Multiple: European buyouts watch, Q3 2013
What’s coming up in Q4?
“It is encouraging to see the deal pipeline still growing, and a number of deals should complete this year, particularly in Germany. However, whether this upsurge in activity means that the European PE industry is back in full recovery mode remains to be seen, but the signs are certainly positive.”-Sachin Date, EMEIA Private Equity Leader, EY, UK
European market conditions during 2013 so far mean that the process of moving a deal from offer to completion is more difficult and taking longer. However, the pipeline of prospective transactions is in good shape, with a number of expected completions and exits anticipated during the remaining months of 2013 and into 2014.
UK PE house 3i has offered to purchase the 50% stake it does not already own in Nordic ferry company Scandlines (source: www.3i.com), while Pamplona Capital Management is set to acquire French funeral firm OGF (source: Reuters, 1 August 2013).
EWOS, an aquaculture feed and nutrition company, is to be sold to Altor and Bain Capital (source: www.ewos.com), while Bridgepoint’s €585m acquisition of AHT Cooling, an Austrian refrigeration equipment manufacturer, is expected to complete in October 2013 (source: www.bridgepoint.eu).
In the UK, CVC is expecting to receive approval for its acquisition of Domestic & General Group, the domestic appliance extended warranty company.
The exit pipeline also offers promise for the remainder of 2013. Numericable, the European cable operator backed by Carlyle, Cinven and Altice, is expected to float in November (source: FT.com). Meanwhile, TPG and DLJ Merchant Banking Group have agreed to sell their stake in Grohe Group, a sanitary fittings company, to LIXIL and Development Bank of Japan for €3.1b (source: www.grohe-group.com). The deal is expected to complete in the first quarter of 2014.