The Deals Pipeline

Unquote team
26 July 2021

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

Burger King UK owner Bridgepoint is lining up investment banks to advise on a potential sale of the burger restaurant chain in 2022, Sky News reported on 25 July. A sale process is unlikely to start within the next year, although an auction could be launched early next year if sales maintain significant growth. Burger King UK could be valued at more than GBP 500m (EUR 583m). A stock market listing is another potential option for Burger King UK.

Germany

Industrial and technical services company Robur Group is lining up for sale. GCA Altium has been mandated to sell the business, which is yet to hit the market, Mergermarket reported on 23 July. The sale process is expected to start in Q4 2021 or Q1 2022. The asset generates around EUR 20m in EBITDA. Revenues stand at EUR 250m. Robur is owned by Unigestion. Robur ranks among the top 10 industrial service providers in Germany with around EUR 200m in sales in 2020.

Tekfor, a German automotive components manufacturer backed by KKR, could come up for sale later this year, Mergermarket reported on 22 July. KKR is evaluating its strategic options for the Offenburg-based company and could launch an auction as early as September. Macquarie is advising on the potential sale, which could involve up to 100% of the company's shares. Information memorandums are expected to be sent out from mid-September, with indicative bids slated to be collected around late September and early October. Tekfor generates around EUR 280m-285m in sales and close to EUR 40m in EBITDA on a last-twelve-months (LTM) basis. The company reported revenues from contracts with customers of around EUR 295m and EUR 16.3m in EBITDA in the financial year ending on 30 June 2020.

Benelux

Banking Circle backer EQT is mulling sale options for the payments infrastructure company, Mergermarket reported on 22 July. Citi and Morgan Stanley have been lined up to assist with the explorations. Preparations for a potential exit are expected to pick up after the summer. Options include a private sale and a merger with a blank-cheque company, as well as a listing via IPO. Any deal is likely to value Banking Circle somewhere between USD 5bn and USD 10bn. The business generates sales in the region of USD 300m and its EBITDA is said to be around USD 100m. An IPO is perhaps the likeliest outcome given EQT's tendency to hold on to its assets, while a Spac merger could be complicated by banking regulators. Digital payments providers like Wise, Stripe or Revolut could be attracted by its banking licences. Visa and Mastercard could also look in a bid to expand their infrastructure.

Southern Europe

Unigra, an Italian producer of margarine and vegetable oil, could come up for sale in the coming months, following unsolicited approaches by interested sponsors, Mergermarket reported on 22 July. Earlier this year, the company was in contact with several private equity funds looking to invest in it. In the recent past the Martini family, who own the business, could not reach a consensus on a potential stake sale, due to different views among the family members. In 2020, the company generated around EUR 62m in EBITDA from EUR 320m in sales.

Restaurant Brands Iberia, the owner of the rights in Spain and Portugal for Burger King, is negotiating its sale to Cinven for about EUR 1bn, El Confidencial reported on 21 July. Gregorio Jiménez, president of RBI and owner of 90% of the capital, confirmed talks to Cinven. Morgan Stanley and Bank of America are advising. In the last financial year prior to the pandemic, RBI reported EBITDA of EUR 112m.

France

Europcar Mobility Group is still in talks with Volkswagen after rejecting a takeover offer from the German car maker last month, Mergermarket reported on 21 July. Volkswagen made its approach for Eurazeo-backed Europcar with Pon Holdings and Attestor, which is the only bidder Europcar is talking to. Shares in Europcar on 21 July afternoon were trading at EUR 0.45, giving it a market capitalisation of EUR 2.25bn.

Finland

First-round bids for Finnish packaging group Ahlstrom-Munksjö's decor paper unit are expected next week, Mergermarket reported on 23 July. UBS has been appointed to run the sale of the business, which manufactures decor paper used in furniture, as well as laminate flooring and other design panels. The business is expected to be sold at an adjusted run-rate EBITDA of around EUR 45m-50m. A valuation of around 7x-8x EBITDA is a "reasonable" expectation for the business. HIG Capital and KPS Capital Partners are among sponsors that have previously been active in similar sectors and that could consider the unit. Ahlstrom-Munksjö is backed by a consortium led by Bain Capital alongside the Ahlstrom and Ehrnrooth families.