The Deals Pipeline

Unquote team
06 April 2020

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A fortnightly highlight of deal processes underway and involving private equity, either on the buy- or sell-side, across Europe.

Walmart has delayed the divestment of a majority interest in Asda, Reuters reported on 3 April. Walmart had been in discussion with potential suitors in February, but decided to postpone the sale process so that Asda could concentrate on the virus emergency. The deal was thought to be worth £7bn.

DACH

Air Liquide has pushed the final bid deadline for the sale of Schuelke back to 23 April, Mergermarket reported on 31 March. Ardian, EQT and PAI Partners have advanced into the final round of the German hygienic products manufacturer's auction. Schuelke's buy-siders are now working on the deal based on EBITDA in the range of €75m. The sell-side originally marketed the company based on an EBITDA in the range of €50-70m. The Covid-19 pandemic and subsequent panic buying has reportedly led French industrial gas supplier Air Liquide to solicit higher offers for Schuelke, which sells hand sanitiser.

ProLeiT's owners are forging ahead with the late-stage sale of the German automation software company despite the coronavirus crisis. Mergermarket reported on 2 April. The deal is expected to be completed within the next three weeks. The small-cap teams at private equity firms including IK Investment Partners and Carlyle, via Carlyle Europe Technology Partners, had advanced into the second round of the auction.

Southern Europe

Italian holding Gruppo Biman is in exclusive talks to acquire motorcycling accessories company Tucano Urbano, Mergermarket reported on 3 April.The management has been working on the dossier over the past few months and discussions have reached an advanced stage. Signing is expected once the Covid-19 emergency is more under control, potentially between May and June.

Italian sushi restaurant chain Sushiko is working with Oaklins to find a majority investor, Mergermarket reported on 30 March. The auction is live and preliminary offers were expected recently. Teasers were sent to private equity firms only. In case of a prolonged lockdown, the process could be put on hold, although it will return to speed again once normality returns and restaurants can reopen.

Benelux

Summit Partners has delayed its sale of Dutch testing-services provider Normec Group, Mergermarket reported on 3 April. Last December, Summit was prepping Normec for an exit with Jefferies advising. Summit was working on the deal based on Normec having EBITDA of €20m-plus.

PAI Partners has put the sale of Dutch holiday park operator Roompot Vakanties on hold, Mergermarket reported on 27 March. Potential buyers were expecting an IM this month; however, the sale process has been affected by the coronavirus pandemic. The company was expected to fetch a valuation close to €1bn. Roompot generated €72m in EBITDA in 2018.

Nordic

EQT has put the brakes on the sale of IFS, an enterprise software company and one of its portfolio companies, Bloomberg reported on 1 April. EQT anticipates that prospective buyers who submitted initial bids may now negotiate for a discount citing the Covid-19 crisis. IFS, valued at at least €3bn, is likely to remain with EQT until market sentiment and the economy improves.

CEE

Hungarian road transport firm Waberer's International's owner Mid Europa Partners has mandated Rothschild to advise on a potential sale of all or part of the group, Mergermarket reported on 26 March. The vendor is yet to come up with a concrete timeline for launching the process. Mid Europa will consider a variety of options, including a full or partial sale of any of Waberer's business units to financial or strategic buyers.