EQT sells Apleona to PAI for €1.6bn

The transaction is expected to close in Q2 2021.

The sale generated a return of 2.5x money on invested capital for EQT, according to a source close to the situation.

The purchase price implies an entry multiple of around 10.7x the company's 2019 EBITDA of €115m.

The deal is PAI's first in the DACH region since the GP announced its appointment of Ralph Heuwing as partner and head of DACH in September 2020, as reported.

PAI is deploying equity via PAI Europe VII, which held a final close in March 2018 on €5bn. The vehicle deploys equity tickets of €150-400m, targeting businesses with enterprise values of €300m-1.5bn.

PAI is currently fundraising for its first Middle-Market Buyout Fund, targeting €700m.

EQT acquired Apleona in 2016 for €1.4bn in a carve-out from Bilfinger; the company was formerly the corporate's real estate services division.

Bilfinger is to receive a share of EQT's proceeds from the exit amounting to around €450-470m, based on an earn-out provision agreed at the time of the original divestment.

EQT invested in Apleona via EQT VII, which held a final close in August 2015 on €6.75m. The vehicle was fully deployed as of September 2019, according to Unquote Data.

Debt for the 2016 buyout was provided by a consortium of Deutsche Bank, UniCredit, Crédit Agricole, Natixis, RBC Capital Markets, Royal Bank of Scotland, Bank of America Merrill Lynch and Goldman Sachs, according to Unquote sister publication Debtwire. The consortium provided financing of €1.25bn, including a term loan of €700m, a revolving credit facility of €100m and other loans of €45m.

During the investment period, EQT established Apleona as an independent business, focusing on investments in Apleona's technology platform, as well as divestments of non-core business subsidiaries. In November 2018, Apleona sold UK-headquartered subsidiary GVA to Canadian real estate service Avision Young.

In May 2019, UniCredit and Deutsche Bank provided a refinancing loan of €35m, according to Debtwire.

German publication Boersen-Zeitung reported in September 2020 that EQT was exploring exit options for the business, with a sale or an IPO under consideration.

Company
Apleona provides real estate and facilities management services for businesses. Its clients include Siemens Real Estate, ABB, AB InBev and DB Fernverkehr, as well as a number of real estate developments in cities including Frankfurt, Cologne and Düsseldorf, according to its website.

Headquartered in Neu-Isenburg and established as an independent company in 2016, Apleona employs 20,000 people and reports revenues of around €2bn. The company reported EBITDA of €150.1m at the time of its acquisition by EQT in 2016 versus €115m in 2019.

People
EQT – Matthias Wittkowski (partner).
PAI Partners – Ralph Heuwing (partner); Philipp Meyer (managing director).
Apleona – Jochen Keysberg (CEO).

Advisers
Vendor – Deutsche Bank (corporate finance); Milbank (legal); Deloitte (financial due diligence); Boston Consulting Group (commercial due diligence).

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