Cinven picks dual-track exit advisers for Envirotainer

Auri Aittokallio , Carl-Johan Kullving and Gustav Hoejmark-Jensen
10 February 2022

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Cinven has picked advisers including Citi and JP Morgan to guide its dual-track exit process of Envirotainer, a Swedish temperature-controlled air cargo containers provider, two sources familiar with the situation said.

Carnegie has been appointed for the IPO track, one of the sources said.

Unquote sister publication Mergermarket reported last month that Cinven had invited bank pitches on exit routes in 2021 and was contemplating options for its portfolio company, including a full or minority stake sale, an IPO, and a fund transfer. Envirotainer recorded EBITDA of approximately SEK 1bn (cEUR 98m) in 2020/21.

The M&A track is being explored first, with information memorandums anticipated in March, one of the sources said, adding that the sell-side is hoping to conclude the process before summer.

In case the attempted sale of Envirotainer does not deliver a desired valuation, the sponsor is expected to explore a listing of the business, one of the sources said.

The sell-side has already been holding informal talks with potential private equity buyers, one of the sources said.

Envirotainer's minority shareholder, Novo Holdings, could be a potential bidder for Cinven's stake, a banker following the situation suggested.

A similar buyout took place in January, when Element Materials Technology's minority shareholder, Temasek, pre-empted the auction of the UK testing business by acquiring Bridgepoint's majority stake.

Envirotainer, established in 1985, was acquired by Cinven from AAC Capital Partners in July 2018 for an undisclosed sum.

Later that year, Cinven sold an approximately 25% stake in Envirotainer to Novo Holdings, through which the Novo Nordisk Foundation owns pharmaceutical company Novo Nordisk and biological services business Novozymes.

Envirotainer, headquartered in Stockholm, designs, manufactures and leases temperature-controlled containers used primarily for air-freighting biopharma products. It ships around two million doses of medicines per day, covering 2,000 pharma trade lanes in 100 countries and 300 airports, according to the company's website. It has 320 employees.

Carnegie, Cinven, Citi, JP Morgan and Novo Holding declined to comment. Envirotainer did not respond to a request for comment.