
The Deals Pipeline
A fortnightly highlight of deal processes underway and involving private equity, either on the buy- or sell-side, across Europe.
DACH
Blackstone, Hellman & Friedman and Permira are in talks to team up for eBay's European classifieds division ahead of an interim bidding round on 21 May, Mergermarket reported on 13 May. With roughly €450m in EBITDA, the deal is a significant size for any sponsor, according to sources that spoke to Mergermarket. Other large private equity firms around the deal include Cinven, Apax, Silverlake and General Atlantic, which may also look to team up with trade bidders running in the process, one of the sources said. In its latest quarterly update on 29 April, eBay said it is holding active discussions with multiple parties for its classifieds business and will provide an update on the process by the middle of the year.
UK
Cerberus and Corsair have expressed willingness to take over Travelex, a London-based foreign exchange firm and a subsidiary of British financial services holding company Finablr, Sky News reported. Travelex is looking for bidders via advisers in response to its parent company's alleged £81.7m ownership fraud, alongside a sharp fall in revenue following the coronavirus outbreak. PwC is the adviser on the sale. Travelex, with around 10,000 employees, has operations in 60 countries and has £300m outstanding debt in a bond.
Alteri and Aurelius are believed to have withdrawn from the sale process for London-based footwear chain Office, the Daily Telegraph reported. Office's majority owner, Truworths, a retail group headquartered in South Africa, engaged Alvarez & Marsal to manage a sale of the footwear chain. Office was valued at £256m when it was acquired by Truworths five years ago. Office generated £285m sales in the year to July 2019 and generated a £15m profit.
Southern Europe
Bridgepoint is considering bringing Madrid-headquartered utility Miya Water to market, Mergermarket reported on 13 May. Citi and EY are helping prepare the eventual sale. There is a chance it could come to market in September. Marubeni Corp could be a bidder. Bridgepoint acquired Miya in January 2019 for an enterprise value of €400m.
Benelux
Netherlands-headquartered HR technology company Effectory's sale process attracted robust private equity interest ahead of first-round bids last week, Mergermarket reported on 15 May. Sell-side adviser Raymond James reached out to a wide pool of potential suitors, and around 15 parties were expected to submit offers, most of them sponsors, sources said. Bidders are yet to hear whether they made the cut, one of the sources added. Effectory is being marketed based on €6-7m EBITDA from around €20m in revenues.
Nordic
Norvestor, guided by Carnegie, is running an advanced-stage process to exit portfolio company Wexus Gruppen, Mergermarket reported on 14 May. Binding bids for the modular building provider are due by the end of this month, two sources said, without specifying the date. The process is very much live despite the Covid-19 pandemic, which has caused structured M&A processes largely to be postponed, one of the sources said. Wexus's consolidated revenue was approximately NOK 200m (€17.86m) in 2018, according to the company's website.
CEE
Croatia-based technology company Infobip has gathered first-round bids for a €300m capital raise for a minority stake, advised by Citi, Mergermarket reported on 16 May. Insight Partners, CVC's Growth Partners, and Blackstone's Tactical Opportunities are among parties that have shown interest. Late-stage venture capital funds active in Silicon Valley are likely to take an interest in the raise, especially as Infobip runs communications for client Uber. Infobip generated €440m in revenues in 2018, and is predicted to reach €600m in 2020, based on 20% gross margins.
Previously slated for the beginning of this year, the sale of Polish pharmacy chain Apteki Gemini is unlikely to launch before the coronavirus-induced market uncertainty subsides later in the year, Mergermarket reported on 11 May. Owner Warburg Pincus is expected to revisit preparations to launch the auction in the autumn. The sponsor, which lined up UBS and Societe Generale at the end of last year, did not move beyond the preparatory stage and put the sale on hold due to the Covid-19 outbreak.
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