PAI, OTPP join forces in final leg of Veonet auction

The consortium may be well placed to clinch a deal for the Nordic Capital and Palamon-backed ophthalmology group in the final leg of the process, according to the first two sources. Final round bids were due last week in the JP Morgan- and Goldman Sachs-led auction, two sources added.

Bidders KKR – recently reported by Mergermarket to be interested in the asset – and Ardian were involved in earlier rounds but are now out of the running, two sources said.

The lack of competition could drag down the price of the asset, the sources pointed out. The price has now been pegged at EUR 2bn, according to a press report. However, it is still possible that another bidder enters the race, the report added.

Monthly increases in Veonet's run-rate EBITDA are complicating the negotiations, one source noted.

Bidders are basing their estimates on the company's EBITDA of EUR 135m-150m, as reported. Potential sponsors were also offered a staple from Goldman Sachs with 7x leverage that would not have sufficed to provide a unitranche unless an additional turn of PIK was to be added, given the debt quantum would likely top EUR 1bn, as reported.

Munich-based Veonet treats more than 1.2 million patients every year at clinics in Germany, Switzerland, the Netherlands and the UK. Key services include cataract operations, and intravitreal operative drug application (IVOM) for degenerative eye disorders, as well as non-invasive eye treatments and the diagnosis of eye disorders.

Nordic Capital, Goldman Sachs, PAI, OTPP and KKR declined to comment. JP Morgan and Ardian did not respond to a request for comment. Palamon could not be reached for comment.

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• Topics
• Buyouts
• DACH
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• Exits
• PAI Partners
• Ontario Teachers' Private Capital
• Nordic Capital
• Palamon Capital Partners