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The Deals Pipeline

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

DACH

Sportradar has appointed JP Morgan and Morgan Stanley to lead an IPO-led dual-track process for the company. It is expected to see the sports data group valued at more than $5bn, Mergermarket reported on 10 November. The Switzerland-headquartered company, backed by Mark Cuban and Michael Jordan, is targeting a flotation in the US, but would consider a merger with a special purpose acquisition vehicle (SPAC) should an IPO fail to materialise. Sportradar, which reported adjusted EBITDA of €81m for the year ending August 2020, is expected to float in the first half of next year.

Southern Europe

Eurazeo adviser BNP Paribas has begun a process to sell Iberchem, the Spain-based perfumes and fragrances company; bids will be restricted to international fragrance and aroma industry players, Expansion reported on 12 November. New York-based International Flavours & Fragrances is the favourite to lead the process and close a deal before year-end. Private equity funds with a presence in Spain including Carlyle, KKR, Cinven, CVC, PAI Partners, EQT and Bridgepoint could offer around €650-700m for the company. Iberchem, headquartered in Alcantarilla (Murcia), anticipates sales of more than €200m and EBITDA of around €50m this year.

Antin is in pole position to acquire Hippocrates Holding, the Italian pharmacy group, Il Sole 24 Ore reported on 15 November. Antin beat bids from PAI Partners and Eurazeo. The equity value offer from Antin of around €420m was considered the strongest. In the 12 months ending in June 2020, Hippocrates posted €45m EBITDA on €200m revenue. The auction began in September when Hippocrates mandated Deutsche Bank, Mediobanca and Latham & Watkins to advise on a majority stake sale.

UK

ICG and CVC are among a limited pool of suitors in the second round for the sale of management consulting firm PA Consulting Group, Mergermarket reported on 11 November. Another trade bidder has been admitted to the round – thought to be US company Jacobs Engineering Group. Carlyle owns 51% of PA Consulting, with the remainder held by management, which owns a higher percentage of voting rights than Carlyle. Binding offers are due in the next couple of weeks. Sell-side advisers JP Morgan and HSBC are marketing PA Consulting based on EBITDA of around £120m.

Unilever's disposal of its black-tea unit will start in 2021, Mergermarket reported on 13 November. The asset for sale – Unilever's black-tea brands outside India and Indonesia, and excluding its ready-to-drink joint venture with PepsiCo – was previously reported as being prepared for a Q3 2020 launch. Instead, the process could begin as late as Q2 2021. Preparations for a dual-track process are one reason for the delay. Should it not list in favour of a private sale, KKR, Jacobs Holding, Advent International, Bain Capital, Blackstone and Clayton Dubilier & Rice are among the funds that could be interested in the asset. Sovereign wealth fund Abu Dhabi Investment Authority and Cinven have explored a joint bid. Unilever could further break up the unit so that at least its Asian operations might attract a Japanese bidder. The asset could fetch up to €5bn, based on a 2x revenue multiple.

France

Ardian, BC Partners and CVC are among suitors mulling a bid for AD Education as the auction for the French operator of art and design schools kicks off, Mergermarket reported on 12 November (BC Partners is a minority shareholder in Acuris, publisher of this news service). Prospective bidders received information memoranda for the asset in November. Others financial investors intending to take part in the auction include Bridgepoint and Belgian family office Compagnie Nationale à Portefeuille (CNP). Naxicap, TA Associates and Wendel, as well as infrastructure fund Infravia Capital Partners, could also join the race. The company could fetch an enterprise value north of 15x its €29-39m EBITDA.

Consolis, the France-based pre-cast concrete provider, is understood to be engaged in advanced negotiations with TowerBrook regarding the sale of its rail activities, Capital Finance reported on 11 November. Consolis, controlled by sponsor Bain Capital, has appointed Rothschild to assist in the sale process. The targets generate EBITDA close to €30m on revenues of around €170m annually.

Nordic

Second-round offers in MB Fund's sale of Kotkamills, a Finnish cardboard packaging manufacturer, are due in early December, Mergermarket reported on 12 November. The bidders admitted onto the second round include strategics and a few private equity firms. Triton Partners is among the potential buyers. Kotkamills is being marketed based on €55m EBITDA. Macquarie Capital is the sell-side adviser.

CEE

InPost, the Polish parcel-locker company being marketed for sale by Advent International, is simultaneously being prepped for a possible stock market flotation next year, Bloomberg reported on 11 November. JP Morgan, Goldman Sachs and Citigroup have been lined up as IPO global coordinators. The private equity sector has shown strong interest in InPost's auction process.

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