The Deals Pipeline

Unquote team
20 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.

Sky News reported on 16 April that TM Lewin, a UK-based shirt retailer, is seeking dialogue with potential buyers, as PE firm Bain Capital wants to sell the company. Advisers to the business reportedly asked interested parties to submit offers last week.

Carlyle is keeping its plan alive to sell Eggplant Software after seeing the automation software developer catch the attention of US parties, Mergermarket reported on 9 April. US infrastructure software players have also indicated they could join the race. Francisco Partners, New Mountain Capital and GTCR are among those expected to bid for the company. The sell-side is yet to collect indicative offers as buy-siders wait for clarity on the new timeline of the process. Sell-side adviser Evercore was set to collect first-round bids around Easter. Eggplant could be sold for a price tag in the range of £300-400m.

ECI's exit from UK-based digital communications agency Investis Digital has been put on hold until the coronavirus-induced market uncertainty cools down, Mergermarket reported on 15 April.

Southern Europe

Armonia SGR expects to initiate the sale process of Gruppo Servizi Associati (GSA) in September, as it is still receiving advisory pitches, Mergermarket reported on 17 April. Management has collected up to 12 pitches to date. The sell-side mandate will be assigned at the end of May. The auction was expected to begin between the end of April and the beginning of May, but uncertainties fostered by the Covid-19 crisis have delayed the process by three to four months. GSA is still on track to generate €20m EBITDA in 2019 and its turnover stands in the €105-110m range, while sector multiples are pegged at 10x-11x EBITDA.

Dietopack, an Italian producer of food supplements, medical foods and devices, is exploring a sale, Mergermarket reported on 17 April. Teasers were sent out at the end of February, and, despite current market conditions surrounding the Covid-19 pandemic, the target is raising interest among potential suitors. One logical buyer for Dietopack would be private equity firm Trilantic Capital Partners, which could build synergies with its portfolio company Doppel Farmaceutici, according to two sources who spoke with Mergermarket.

Benelux

Mergermarket reported on 17 April that NPM Capital has prepped Dutch consultancy The IT Channel Company for an exit. NPM plans to move ahead with the sale despite the Covid-19 pandemic.

Nordic

Polaris has put the potential €1bn sale of its Danish ferry business Molslinjen on hold due to the collapse in traffic that it has experienced amid the coronavirus pandemic, Mergermarket reported on 9 April. EQT Infrastructure, Partners Group and Infracapital submitted initial bids in February for Molslinjen – which operates the main internal ferry routes in Denmark, as well as connections with Sweden and Germany. Copenhagen-headquartered Polaris last year appointed FIH to explore options for the business, which is expected to sell for as much as €1bn.

CEE

Ceska Zbrojovka Group could consider raising funds via a stake sale to a private equity firm or family office, as the coronavirus crisis makes a near-term IPO challenging, Mergermarket reported on 7 April. The Czech firearms maker has been targeting a Prague IPO during the spring to fund a new US factory, with an expected offering size of around €50m. Ceska Zbrojovka will make a definitive decision about whether to proceed with an IPO or seek an alternative source of funding in the next few days. The company posted EBITDA of around €50m and €22m in revenues in 2019.