Compass Partners sells Rodenstock to Apax Partners

Apax intends to support the management team of Rodenstock in the company's continuing growth, which will include investment in innovation and digitalisation, the GP said in a statement.

Apax is deploying equity via Apax X, which held a final close in January 2021 on $11bn.

Compass Partners mandated Jefferies to sell the business in 2020, more than four years into its holding period. However, the sale was paused in May 2020 in the wake of uncertain market conditions brought about by the coronavirus pandemic, Mergermarket reported. Sources told Mergermarket that the pause was not linked to any distress in the company. At the time, Rodenstock was marketed based on €110m EBITDA and was expected to generate a valuation of around 10x EBITDA, based on valuations of its listed market peers.

The exit values Rodenstock at around €1.5bn, according to Bloomberg. This would equate to a multiple of more than 14x its 2019 EBITDA, or more than 13x the €110m EBITDA on which the sale was reportedly based.

The eyewear sector has proved popular with GPs in Germany in recent years in a range of market segments. The majority of Rodenstock's direct competitors, including eyewear producer Fielmann, are currently listed. The focus for PE players in the segment has generally been buy-and-build strategies for optician chains providing services directly to consumers.

Telemos Capital acquired Berlin-based Sanoptis in 2019 and has since made a series of add-ons for the company. Paragon acquired optician chain ProOptik via its third fund in July 2019, while Argos Wityu acquired AktivOptik via Euroknights VII in August 2018. In June 2020, Beyond Capital Partners announced its acquisition of a 90% stake in holding company Ounda, which the GP used to acquire 20 opticians to begin its buy-and-build strategy in the small-cap segment.

Venture capital investments in the sector have focused on technology-backed players in the space, such as Grazia Equity's online optician chain Mister Spex.

Previous funding
Permira acquired a minority stake in Rodenstock in 2003, investing alongside the company's management. Rodenstock's family-owned holding company continued to hold a 51% stake in the business. The deal valued the company at around €200m, according to Unquote Data.

Bridgepoint acquired Rodenstock from Permira in January 2007 for around €500m.

Compass Partners acquired a majority stake in Rodenstock from Bridgepoint in December 2015, alongside three further Bridgepoint portfolio companies. The combined companies had an enterprise value of €2bn. The deal saw an equity commitment of €360m from Compass, as well as a €380m senior debt package and €55m rolling credit facility provided by Credit Suisse and RBS. Rodenstock generated revenues of €417m and €80m in EBITDA in 2015, according to Compass's website.

Compass acquired a further portfolio of three Bridgepoint assets in a €100m deal backed by Glendower Capital in 2018. The deal saw Compass acquire the remaining 20% stake in Rodenstock.
Rodenstock completed a refinancing in June 2019 that comprised a €395m term loan and a €20m revolving credit facility issued by JP Morgan as sole lead arranger.

Compass backed a €75m capital increase for the business in June 2020. Proceeds from the fresh funding were intended to be used to support the company's liquidity needs and capital base, as well as to support its growth.

Company
Founded in 1877, Rodenstock produces ophthalmic prescription lenses, including contact lenses, as well as glasses frames. The company is based in Munich and employs 4,900 staff. In 2019, the company reported turnover of €450m and EBITDA of €103m, along with an EBITDA margin of 23%, marking a 2% increase on the 2018 margin, the company said in a statement issued in June 2020. Rodenstock reported 2018 revenues of €425m and EBITDA of €91m, according to a statement from the company.

People
Rodenstock – Anders Hedegaard (CEO).
Compass Partners – Tim Wright (partner).
Apax Partners – Steven Dyson (partner, co-head of healthcare); Arthur Brothag (partner).

Advisers
Vendor – Jefferies (corporate finance); Dickson Minto (legal); Sidley Austin (legal); PwC (financial due diligence, tax).
Management – Poellath (legal).
Equity – Linklaters (legal); PwC (financial due diligence, tax).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• Exits
• DACH
• Consumer
• Healthcare
• Germany
• Apax Partners
• Permira
• Bridgepoint
• Secondary buyout