The Deals Pipeline

Unquote team
22 March 2021

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

France

Worldline's payments terminals business, TSS, has attracted interest from Apollo Global Management, KKR, Platinum and Apax ahead of the launch of a sale process next month, Mergermarket reported on 19 March. Sell-side advisers UBS and BNP Paribas were planning to launch the sale of TSS in March following a strategic review by Boston Consulting Group. The process is now expected to launch in the coming weeks as the review is taking longer than expected. Worldline would like to sell to a private equity firm and retain a minority stake in the business. TSS could go for around 8x EBITDA, equating to an EV of €3.03bn, according to Dealreporter analytics.

Several private equity firms are showing early interest for Lagarrigue, a French orthopaedic equipment manufacturer, Mergermarket reported on 18 March. Naxicap, IK Investment Partners, Eurazeo and CNP are all lining up ahead of first-round bids. Cobepa and HDL are also looking at the asset. The asset is marketed based on a €24m last-12-month EBITDA. First bids are due the first week of April. Edmond de Rothschild is advising sponsor Ardian on the sale.

Stirling Square and Sagard are battling it out to acquire Médisup Sciences, a French provider of preparatory courses for medical admission tests, Mergermarket reported on 17 March. The business is marketed based on a €20-25m EBITDA. It could fetch a valuation in the 12-13x range. Final bids were due on 22 March. Sagard is considering acquiring a minority stake rather than a majority stake.

Hayfin Capital Management's sale process for automotive data provider Autovista is expected to launch formally in early April, Mergermarket reported on 18 March. Sell-side adviser Jefferies has held informal fireside chats with private equity and trade players over the last week. Thoma Bravo and Genstar Capital are interested in the UK-based business and have looked closely at the opportunity for the last few months. Autovista has attracted further interest from Providence and Ardian. The sell side has reached out to other large cap sponsors like Apax Partners and KKR, as well as trade players including Verisk Analytics. The sell side expects to fetch a valuation in the region of $800m-1bn.

Benelux

Waterland is looking to sell its 22% stake in Sarens, a Belgian company that provides crane rental, heavy lifting, and engineered transport, De Tijd reported on 20 March. Waterland is exploring its strategic options. In 2019, Sarens recorded a turnover of €663m with a gross profit of €166m. The remaining 78% is owned by the founding family of Sarens.

CEE

Milarex, a Poland-based salmon-processing company owned by Summa Equity, is in the early stages of a sale, Mergermarket reported on 19 March. Squarefield is advising the sponsor, with teasers already out. The asset's turnover reached PLN 1bn in 2020, with EBITDA in the €12-15m range. Potential trade buyers may include France's Labeyrie, as well as various Norwegian salmon producers. The process may yet become a dual-track exit, in which case the vendor will hire a co-adviser.

Italy

Conceria Pasubio, an Italian manufacturer of premium leather for the automotive industry up for sale by CVC, has attracted the interest of both private equity and industry suitors, Il Sole 24 Ore reported on 17 March. Vendor due diligence is presently taking place and JP Morgan is advising CVC on the sale. Conceria Pasubio is likely to be valued at €700m based on a 10x-12x EBITDA multiple. In 2020, the company posted revenues of €265m and EBITDA of €65m, compared with €316m in turnover and €60m EBITDA in 2019.

Germany

Sennheiser has initiated a process to find an investor for its Consumer Electronics unit, as potential bidders start to scrutinise the division's margin and top-line growth prospects, Mergermarket reported on 16 March. GCA Altium is advising the German audio specialist in the process. Information memorandums have been distributed in recent weeks. Initial offers are expected before the end of March. Carlyle and Permira are among those looking at the asset.