Eurazeo kicks off sale processes for Peters Surgical, In'Tech

In'Tech, a French manufacturer of orthopaedic surgical tools backed by Eurazeo PME and Andera Partners, will welcome first-round bids in the week starting 28 June, according to three sources familiar with the situation.

Private equity firms Ardian, Cobepa and Astorg, as well as trade peer Marle – co-owned by Dentressangle and IK – are potential bidders for the company, according to two of the sources. The majority of these bidders were also previously mentioned in a Capital Finance report.

In addition, Montagu and Partners Group are circling the asset, according to a fourth source familiar with the situation, as well as EQT, BC Partners and Apax, a fifth source familiar added.

Vendors are seeking a minimum enterprise value of €500m, according to a Capital Finance report.

The asset is being marketed based on a 2021 predicted EBITDA in the €30m region, according to three of the sources and a sixth source familiar. The business generated €112m in revenues in 2020 and is expected to generate a €121m turnover this year, a seventh source familiar said.

Natixis Partners is advising vendors Eurazeo and Andera Partners on the sale, as per the Capital Finance report.

Eurazeo preempted an auction for In'Tech in 2017 from TCR Capital. The business had annual sales of €55m and generated between €11m and €13m of EBITDA at the time. The transaction valued In'Tech Medical at around 12x EBITDA.

Eurazeo, Natixis Partners, Astorg, Partners Group, Montagu, IK and EQT declined to comment. Andera, In'Tech, Dentressangle, Marle, Ardian, Cobepa and Apax did not respond to a request for comment.

Eurazeo has also launched the sale of Peters Surgical, a French medical equipment company, with information memorandums circulated earlier this week, three sources familiar with the situation said.

The business is expected to generate adjusted EBITDA of €13-14m in 2021, according to one of the sources. It is being marketed based on €10-15m in EBITDA, according to all three sources and two further sources.

"[Peters Surgical is] a very stable business, but sales in 2020 were not as good as expected given that some complex surgery was postponed due to the pandemic," a sixth source familiar said.

A seventh source said: "Internationalisation proved difficult in the past; this remains an essentially French business and it's [hard] for vendors to argue this can change."

The sale will be geared towards both private equity and trade bidders, according to an eighth source. DC Advisory is sell-side adviser.

Eurazeo acquired nearly 90% of Peters in 2013 from previous owners UI Gestion, BPI France and NCI Gestion in a deal that valued the business at €45m.

DC Advisory and Eurazeo declined to comment. Peters did not reply to a request for comment.

Eurazeo plans to accelerate its asset divestment programme in 2021 and 2022 given the maturity of its PE portfolio, as reported by Unquote.

Eurazeo still has several assets in its portfolio that were acquired more than five years ago, according to Unquote Data. These include Redspher (originally Flash Europe), a Luxembourg-based express transport service bought in 2015; Orolia, a GPS technology developer taken private in 2016; and Groupe Rosa, an omnichannel group of home and fashion brands, including Linvosges, Françoise Saget and Envie de Fraise, acquired in 2016.

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