The Deals Pipeline

UK

J Sainsbury, a UK-based supermarket group, is said to have attracted takeover interest from Apollo Global, the Sunday Times reported on 22 August. The GP is believed to be at a preliminary stage of interest in J Sainsbury, but news of its interest may also hamper any deal. QIA and Kretinsky hold a combined stake of about 25% in J Sainsbury.

Wm Morrison Supermarkets bidder Clayton Dubilier & Rice (CD&R) could appoint its senior adviser Terry Leahy, the former chief executive of rival supermarket chain Tesco, as chairman of the company if its takeover bid succeeds, the Sunday Telegraph reported on 22 August. Wm Morrison announced on 19 August that its board has recommended a 285 pence per share revised cash offer from CD&R, which values the company at GBP 7bn. The board switched its recommendation from a 272 pence per share offer from a consortium led by Fortress Investment Group.

Apex Group's 920 pence per share indicative cash bid for Sanne has set a high bar for counter-offers as the stock market bets on the prospect of a bidding war, Unquote sister publication Mergermarket reported on 19 August. Sanne shares have soared this month following the news that the company had attracted a second suitor alongside Cinven and closed on 19 August at 934 pence, giving it a market capitalisation of GBP 1.5bn. Cinven's latest approach was at 875p a share.

Bowmark Capital is in the early stages of exploring a sale of its controlling stake in financial software company Pirum Systems, Mergermarket reported on 19 August. A formal sale process could launch towards the end of this year, or early in 2022. However, deliberations remain at an early stage with no certainty that Pirum will proceed with a sale.

Southern Communications sponsor Livingbridge has appointed Oakley Advisory to launch the sale of a stake in the managed IT services business later this year, Mergermarket reported on 16 August. Initial conversations with prospective investors are underway, although a process has not officially launched.

Spain

Intermediate Capital Group (ICG) is preparing the sale of Spain-based plywood manufacturer Garnica for the second half of the year, Expansion reported on 19 August. The GP has not yet mandated any financial adviser to coordinate the competitive process. Preparatory work for the sale will begin in September. Garnica's EBITDA is between EUR 40m and EUR 50m, which could bring its valuation to a range of between EUR 400m and EUR 500m.

FC Barcelona is considering the sale of 49% of Barça Corporate, the subsidiary in charge of the merchandising, audiovisual, and digital businesses of the sports club, El Confidencial reported on 16 August. Former club president Jospe Maria Bartomeu confirmed that Investindustrial had submitted an offer of EUR 220m for Barça Corporate. Two non-binding offers or letters of intent that Barça has received come from US fund Abry Partners and Artos. So far, current president Joan Laporta has not accepted any of these four offers.

Germany

CordenPharma is being prepared for a sale process expected to kick off in the fourth quarter, Mergermarket reported on 18 August. The current owner, International Chemical Investors Group (ICIG), is working with advisers at William Blair on the upcoming auction of the contract development and manufacturing organisation. The formal sale process is expected to start as early as October, but a late September launch is also possible. The sell side is aiming to sign a deal in the first half of 2022. CordenPharma is expected to be marketed based on core earnings north of EUR 200m. Deliberations remain at an early stage and there is no certainty that ICIG will proceed with a sale. At this stage, parties are working based on expected valuation multiples in a wide range of 10x-15x EBITDA. The asking price is likely to be around EUR 2bn.

1-2-3.tv, a German teleshopping company, has been put up for sale by owner Arcus Capital, Mergermarket reported on 19 August. Financial investors and strategic players have shown interest in the company, with another one cautioning that interest has so far been lukewarm. Still, the process is at an advanced stage with bidders. The company generates revenues of around EUR 140m-150m and is being marketed based on EBITDA of around EUR 10m.

Netherlands

PAI Partners is looking at options to exit Refresco, a Rotterdam-based bottler, including a prospective IPO that could take the company's valuation to around USD 6bn, Bloomberg reported on 20 August. PAI's talks are at a nascent stage with potential counsels with regard to the US listing. Formal preparations could begin in the coming few weeks.

Bencis Capital Partners has mandated Rothschild & Co to sell TBAuctions, Mergermarket reported on 17 August. Sources told the publication that the company is expected to be marketed based on EBITDA of more than EUR 16m.

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