PE-backed Parques Reunidos and Telepizza eyeing May IPOs

The flotations will consist of both existing and new shares, which will be offered on the Madrid, Barcelona, Bilbao and Valencia stock exchanges. The IPOs represent the first flotations in the Spanish market for 2016.

Following the IPO, Parques Reunidos expects to raise net primary proceeds of approximately €525m. According to a statement, the offering's timing is subject to market conditions.

Arle currently owns a 65% stake in the business. In 2007, the GP acquired a majority stake for €930m and initiated strategic acquisitions to expand the business in Europe and the US. According to press reports, Parques Reunidos will be valued at 10x EBITDA, which would value the business at €2bn. The new shareholders will retain a 40% stake, while Arle will sell its stake for €300m.

The company generated €605.5m of revenues in 2015, 23% of which in Spain, with a €194.8m EBITDA and a 32.2% EBITDA margin. According to the company, the business has seen turnover and EBITDA compound annual growth rates of 5.8% and 8%, respectively, since 2013.

Founded in 1967 and headquartered in Madrid, Parques Reunidos is a regional leisure parks operator. The company manages 55 regional parks across 12 countries and employs 18,000 staff.

According to a statement, the net proceeds from the issuance of new shares will allow the company to repay its existing debt by arranging two new term loan facilities and a new multi-currency revolving facility. Moreover, the flotation will provide the company with fresh capital to bolster its organic growth and proceed with further strategic acquisitions.

Morgan Stanley International and Deutsche Bank are acting as joint global coordinators and joint bookrunners. Banco Santander, Barclays and BNP Paribas are acting as additional joint bookrunners. Banca IMI, BBVA, Banco Sabadell and Caixabank are acting as co-lead managers.

Telepizza is a Madrid-based pizza distributor with a presence in Europe and Latin America. Founded in 1987, the company generates a turnover of €492m and a €57.7m EBITDA. In 2006, Permira led a €850m take-private alongside the family owner. In October 2014, KKR entered the business by acquiring a 36% stake for €180m, as part of a wider refinancing deal. To date, Permira owns a 51% stake in the business alongside the family owners, KRR owns a 36% stake and minority shareholders, including 3i, own the remaining 13%.

The business will float 50% of its shares for around €600m as part of the IPO. Both GPs will still retain shares in the business, and the fresh capital will allow the company to cut its debt burden. According to press reports, Telepizza will be valued at €1.2bn.

Merry Linch and UBS are acting as joint global coordinators and bookrunners for the offering.

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• Topics
• Exits
• Southern Europe
• Spain
• Arle Capital Partners
• Permira
• KKR
• IPO