Argand, Genui-backed Cherry to float in €778m IPO

Cherry is to list 24.3 million shares priced at €32 apiece, with the first day of trading expected on 29 June 2021.

The company was valued at around €200m when Argand acquired it in an SBO from Genui in May 2020, with the company posting adjusted EBITDA of around €28m, according to Unquote sister publication Debtwire. Genui retained a minority stake of 25% in the business and the deal completed in September 2020.

Cherry announced its intention to float earlier in June 2021, as reported.

Hauck & Aufhäuser is sole global coordinator and joint bookrunner, while ABN Amro (in cooperation with Oddo BHF) and MM Warburg are acting as joint bookrunners for the IPO.

As reported by Unquote, the gaming sector has seen significant growth during the pandemic. Cherry cited significant growth over the past year as one reason behind its decision to list.

In addition to its growth due to the pandemic, Cherry acquired Active Key under Argand's ownership in May 2021. The Germany-based company produces hygienic, washable keyboards and mice for use in the medical and industrial sectors.

Previous funding
Genui acquired Cherry via a carve-out in October 2016, backing the company's MBO from automotive components producer ZF Friedrichshafen. At the time, Cherry focused on IT security devices, switches and keyboards for use in offices.

The deal valued the company at around €50m. Genui invested via its debut fund, which held a final close in July 2016 on €407m. The fund deploys equity tickets of €15-75m. Debt was provided by SEB.

Cherry was placed up for sale in 2019, Unquote sister publication Mergermarket reported in April that year, with William Blair mandated to run the process.

Cherry was initially marketed based on EBITDA of €22m, with Duke Street acquiring exclusivity by December 2019, but this exclusivity expired in May 2020, Mergermarket reported, allowing Argand to acquire a majority stake in the business. Hayfin Capital Management provided debt to back the buyout.

Company
Founded in 1953, Cherry produces computer gaming hardware, specialising in high-precision keyboard switch technology. The company also produces input devices such as mice and headsets, as well as security, point-of-sale and e-health devices.

The business is headquartered in Auerbach in der Oberpfalz and employs 400 staff, with sites in Germany, France, the UK, China and the US.

Cherry posted 2020 revenues of €130.2m and adjusted EBITDA of €37.1m. In Q1 2021, the company generated revenues of €37.7m, an increase of 35.6% compared with Q1 2020. The company reported an adjusted EBITDA margin of 29% in Q1 2021.

People
Cherry – Rolf Unterberger (CEO); Bernd Wagner (CFO).
Argand Partners – Tariq Osman (partner, co-founder).
Genui – Sumeet Gulati (partner).

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

• Topics
• Exits
• DACH
• Technology
• Germany
• IPO