3i sells Havea to BC-led consortium

The transaction is valued at EUR 1bn-1.1bn, according to a source familiar with the situation. Unquote sister publication Mergermarket reported that the business was marketed based on around EUR 67m EBITDA.

The deal sees BC Partners acquire the group alongside co-investors PSP Investments and National Pensions Services Investment Management (NPSIM).

The sale process was launched earlier this year, attracting Cinven, alongside a consortium of Apax France and Wendel, according to Mergermarket.

Completion of the deal is expected by Q4 2022, subject to regulatory and employee approvals, according to the statement.

3i is expected to net proceeds of around GBP 450m, according to a second source familiar. The proceeds are at a 50% uplift from Havea’s 31 March 2022 valuation, which stood at GBP 304m, according to a statement from 3i.

Under the incoming new owners, Havea is expected to continue its strategy to expand into new and existing markets, including Germany and Italy, the source said, noting that the market for natural organic health products remains fragmented in the two markets.

BC Partners will look across its specialisms in natural food supplements and baby premium healthcare products, although a focus will be on food supplements given that growth prospects are the largest there, the source said.

Over the next three to four years, BC Partners could spend as much as EUR 100m-200m on small bolt-ons and transformational acquisitions, backed partly by a EUR 100m acquisition facility provided by Ares, the source added.

The growth strategy is expected to help double the size of the business over the course of the new ownership, the source said.

Havea has been on an acquisitive journey since 3i’s investment in 2017. During this period, Havea generated double-digit organic growth and completed 5 acquisitions in 5 years, building up its presence in Italy, which is the largest European food supplements market, and Belgium. It has also refocused their product portfolio on 5 brands and implemented a multichannel strategy which involved launching D2C subscription services, according to a statement.

BC Partners and 3i declined to comment.

Company
Havea is a leading European natural healthcare player featuring a unique consumer/patient-centric approach centred on five strategic brands: Aragan, Biolane, Densmore, Dermovitamina and Vitavea. The group and its brands help consumers prevent and treat common health issues with premium natural healthcare products. The company is headquartered in Boufféré in France and generated EUR 212m in sales in 2021.

People
Havea - Nicolas Brodetsky (CEO).
3i - Rémi Carnimolla (partner, managing director)
BC Partners - Mark Hersee (partner); Fouad Jaïdi (managing director)
PSP Investments - David Morin (managing director and head of Europe, Private Equity)

Advisors
Vendor – UBS, Natixis Partners (M&A).

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