Wed 08/26/2020 12:53 PM
2019 Apax Press Release
2014 Apax Press Release
2014 HIG Press Release
Direct lenders are preparing a financing package to support a merger and acquisition of Apax-owned SK FireSafety Group, sources told Reorg. The Dutch fire safety business’ expected enterprise value is about €120 to €130 million, based on €15 million EBITDA and a multiple of about 8x, sources said. The group’s leverage level should be between 4.5x and 5x, sources added. Continue reading for the EMEA Core Credit Middle Market team's update on a possible merger and acquisition of SK FireSafety, and request a trial to follow more middle market news across the region.
Indicative bids have been received with subsequent bids expected by the end of the month, sources said. A competitive group of private equity firms have shown interest in the business with only one trade buyer also understood to be in the process. Sun Capital and HIG Capital are some of the potential sponsors that have expressed interest, although HIG Capital could have left the process, according to a source close to the situation. Apax has hired KPMG to run the process.
Apax Partners acquired the business in 2014 from individual shareholders, Scheybeeck Investments and Bencis Capital Partners. HIG WhiteHorse provided a €70 million unitranche to support the acquisition, according to a statement at the time.
In 2019, the company sold its AeroSafety division to California-based private investment firm LLCP to focus on the Benelux and Nordic countries, according to a statement at the time. The company said it had generated about €100 million in revenue in 2018 with a “high teens” EBITDA margin from its fire safety business. Also, the company refinanced its debt in 2017. According to Apax’s website, SK FireSafety’s current revenue is €124 million.
Netherlands-based SK FireSafety provides solutions against fires and other accidents. The company supplies portable firefighting products to all sectors and users.
Apax Partners and KPMG did not respond to Reorg’s request for comment.