The Deals Pipeline

Unquote team
27 July 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.

Gymshark's sale of a 20% stake has attracted interest from Permira, Sky News reported on 24 July. Other interested parties include General Atlantic and TSG Consumer Partners. Gymshark founder Ben Francis is thought to be willing to sell a stake of about 20% in the UK-based athletic clothing retailer. A Sky News report on 10 July said that PwC is advising Gymshark on the sale process. Gymshark is hoping that a deal will value it at up to £1bn. Inflexion, General Atlantic, TSG and L Catterton were all interested in buying a minority stake in Gymshark.

Benelux

Waterland could decide to sell its 22% stake in Belgian company Sarens, a specialist in crane rental, heavy lifting and engineered transport, De Tijd reported on 16 July. Sarens' turnover in 2019 was €663m. With improved results Waterland could look for a party to acquire the 22% stake it bought in 2011.

Southern Europe

Jakala, an Italian digital marketing and event organising group, has attracted the interest of EQT Partners, Milano Finanza reported on 15 July. Jakala is owned by the de Brabant family. Jakala posted turnover of €214m and EBIT of €19m in 2018.

The Italian Football League (Serie A) has extended a binding offer deadline for a minority stake in a TV rights newco until 27 July, Milano Finanza reported on 23 July. The report named bidders in the running were CVC, Bain Capital, Advent, General Atlantic, TPG, Apollo, and Wanda in tandem with Fortress. CVC, Wanda/Fortress, Advent and Bain are leading the pack. The funds are seeking a stake of 15-25%. Bain has Mediobanca and Nomura as financial advisers. A shortlist of three bidders will then be drawn up by Serie A clubs from 27 July to 28 July, with Serie A looking to close a deal by the end of September. CVC is offering €2.2bn for a 20% stake in the newco.

DACH

Prosus is out of the running for eBay's European classifieds business, leaving a private equity consortium and Adevinta vying for the unit, Mergermarket reported on 19 July. Prosus had submitted the highest offer by the final bid deadline of 14 July. eBay wants a strategic partnership with the new owner of the classifieds business, but Prosus was offering cash for an outright sale. Adevinta, meanwhile, is offering a mix of cash and shares that will give eBay a stake of around 50% in the enlarged classifieds business. The offer by the sponsor consortium of Hellman & Friedman, Blackstone and Permira also allows eBay to retain a stake of around 30%. eBay's classifieds division is being marketed at around $350-400m EBITDA, after coming down from $450m with a valuation of $8-10bn.

The sale of Avaloq, a Swiss core banking software and services company, has been initiated, Mergermarket reported on 16 July. IMs for the Warburg Pincus-backed company were distributed earlier in July. Initial offers are due 17 August. Sell-side materials have been distributed to at least 25 bidders, including private equity firms and trade players. Bidders looking to proceed to the next round will have to bid at least 20x EBITDA. Avaloq's adjusted EBITDA grew by 7% to CHF 97m (€91m) in 2019. Permira, EQT, TPG, Advent, Bain, Astorg, Cinven, KKR and Hg are among large-cap sponsors showing interest in the asset. CVC is also keen. Potential trade players could include Switzerland's Temenos, FIS, Fiserv and Ion Group (the parent company of Unquote publisher Acuris).

France

KKR is in discussions to acquire France-based Elsan, Bloomberg reported on 18 July. Elsan's owner, CVC Capital Partners, is looking for a deal that values the French hospital group at €3.5bn. CVC is also weighing options to list its business. CVC is working with Rothschild on a sale tentatively valued at between €3.5bn and €4bn.

Nordic

Flying Tiger of Copenhagen's founder, Lennart Lajboschitz, has not yet decided whether he wishes to exit at the same time as the Danish retail chain's major shareholder EQT, according to Borsen. EQT wishes to sell the Danish company by the end of next year as the fund in which Flying Tiger is held will reach its 10-year mark. EQT has looked at its exit options several times, including an IPO and sale. Lennart Lajboschitz owns 29% of Flying Tiger.

Diaverum's future is still undecided and both a sale or IPO of the Swedish renal care group are still possible, Dagens Industri reported on 27 July. Diaverum, which is controlled by Bridgepoint, was reportedly set to list in June at a value of SEK 22-23bn (€2.1-2.2bn). SEB and Carnegie are still mandated to evaluate a possible IPO.