The Deals Pipeline

Unquote team
08 February 2021

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

DACH

AutoForm, a Swiss industrial software business backed by Astorg, is to come up for sale in the second half of 2021, Mergermarket reported on 6 February. The business generated €75m in EBITDA in 2020. AutoForm is expected to achieve a valuation of around 15x EBITDA, and the deal could fetch more than €1bn. Another source said AutoForm would be valued at €1.3-1.5bn, or 20-25x EBITDA. Both sponsors and strategics are circling the asset already, including Partners Group, Warburg Pincus and Hg. Permira, TA Associates and Autodesk are also looking at the asset.

Rodenstock's owner, Compass Partners, is discussing with Jefferies a possible sale of the Germany-based manufacturer of progressive lenses, Reuters reported on 4 February. The deal value could be around €1.5bn. The auction could begin after Easter. In 2019, the company reported €103m in profit from sales of €450m.

HIG European Capital Partners is among the four shortlisted bidders for KPMG's restructuring unit, Sky News reported on 5 February. Intermediate Capital Group (ICG) and an unnamed financial investor are among the remaining bidders. The offers for KPMG's restructuring arm could be around £400m. ICG, Towerbrook and Duff & Phelps, the professional services firm partly owned by Permira, were reported to be first-round bidders.

Bowmark Capital has appointed Arma Partners to advise on its upcoming exit of Node4, a UK-based managed IT service, Mergermarket reported on 25 January. Coffee chats are underway. A formal sale of the business is expected to kick off in Q1 2021. The business could fetch a valuation multiple of up to 15x EBITDA. It generates around £22m EBITDA.

Southern Europe

Permira is exploring a sale of Arcaplanet, an Italian pet care retail chain, following unsolicited interest from two private equity firms, Mergermarket reported on 5 February. The sponsor saw the portfolio company attract inbound interest from PAI and Peninsula Capital. This wave of interest could push Permira to consider offers for Arcaplanet this year, even if it does not launch a formal auction. However, the sponsor's preferred route still is to conduct a structured sale process for the asset in 2022.

The sale process of Consulcesi, an Italian professional services provider focused on the medical industry, has attracted preliminary offers from Gyrus Capital and TA Associates, Mergermarket reported on 5 February. Binding offers could be expected towards the end of March. The Rome-headquartered company generated €30m in EBITDA on revenues of €50m in 2019.

France

The sale process for Calypso is launching next month as a raft of private equity and trade buyers line up to assess one of the largest auctions in France this quarter, Mergermarket reported on 28 January. Sell-side advisers Evercore and Jefferies handled "pre-screening" of the Bridgepoint-backed, Franco-American capital markets software company by potential suitors after requests for information. The sale has attracted several private equity firms including Astorg, Blackstone, Advent, CVC, EQT, Hg, BC Partners, KKR, Silver Lake Partners, Hellman & Friedman and TA Associates. Valuation estimates are so far in the region of $2.5bn or 25x EBITDA.

CVC, Blackstone, Advent and Bain are understood to be taking part in the auction for the Grand Frais food retail stores and the mon-marche.fr online store, Les Echos reported on 4 February. Owner Ardian, which controls Prosol, the holding company for Grand Frais, could see the target valued at between €3bn and €4bn.

Benelux

Triton is in the market to sell portfolio company Seves Group, which manufactures high-voltage electric insulators, Mergermarket reported on 3 February. Trade players and financial sponsors have been invited to the auction, and initial offers are due in the coming weeks. The entity comprises two units: France-based Sediver, which produces glass insulators used primarily for high-voltage applications; and PPC, the group's Austria-based porcelain insulators division, which primarily services sub-stations. The combined units generate revenues in excess of €150m, and recorded EBITDA of around €35m in 2019.

Nordic

Goldman Sachs Private Equity is engaged in exclusive acquisition talks with the owners of Advania, pre-empting the recently launched sale of the pan-Nordic IT service, Mergermarket reported on 4 February. A deal between the parties could be signed as early as in the next two or three weeks. Raymond James is guiding the company in the sale process. Advania generates around SEK 550m in EBITDA, with revenues in excess of SEK 5bn.