Thu 08/13/2020 07:16 AM
Direct lenders are preparing an aggressive financing package to support the acquisition of Belgium-based animal feed company Innovad with banks not interested in participating, sources told Reorg. Leverage levels should be about 5x to 5.5x, the sources added.

A few private equity firms reached the second bidding round of the process with non-binding offers sent last week. EQT, CVC, IK Investment Partners and Gilde Buy Out Partners are among the bidders that have shown interest, sources said.

ING Amsterdam is running the M&A process.

According to the sources, the business could fetch a valuation of €240 million based on €20 million EBITDA and a multiple of 12 times.

In terms of the debt financing, sources told Reorg that the package could be similar to the bridge financing provided to Royal DSM’s acquisition of Austrian specialty animal nutrition and health company Erber Group in June. Erber was valued at an EV of €980 million and the transaction represented an EV/EBITDA multiple of about 14x the forecast 2020 EBITDA, according to the DSM website.

Founded in 2010, Innovad is owned by its founder, Jamal Al Saifi. The company provides animal food and water additives and is in Antwerp while its brands and services are available in more than 70 countries. In June, the company acquired Eco Treasures, a business producer of fruiticals and naturals based on vegetal raw materials, for an undisclosed amount.

Innovad did not respond to Reorg’s request for comment at the time of publication.

--Lucía Camblor
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