The Deals Pipeline

Unquote team
17 May 2021

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

Private equity firm Exponent is looking to exit Evergreen Garden Care, a UK-based garden care products company, in an upcoming sale process, Mergermarket reported on 12 May. The sponsor has appointed Rothschild to advise. The process is expected to launch in the second half of the year. Evergreen generates EBITDA in the £50-55m range and could be valued at 10-12x EBITDA. The company's revenues increased to £413.7m in the year to September 2020, from £375.2m in the previous year, with adjusted EBITDA of £49m. Given its size, large-cap private equity firms like Blackstone, Carlyle, Permira and TA Associates might be suitable buyers, the report noted.

On 14 May, listed fund administration business Sanne Group rejected the £1.3bn buyout offer made by private equity house Cinven. Cinven presented its proposal of 830 pence per share to Sanne earlier this month. The GP has until 11 June to make the firm another offer or walk away. Sanne's board said "the proposal significantly undervalues the company and does not merit further engagement". It also underlined that "the proposal was opportunistic and not reflective of the group's ability to deliver strong operating and financial performance as the macroeconomic environment continues to recover, or its longer-term prospects."

DACH

Deutsche Fussball Liga (DFL), the body that runs Germany's top league Bundesliga, has shortlisted several private equity bidders vying to acquire a 25% stake in an entity that will house the league's overseas broadcasting rights. KKR, Bridgepoint and CVC are among the private equity suitors to have advanced to a second-round of bidding, Reuters reported on 13 May. The auction could value the Bundesliga's overseas broadcasting rights at about €2bn. A meeting of football league clubs will be held on 19 May to vote on the proposal. Binding offers are due in June. Per a Mergermarket story from early May, Bridgepoint and BC Partners had submitted non-binding offers for the minority stake in Bundesliga's international media and data rights business. Apax was still interested in bidding, as were KKR and Silver Lake.

France

French satellite company Marlink has widened its sale process to include financial sponsors after ending informal takeover talks with Inmarsat, Mergermarket reported on 12 May. Owner Apax Partners, advised by BNP Paribas and Goldman Sachs, has reached out to private equity and infrastructure investors in recent weeks to gauge interest in the business. Indicative offers are due between the end of the month and early June. There is a chance one of the bidders could preempt the sale process given the asset has been on the block since last year, the report noted. Marlink is being marketed based on EBITDA of $125m and revenues in the region of $500m.

Southern Europe

Italian recycling specialist ReLife has shortlisted a mix of private equity firms and infrastructure funds – including CVC Capital Partners, Antin Infrastructure Partners, F2i and Whitehelm – for the second phase of its sale process, Mergermarket reported on 11 May. The deal will entail a stake of between 60% and 80% in the company. Binding offers are expected around mid-June and the second phase is expected to finish by the end of June. ReLife's 2021 EBITDA is expected to be around €50m, and is valued in the region of 10x EBITDA. Rothschild and Fineurop Soditic have been appointed as sell-side advisers, alongside Deloitte and Boston Consulting Group providing financial and strategic due diligence, respectively. Existing owners, including Xenon Private Equity with a 43% stake and several private individuals, could decide to reinvest.

CVC Capital Partners, Centerbridge, PAI Partners, Blackstone and JLL are preparing bids for Tinsa, a Spain-based asset valuation, consulting and real-estate big-data group, Cinco Dias reported on 10 May. American Appraisal, a subsidiary of US-based Duff & Phelps, has also been hinted at as a possible bidder, according to the report. The bids, of between €600m and €800m, are expected to be submitted before the end of this month. Cinven has hired Evercore and Rothschild to advise on the process. Tinsa reported 2020 revenues of €159m and EBITDA of €42m.