The Deals Pipeline

Unquote team
14 June 2021

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

Second-round bids for Unilever's personal-care division are due at the end of June, Mergermarket reported on 9 June. Bidders KKR and PAI Partners are in the mix, while Advent has dropped out. The firm has hired Credit Suisse to sell brands such as Q-tips cotton buds, Timotei shampoo, Radox shower gel and Caress body wash, totalling €660m in annual revenues and about €165m in EBITDA. Unilever remains likely to realise the €1.5bn EV reported for the asset at the outset of the process.

Doubts are looming over the $800m-1bn auction of Autovista as the deadline approaches for bidders to submit binding offers for the auto information provider, Mergermarket reported on 10 June. Thoma Bravo and Genstar Capital are in the second round, after sponsors, including Providence, dropped out over concerns about valuation and the asset's growth prospects. Apax was accepted to the second round of the auction, though it is unclear whether the sponsor is still in the race. Thoma Bravo is looking via JD Power, and Genstar via OEConnection, an Ohio-based automotive technology provider for OEM distribution networks. The remaining bidders are struggling to value the business as neither agree with the sell-side's price guidance of $800m-1bn. The business is unlikely to exceed a 15x EBITDA multiple. Autovista is being sold based on a €45m 2021 EBITDA, up from €40m a year earlier. Autovista's adjusted EBITDA for the financial year ending in December 2019 increased 7.5% to €35.5m, while revenues grew to €108m from €101m.

France

France-based family-owned nursing homes operator SGMR Ouest has been put up for sale, with financial adviser Alantra conducting the auction, L'Agefi reported on 11 June. SGMR is controlled by the Mennechet and Péculier families, and could be valued at €1.1-1.4bn. The company operates 60 institutions, including the Les Opalines brand. Bidders include competitors DomusVi and Colisée. DomusVi just finalised a €4.3bn LBO led by ICG, while Colisée is backed by CDPQ and EQT. Colisée could be close to winning the race.

The involvement of Groupe ECT in the huge public transport network project Grand Paris is driving interest from both sponsors and infra funds in the ongoing sale process for the French waste management company, Mergermarket reported on 11 June. The infra project, expected to attract €26bn in investment by the time it is completed, according to its website, should provide contracts to ECT for years to come. ECT will be marketed based on an annual EBITDA in the €70–80m range in its sale process. CVC and ICG have been looking at the business ahead of first-round bids. Infravia is also circling the asset. Rothschild is sell-side adviser for the Chequers Capital Partners-owned group.

French nursery group Grandir is on the brink of securing a new shareholder to replace existing investor Eurazeo, Mergermarket reported on 11 June. Wendel Group, Infravia Capital Partners and Ardian are expected to submit binding offers for the business, which operates Les Petit Chaperons Rouges and other premium nursery chains. Partners Group and Naxicap were accepted to the second round of the auction last month, though it is unclear whether the sponsors are still in the running. A minority stake is now on offer as CEO Jean-Emmanuel Rodocanachi, who owns 51% of the business, intends to remain the majority owner. However, some of the bidders are still preparing offers for a majority stake. The remainder of the business is held by Eurazeo, with 41%, and BPI France, with 8%. Grandir generates EBITDA in the region of €50-60m. It is targeting €425m in revenues this year. Lazard is advising on the process.

DACH

AutoForm, a Swiss industrial software business, has been put up for sale, Boersen Zeitung reported on 9 June. AutoForm's owner, Astorg Partners, is examining a sale of the company with the help of Evercore and Jefferies. AutoForm is valued in the €1-2bn range.

Italy

Eurovita, an Italian life insurance group being sold by Cinven, has Blackstone in pole position to acquire it, Milano Finanza reported on 11 June. Blackstone is being advised by Goldman Sachs. The sales process is now in its final stage and the deal value could be more than €600m. Cinven has hired Deutsche Bank to find a buyer for the asset. Eurovita has premiums of €2.6bn, reserves of €18.9bn, and posted a profit of €37m in 2019. Earlier last week, Milano Finanza had reported that Apax Partners-owned Gama Life was in pole position. There is a possibility that Cinven might pull the sale because low interest rates mean it is not the best time to sell.

Etro, an Italian fashion house, is close to selling a 60% stake to L-Catterton, Il Sole 24 Ore reported on 9 June. A deal is likely to be inked this month. Etro is being advised by Rothschild. The company posted a turnover of almost €285m and EBITDA of €15.7m in 2019. Previous reports have estimated the deal value at €500m.