were tipped to run a tight process for the company, with interest expected to run high among mid-market sponsors in the healthcare space and strategic buyers based in Asia due to Schwind's existing exposure in the region, sources told Mergermarket in October.

While Schwind would fit into IK's wider investment portfolio, strategic buyers might be more likely to meet the sell side's price expectations, given that Schwind's latest generation of laser technology only recently launched and has yet to achieve full market acceptance, one of the sources said.

Launched in 2020, the Schwind ATOS Femtosecond Laser provides eye-tracking, pupil recognition and cyclotorsion compensation, according to its website.

In its latest financial filings, Schwind cited the introduction of a new generation of laser technologies as an important growth driver for the firm.

Schwind reported EUR 9.8m in EBITDA and EUR 44.8m in revenues in the financial year to 30 June 2020, down from EUR 11m in EBITDA and EUR 48.4m in revenue the prior year due to the Covid-19 pandemic, the same filings state. It forecast an increase in EBITDA and total revenues for the following year.

Ardian acquired a majority stake in Schwind in 2016 from its founders, the Schwind family, for an undisclosed sum, with the then-owners retaining a stake in the firm, according to Mergermarket data. The company is led by CEO Rolf Schwind.

Founded in 1958 and headquartered in Kleinostheim, Bavaria, Schwind has around 140 employees. Its products are used by eye surgeons in ophthalmology clinics and hospitals, laser centres and university hospitals in more than 100 countries, according to its website.

Macquarie, Schwind and IK declined to comment. Ardian did not respond to requests for comment.

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• Topics
• Exits
• Buyouts
• DACH
• Healthcare
• Mergermarket
• IK Investment Partners
• Ardian (formerly Axa PE)
• Macquarie Group