
The Deals Pipeline
A highlight of deal processes underway and involving private equity, either on the buy- or sell-side, across Europe.
UK
SVPGlobal has appointed Goldman Sachs and Rothschild to prepare the exit process for portfolio company Vita Group, Mergermarket reported on 14 September. The sell-side advisers have held informal conversations with a select group of sponsors to gauge investor interest in the manufacturer of polyurethane foam for furniture, flooring and other industrial applications. The process is in the early stages and the owners have not decided when to launch a sale. The Manchester-headquartered company is being marketed based on EBITDA of EUR 140m and is expected to be valued at a double-digit EBITDA multiple, implying an enterprise value of EUR 1.2bn-1.5bn. The sell-side could also consider an IPO or a listing via a special-purpose acquisition company.
J Sainsbury has engaged investment bank Robey Warshaw as an adviser amid speculation that the chain could attract a takeover bid, the Times reported on 19 September. Apollo Global Management was said to be interested in a possible takeover. J Sainsbury's market capitalisation stood at GBP 6.61bn at the close of trading in London on Friday, 17 September.
UK pension plan Universities Superannuation Scheme (USS) is among the preliminary bidders for Park Holidays, a UK-based holiday park operator, Sky News reported on 15 September. An offer was submitted by USS, along with other bidders including PAI Partners and KKR. HSBC and Royal Bank of Canada are advising Park Holidays on the auction. The deal value is expected to be in excess of GBP 500m.
France
HTL Biotechnology's sale by sponsor Bridgepoint has attracted a large crowd of suitors, thereby pushing up valuations beyond EUR 1bn, L'Agefi reported on 17 September. Bridgepoint has hired Natixis and Jefferies to organise a sale that will target solely financial investors in the earlier stages.
TowerBrook is preparing to exit its stake in Infopro Digital in a process that could kick off by the end of the year, Mergermarket reported on 17 September. The group has hired advisers at Morgan Stanley and Bank of America. Consultants have also been drafted to conduct due diligence work ahead of the sale. The sell-side has not decided when to launch a formal sale process, but an auction could kick off by Q4 or early next year. TowerBrook is aiming to pitch the business to US tech-focused private equity firms. Infopro generates EUR 125m-150m in EBITDA and revenues of around EUR 450m- EUR 500m.
DACH
TriStyle Mode, a German fashion company, is being prepped for sale by owner Equistone, Mergermarket reported on 16 September. The sponsor has appointed Lincoln to advise on the process, which is expected to begin shortly. In the six months to 31 March 2021, TriStyle reported EUR 316m in revenues and an EBITDA margin comfortably in the double-digit range. It is targeting turnover of EUR 600m-620m for the 2020/21 financial year.
Permira is mulling exit alternatives for CABB, in a transaction valuing the German chemicals firm at more than EUR 1bn, Reuters reported on 14 September. Permira could approve advisers before the year ends, and initiate a sale process chiefly targeting industrial bidders in 2022. A listing is also on the table.
Southern Europe
Private equity house BC Partners is understood to be preparing the sale of iQera (formerly MCS Group), a France-headquartered debt purchasing and recovery specialist, Les Echos reported on 16 September. iQera could be valued at more than EUR 1bn. No bank has been appointed yet to handle the sale process, which could be finalised by the end of the year.
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