BC Partners, Cinven, Apax and Wendel circle Havea sale

Rachel Lewis , Francesca Veronesi , Myriam Mariotte , Maryna Irkliyenko and Barbara Pianese
19 May 2022

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A host of sponsors, strategic players and a family office are circling French natural consumer healthcare manufacturer Havea ahead of non-binding bids next month, according to six sources familiar with the situation.

BC Partners and Cinven are circling the company, said five of the sources, alongside a consortium of Apax France and Wendel, said four of the sources. Two trade players plus two North American financial investors, made up of one sponsor and one family office, are also expected to table bids, said one of the sources.

First-round bids are due on 8 June, said one of the sources, with management presentations expected this week, said another source. UBS and Natixis Partners are running the sellside process for sponsor 3i, as reported.

The business is expected to fetch a valuation of at least EUR 1bn on the company, said one of the sources, and is being marketed off a June 2022 EBITDA of around EUR 67m, said two of the sources.

The price tag would sell Havea at upwards of 15x EBITDA, similar to the multiple expected for peer Arkopharma, as reported, which is also in the midst of a sale process.

Valuation expectations were around 20x, one of the sources and further source familiar said prior to IMs, which they described as very high. The company's EBITDA had been assessed as around EUR 60m, as reported.

Havea operates in the consumer healthcare segment, however, some of its brands including Densmore, Aragan and Dermovitamina are considered products that are non-cosmetic and prescribed by pharmacists, said one of the sources.

The company products also don't compete with private labels as all products in French pharmacies are branded, said the same source.

The company's best brand generates EUR 20m EBITDA and its products aren't essential, said a different source.

The sale is happening simultaneously with peer Arkopharma, which also sells food supplements, as reported. Due to the timing, it is unlikely that a sponsor will buy the two and merge them, said one of the sources, adding that the combination also doesn't make much sense to people who have looked at it.

The company manufactures, designs and distributes food supplements and personal care products for babies and women through a factory based in France, according to its website.

Havea, Cinven, BC Partners, Apax France, Wendel, 3i, and Natixis Partners declined to comment. UBS did not respond to a request for comment.