The Deals Pipeline

Unquote team
19 April 2021

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

Yo! Sushi's owner, Mayfair Equity Partners, is considering an initial public offering for the UK-based sushi restaurant chain, the Sunday Telegraph reported on 19 April. An IPO is thought to be one of several exit options under consideration by Mayfair. Mayfair acquired Yo! for £81m (€93.5m) in 2015. Mayfair subsequently made several acquisitions in North America that have increased the chain's enterprise value to $400m (€333m).

Blackstone and Permira are among several private equity firms mulling a bid for UK environmental consultancy ERM, Mergermarket reported on 9 April. Indicative offers were due towards the end of April. Silver Lake and KKR have also expressed interest in the London-headquartered business. Others include CVC, Carlyle and Partners Group. The sell-side, advised by JP Morgan and Lazard, is seeking a valuation of £2.6bn or 20x EV/EBITDA for the business. Omers and AIMCo acquired ERM for $1.7bn including debt in 2015 from Charterhouse Capital Partners. Other options for the business include a listing in the UK or a merger with a special-purpose acquisition company.

France

French day-care nursery group La Maison Bleue (LMB) has been conducting a beauty parade of banks in recent weeks to decide on potential exit opportunities, Mergermarket reported on 12 April. Macquarie Capital was among those invited to pitch for the mandate by JP Morgan and Rothschild. LMB will be marketed based on EBITDA of around €40m. Towerbrook and BPI France acquired a minority stake in the business in 2016 for an undisclosed sum. The deal saw CEO and co-founder Sylvain Forestier retain 60% of the company.

Cobepa, IK Investment Partners and Naxicap Partners are said to be the last contenders to acquire French orthopaedic equipment manufacturer Lagarrigue, Capital Finance reported on 12 April. Bidders are due to submit their offers on 21 April to the current majority shareholder, Ardian. The auction is being handled by Rothschild, based on an expected EBITDA of €25m for the year ending in September 2021. The report claimed that the target could fetch a €450m EV.

Germany

Several equity players have been admitted to the second round of the process to sell German metering specialist Engelmann Sensor, Mergermarket reported on 16 April. Deutsche Private Equity (DPE) is among the sponsors still involved, alongside EMZ Partners. Valuations for Capiton- and Nord Holding-backed Engelmann are stretching to 12x EBITDA. Engelmann has EBITDA of around €10m and generated €45m in revenues in 2020. Engelmann's EBITDA growth is expected to be moderate with 2022 estimates reaching €11.3m EBITDA, an increase of 11% over two years, as reported by sister publication Debtwire.

Italy

Fondo Strategico Italiano (FSI) is close to acquiring Gruppo Servizi Associati (GSA) from Armonia SGR, Mergermarket reported on 16 April. The deal value ranges between €270m and €330m. Sector multiples point to a potential valuation around 10-11x EBITDA. Last year, GSA generated €130m in sales, up 35% on 2019 with EBITDA of around €29m. The signing has been set for the middle of May. DC Advisory and Mediobanca are running the sale process.

Arcaplanet, the pet-care retailer being sold by Permira, has attracted the attention of Cinven, PAI Partners and BC Partners, Il Sole 24 Ore reported on 16 April. Arcaplanet is likely to attract interest from industry buyers such as Denmark-based pet-care retailer Maxizoo and UK-based Pets at Home. The auction is expected to start in May. Mediobanca and Bank of America Merrill Lynch have been hired by Permira to handle the sale. In 2019, Arcaplanet posted a turnover of €306m and EBITDA of €37m.

Norway

FSN Capital has appointed JP Morgan to guide the exit of SafeRoad Group, a Norwegian road safety equipment and infrastructure specialist, Mergermarket reported on 9 April. The company recorded 2020 EBITDA of NOK 563m (€55.7m) (a 47% increase compared to 2019), with sales growing 9% to NOK 5.3bn (€524m) for 2020. SafeRoad designs, manufactures and delivers products and services that improve road safety and road infrastructure standards.