Relevant Document:
2019 Financial Report
Belgian mobile filtration provider Desotec has started a sale process with a lender education expected to be organized in two weeks, sources told Reorg. Leverage levels are expected in the range of 6.5x to 9x, sources added.
Continue reading for the EMEA Middle Market by Reorg team's update on Desotec, and request a trial for coverage of stressed, distressed and high-yield credits in the region.
The EQT-backed company is marketed off an estimated EBITDA of €36 million in 2020 and could reach a valuation between €576 million to €612 million based on multiples of 16x to 17x, sources said.
Rothschild is running the sale process which is on a fast track and is attracting sponsors, sources added.
In August 2017, EQT acquired Desotec through its EQT VII fund from AAC Capital Partners and other minority owners. The company was valued at about €280 million based on €20 million EBITDA and a multiple of 14x at the time, sources said. Pemberton, advised by Ashurst, provided a second lien loan to support the acquisition, supplemented by a senior loan from a consortium of lenders including ING Belgium, KBC Bank, Investec Bank, NIBC Bank and IKB Deutsche Industriebank, according to a
release at the time.
In 2019, the company acquired Finnish mobile filtration Odoroff, according to its
website.
In the year to Dec. 31, 2019, the company reported a 7.7% year-over-year increase in revenue to €32.1 million, according to the Desotec International report. The company’s financial debt included €38 million as of the end of 2019.
Founded in 1990, the company provides purification of liquids and gases through mobile-activated carbon filters. Headquartered in Roeselare, Belgium, the company also has offices in Italy, Spain and Poland.
EQT declined to comment. Rothschild did not respond to Reorg’s request for comment at the time of the publication.
--Lucía Camblor