HQ Equita sells Rovema to Haniel

Oscar Geen
26 October 2017

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HQ Equita has sold packaging machine manufacturer Rovema to industrial holding company Haniel for an undisclosed sum.

Rovema has grown by double-digit percentages in the past two years, resulting in expected EBITDA of €16m from €100m in sales.

HQ made the divestment from its €315m Equita Holding fund and its €150m Equita CoVest co-investment vehicle.

Private equity bidders Ardian, Capvis, Gilde, Quadriga and Rantum were forced to drop out before the second round due to strategic players bidding more than 11x EBITDA, according to a source speaking to unquote" sister publication Debtwire.

The Debtwire report added that banks had supported the sponsors with 4.5-4.75x all-senior debt packages.

HQ acquired Rovema in July 2015, at which time it reported a €70m turnover and employed 450 people. Under the GP's ownership these figures have increased to €100m and 600, respectively.

DBAG's sale of ProXES to Capvis was referred to as a comparable deal in the marketing of Rovema, according to reports by unquote" sister publications Mergermarket and Debtwire. The enterprise value was not disclosed but is thought to be more than €200m (8x EBITDA) with a debt package of €116m (4.6x EBITDA).

Previous funding
HQ Equita acquired a majority stake in Rovema in July 2015 alongside managing partner Thomas Becker, who retained a minority stake in the business.

Company
Founded in 1957, Rovema is a producer of packaging machinery and facilities. Based in Fernwald, Germany, it has 50 additional locations worldwide with a total of 600 employees. In 2017, the company projects EBITDA of €16m from €100m in sales.

People
HQ Equita – Christine Weiß (partner).
Haniel – Stephan Gemkow (CEO).
Rovema – Thomas Becker (CEO).

Advisers
Vendor – Alantra (M&A); Alvarez & Marsal (financial due diligence); Roland Berger (commercial due diligence); Watson Farley & Williams (legal); Flick Gocke Schaumburg (tax); ERM (ESG due diligence).

Acquirer – Berndt+Partner (commercial due diligence); Ensign Advisory (commercial due diligence); EY (financial due diligence); Glade Michel Wirtz (legal); HPC (ESG due diligence).