The Deals Pipeline

Unquote team
09 August 2021

Tweet
Facebook
LinkedIn
Google plus
Send to

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

Philip Morris International (PMI), the tobacco group, has tabled a new offer for the British medicinal inhaler manufacturer Vectura pitched at 165 pence per share, the Financial Times reported on 9 August. PMI said the acquisition of Vectura would form part of the company's attempts to diversify "beyond nicotine". The PMI bid, which values Vectura at GBP 1.02bn (USD 1.42bn), comes two days after a 155-pence-per-share revised bid for Vectura from The Carlyle Group. Carlyle's offer is supported by the board of Vectura and by shareholders with a combined 11.2% equity stake.

Primary Capital – ICS Learn's UK sponsor – is expected to begin the sale process for its portfolio company after the summer, Mergermarket reported on 6 August. Information memorandums for the education group, which provides distance learning to individuals and businesses in HR, accountancy, high school and business management courses, are available.

Italy

FSI could sell its 28% stake in Adler Group, an Italian manufacturer of acoustic and thermal components for the automotive sector, Il Sole 24 Ore reported on 8 August. FSI has hired Rothschild to seek a buyer, which is likely to be another private equity firm. Adler posted EUR 1.25bn revenues in 2020 and an EBITDA of EUR 90m.

QuattroR has mandated Vitale and William Blair to prepare the sale of Fagioli in the coming months, Mergermarket reported on 6 August. The auction will kick off in the last quarter of 2021. QuattroR's 60% stake in Fagioli will be up for sale, and an additional stake held by Fagioli Finance, the controlling Fagioli family's holding company, could also be on the market. Fagioli is on track to generate more than EUR 25m EBITDA in 2021. The company posted a EUR 200m turnover in 2020, up slightly from EUR 195m for 2019.

Spain

Rolls-Royce on 4 August confirmed it had entered exclusive discussions on a potential sale of its ITP Aero unit to a consortium led by Bain Capital. The brief statement issued by the UK-headquartered aircraft engine maker was in response to recent press reports on Bain Capital's apparent victory over a competing Cinven-led consortium with a EUR 1.6bn offer.

Germany

German IT service Rednet is up for auction in a process run by Clearwater International, Mergermarket reported on 4 August. Capiton is among the final bidders in the auction, which is now likely to continue through the August break. The sale process kicked off earlier this year and is now quite advanced.

France

Engie is to receive first round offers for its services division, recently branded Equans, Mergermarket reported on 6 August. The French energy giant launched the sale in mid-July. The sale is likely to garner a multiple of around 8x its EUR 500m EBITDA. Two other sources pegged this higher, with its EBITDA closer to EUR 600m and the enterprise value stretching to 9x. KKR and Carlyle are among the parties interested. French engineering group Spie is preparing to participate in partnership with Clayton Dubilier & Rice, with bidding intentions also coming from industrial group Bouygues, Bain, Ardian, PSP Investments, CVC and PAI.

French IT group Atos is being viewed by several private equity firms as a potential takeover target, Mergermarket reported on 6 August. Potential bidders include Cinven, KKR, Advent and Bain. Banks including Rothschild and Lazard are seeking to position themselves for a potential mandate. HSBC is also looking to get involved. Atos's shares were down around 49% year-to-date as of 6 August, and the company has a market cap of EUR 4.28bn.