Asmodee already attracting PE interest ahead of November launch

Blackstone and Hellman & Friedman are also expected to join the fray, one of the sources said. Family offices such as Denmark’s Kirkbi could potentially bid for the PAI Partners-backed asset, the same source added. Kirkbi, which owns a majority stake in Lego, teamed up with CVC on a bid when Asmodee was last sold in 2018.

Bidders who were on the sale process of Italian gaming stickers firm Panini are also looking at Asmodee, another source added.

Information memoranda is expected to be distributed in November, three sources said. Goldman Sachs and Natixis are advising PAI on the sale.

Asmodee will likely be marketed off just under EUR 200m of EBITDA. EBITDA including IFRS 16 was EUR 164m for the year ending March 2021. Revenue was more than EUR 550m for FY19, according to press reports.

The business, acquired by PAI from Eurazeo in 2018 for EUR 1.2bn, could fetch a valuation of 13x-15x EBITDA, two sources said. While the company has benefitted from stay-at-home pastimes including board games during the pandemic, potential investors are trying to figure out what is next for the business.

“How much can they can grow the business via M&A […] and how much growth potential is in its digital offering, mainly taking board games’ IP online? This part of the business is still small but profitable,” one of the sources said. Growth is expected to come from digitalisation of board games in the medium term, two of the sources agreed.

In the last three years, PAI has bought companies to expand the gaming developer’s international and domestic reach. These include French board-game platform Board Game Arena, UK-based Libellud, Canada's Lion Rampant Imports and GoKids, a Taiwan-based board game publisher and distributor, according to Mergermarket data.

One point of concern for bidders is that the LBO market has little experience with large board games producers and there are not many comparables, one of the sources said. Listed comparables are likely to include US-based toymakers with board game divisions such as Mattel and Hasbro.

Founded in 1995, Asmodee has operations located in Europe, North America and China. The business accommodates a diverse product base through two divisions - proprietary publishing, which holds a wealth of IP; and its distribution arm, where it works off licences with other creators and includes names like Star Wars and Pokémon.

Its best known titles, either published or distributed on behalf of key publishing partners include Catan, Ticket to Ride, Splendor, Dobble/Spot it!, Star Wars: X-Wing, 7 Wonders, Dixit, Timeline, Unlock! and The Werewolves of Miller’s Hollow. In some European countries, Asmodee also distributes trading card games such as Pokemon, Magic, and Yu-Gi-Oh!.

The company employs 750 people, according to its website.

PAI, Natixis, Hellman & Friedman, KKR, CVC, and Kirkbi declined to comment. Goldman Sachs, Asmodee, Silver Lake, Advent and Blackstone and did not reply to requests for comment.

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• Topics
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