Ardian's d&b audiotechnik to hit market in 2023 as large-cap sponsors circle

Interest in d&b is expected to run high among financial sponsors this time around, the sources said, with two noting that large-cap private equity firms are already doing prep work for bids. KKR and Cinven are among the large cap investors expected to have a close look at d&b, one of the sources said.

A formal process is expected to kick off in early 2H23, the sources said, with one noting that d&b could even hit the market before summer. While dealmakers are expecting the process to be largely driven by private equity bidders, strategic buyers and PE-backed strategics could also get involved, one of the sources noted.

Ardian is expected to market the business off around EUR 70m EBITDA for FY23, three of the sources said. The company's orderbook points to an even higher year-end result that brings it closer to EUR 80m EBITDA, another source added.

d&b's EBITDA margins are estimated at around 25%, two of the sources said, with one noting that the company is forecast to generate around EUR 285m revenue in 2023.

Macquarie, who advised Ardian during the last sale attempt, will continue to guide the process, the sources said. Goldman Sachs has also been added as a co-advisor, three sources said, with one adding that Goldman has been appointed to engage with potential trade buyers.

Ardian's last attempt to exit d&b in early 2020 was called off over concerns that lockdowns and restrictions imposed in response to the coronavirus pandemic would impact the business, which specializes in supplying audio equipment for concerts and live events, as reported. At the time, d&b was being marketed off more than EUR 50m EBITDA.

But with the pandemic now more or less at an end, d&b has bounced back nicely and shown a strong performance in recent years, the sources said.

The comeback of live events and concerts in particular is likely responsible for driving a lot of its growth and activity in its space, one source said. "It feels like world tours are all over the place, and they are very relevant for all that," the same source added.

Though the two businesses are very distinct, the sale of LIFTKET Hoffmann, a German manufacturer of chain hoists that also serves the events space, could have some bearing on whether d&b can ultimately trade in the near term, one source said. That auction is in its closing stages, with Ardian among the final bidders for the asset, as reported by Mergermarket.

Ardian acquired d&b in 2016 from Cobepa and Odewald & Compagnie for an estimated deal value of EUR 300m, according to Mergermarket data.

Founded in 1981 and based in Backnang, Baden-Württemberg, d&b produces high-quality speakers, amplifiers and related components for events including festivals, concerts and musicals at locations such as concert halls, theatres and opera houses, according to its website. It has more than 500 employees.

Ardian, Macquarie, Goldman Sachs, Cinven, KKR and d&b audiotechnik declined to comment.

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• Topics
• Exits
• DACH
• Technology
• Mergermarket
• Ardian (formerly Axa PE)
• Macquarie Group
• Goldman Sachs
• KKR
• Cinven