Permira to take Ergomed private for GBP 703m

The take-private values Ergomed at a 2023 forecasted 21x EBITDA multiple, with the bid price of 1,350 pence per share representing a 32.7% premium to the company's six-month weighted average. 

The cash deal is being completed via Permira funds, anchored by the EUR 16.7bn 2022-vintage vehicle Permira VIII with Blackstone committing GBP 200m to finance the buyout, according to the filings. 

Permira said in an announcement that its rationale for the deal is based on the thesis that the company is better able to achieve its long-term growth potential as a private company. 

The reasoning echoes much of the language used by sponsors pursuing similar deals, as markets trend towards privatisation. 

Take-privates have taken hold cross sector in Europe, although the ongoing interest in healthcare has also seen EQT make a move on veterinary pharmaceuticals company Dechra and, in the small cap space, IK Partners for radiology company Medica.

Permira added that it will support Ergomed's next phase of growth by investing in commercial expansion, technological transformation and transformational M&A. 

Instead of accepting the cash offer, Ergomed's shareholders will also be given the option to roll some of their holdings into the new unlisted structure, without incurring management fees. The maximum number of units available under this scheme will be 20% of the topco. 

The company's board of directors has unanimously recommended that shareholders accept the offer. Founder Miroslav Reljanović, who owns 18%, has already undertaken to roll into the new deal. 

Amati Global Investors, which owns 2.2%, has also made a non-binding commitment to support the new scheme. 

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• Topics
• Buyouts
• UK / Ireland
• Healthcare
• Permira
• Take Private
• United Kingdom