Phoenix nets 4.3x return on sale of Rayner Surgical to CVC

Phoenix sold the company four years after investing in 2017. The deal is its second exit from the GP's 2016 fund and generated a return of 4.3x money for the GP, following the sale of Travel Chapter for 3.6x money, according to a source familiar with the situation.

Sources told Mergermarket earlier this month that the sell-side adviser was pitching Rayner based on EBITDA of £17-19m. 

CVC will deploy equity from CVC Capital Partners VIII, which held a final close on £21.3bn in July last year. The vehicle typically invests in companies with enterprise values of €1-5bn, and provides equity tickets in the range of €200m-1bn.

Phoenix said it helped strengthen the company's business development and operational capabilities, establish a direct presence in key international markets, source and complete strategic acquisitions, and increase investment in new product innovation.

The GP added that, since its investment, the company's EBITDA has nearly trebled, employee numbers increased by more than 75% and the company expanded its international footprint.

The transaction is subject to regulatory approval and is expected to close in Q3 2021. 

Shortly following the Rayner announcement, Phoenix confirmed the previously reported sale of Sygnature Discovery, a UK-based drug discovery firm, to Five Arrows Principal Investments. This third exit from the 2016 fund generated a return of more than 5x on the sale, according to a source familiar with the situation.

Company
Founded in 1949 and based in Worthing, Rayner is a developer and manufacturer of intraocular lenses and related products to support cataract and refractive surgery. The company exports its products to more than 80 countries.

People
Rayner Surgical Group – Tim Clover (CEO).
Phoenix Equity Partners – Kevin Keck (partner).
CVC Capital Partners – Cathrin Petty (managing partner).

Advisers
Vendor – Rothschild (M&A); Latham & Watkins (legal); PwC (financial due diligence); LEK Consulting (commercial due diligence); BDO (tax).
Equity - Freshfields Bruckhaus Deringer (legal); Mansfield Advisors (commercial due diligence); PwC (financial due diligence); William Blair International (M&A).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• UK / Ireland
• Industrials
• Exits
• Phoenix Equity Partners
• CVC Capital Partners
• Secondary buyout