PE backers mull Ceva Santé Animale sale

Greg Gille
07 October 2013

Tweet
Facebook
LinkedIn
Google plus
Send to

French veterinary laboratory Ceva Santé Animale, backed by Nixen, Euromezzanine and Sagard, has mandated Lazard to explore the possibility of a sale in the first half of 2014.

A sale could value the business at close to €1.5bn, with valuations in the 12-13x EBITDA range not uncommon in the sector, a source close to the situation told unquote". Ceva is expected to post an EBITDA in excess of €120m in 2013 – against €12m in 1999.

Ceva's management and shareholders are aiming to complete the sale before June next year, the source added. Management is understood to be favouring another private-equity backed transaction.

Formerly a division of laboratory Sanofi, Ceva has been no stranger to private equity in the past decade. PAI partners first backed the company's spinout in 1999. The GP acquired a 90% stake in the newco, while the management team, led by Philippe du Mesnil, retained the balance.

In September 2003, IK Investment Partners backed the company's secondary buyout in a transaction that valued the business at around €200m. Management took around 40% of the equity on that occasion. Natexis Banques Populaires, Euromezzanine and ICG supplied the debt package. PAI generated an IRR of 35% from the sale. In May 2006, IK ran a €208m recapitalisation for the business.

The management of Ceva acquired a majority stake in a tertiary owner buyout backed by Euromezzanine and Nixen in 2007. The financial sponsors invested both equity and junior debt instruments. The transaction provided an exit for IK, which generated a money multiple of around 3.5x and an IRR of 40%.

In 2010, Sagard invested €100m in the business in exchange for a 25% stake. Ceva's management is still believed to be holding onto the majority of the company's shares.

Based in Libourne, Ceva is a veterinary health company developing solutions for animal diseases. The business is present in 42 countries, has 13 R&D centres and 21 production sites, and employs more than 3,000 staff worldwide. Ceva generates a turnover in the region of €600m.