Synova's Clyde Munro exit parked in waiting room

The sponsor had sent information memorandum (IMs) via sellside advisor Investec in late November, according to one of the sources, but an exit failed to materialize.

The process, which is on ice until market conditions improve, was hampered by a challenging financing environment, coupled with macroeconomic headwinds, such as rising inflation and interest rates, one of the sources said.

Moreover, Clyde Munro has completed numerous bolt-ons recently and the pause will allow for it to see post-acquisition trading play out, said the same source.

One prospective direct lender structured its grid off around GBP 5m, according to one of the sources, while the company had been tipped to be marketed off GBP 10m EBITDA when accounting for a full year of acquisitions, as reported by Unquote sister publication Mergermarket.

The pause comes at a time when all bidders in wider markets are being much more cautious on EBITDA adjustments, as analysed by Mergermarket.

Elsewhere, bidders for Gilde Healthcare's German radiology platform RAD-x were put off by particularly aggressive adjustments that marketed the asset of up to EUR 30m for a pipeline of bolt-ons that were unattainable, as reported.

Buyers circling Clyde Munro had expected that bolt-ons are becoming more expensive and that the debt on offer to support them would be limited, said one of the sources, adding that in fact, bolt-on prices are falling.

Clyde Munro raised a GBP 25m debt package from Investec in February 2022 to support a further roll-up of Scottish dental chains.

Synova acquired Clyde Munro in November 2015 via the 2013-vintage Synova II.

Synova declined to comment. Investec did not respond to requests for comment.

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• Topics
• Exits
• UK / Ireland
• Healthcare
• Mergermarket
• United Kingdom
• Synova Capital